Am I eligible for the off-the-plan stamp duty concession?

Stamp duty, otherwise known as transfer duty, is a tax levied by the Government on transactions when you acquire an interest in the property. You may be eligible for Off the Plan (OTP) duty concession, depending on where the type of property is purchased and its location.

See below as we discuss stamp duty treatments in different states for off-the-plan properties.

From 1 July 2021 to 1 July 2023, the Victorian government has temporarily increased the stamp duty concession threshold for residential OTP property valued at up to $1,000,000.

Requirements

• Must be eligible for other Concessions such as:

• You must be over 18 years old; and
• You must use the property continuously for 12 months within 12 months of possession; and
• The dutiable value of your property, being the contract price less the construction costs incurred on or after the contract date, cannot be more than $1,000,000.00.
• This concession is not available to foreign residents, investors, companies, or a trustee of a trust.

Ordinarily, stamp duty is payable within three months of exchanging the contract. The OTP concession allows you to postpone payment of stamp duty for 12 months, or until the property has been completed or handed over, whichever comes first.

Requirements:

• You must be over 18 years old; and
• Principal Place of Residence: One purchaser must use the property as their primary residence and continuously live there for six months within 12 months of possession (i.e. settlement).

This concession does not available to foreign residents AND does not apply to investment properties, commercial, and vacant land.

For contracts entered into between 23 October 2019 and 24 October 2023, a rebate of 50 percent of the stamp duty and/or foreign buyers duty paid applies to pre-construction contracts of unit and apartment purchases in multi-tiered developments.

This rebate is given once the construction is completed.

Requirements

• This concession applies to:

• There is no limit on the dutiable value of the Property.

This concession is available to all buyers (natural persons, corporations, trustees and foreigners).

If you are uncertain whether you may be eligible for a stamp duty concession or exemption for your state or would like some more information, contact us at 03 9590 6180 and let us help you navigate through the eligibility requirements.