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The Victorian government’s investment will enable buyers to access stamp duty concessions on eligible properties for another year.
As part of Victoria’s upcoming budget, to be released on 20 May 2025, the state government will invest $61 million to cut stamp duty costs for eligible off-the-plan apartments, units and townhouses for another 12 months.
The move comes after the state government expanded an existing off-the-plan stamp duty concession last year to offer a one-year tax concession for new apartments, units and townhouses, claimable by any buyer and not subject to any thresholds.
Since the introduction of the concession on 21 October 2024, the state government said that Victorian buyers have saved $24,517 on average through the scheme.
While the concession was originally due to expire in October 2025, the Victorian government has now allocated investment to enable eligible buyers to access stamp duty relief for a further 12 months.
Premier Jacinta Allan said that the expansion was fuelled by a desire to help young people step onto the property ladder.
“Young people can’t afford homes in a housing crisis, and I’m on their side,” Allan said.
“That’s why we’re slashing stamp duty for off-the-plan units and townhouses – to build more homes and make them cheaper to buy,” she added.
Through the expanded scheme, buyers can access 100 per cent deduction of outstanding construction and refurbishment costs when determining how much stamp duty is owed for eligible off-the-plan properties.
To be eligible for the scheme, a buyer must purchase an apartment, unit or townhouse in a strata subdivision, meaning it retains common property such as a driveway or a shared hallway.
Although the amount saved on stamp duty depends on how much construction has occurred on a property, the state government noted that purchasers of eligible off-the-plan apartments will pay roughly a quarter of the stamp duty they would have otherwise paid without the concession.
Treasurer Jaclyn Symes said the expanded off-the-plan stamp duty relief scheme was expected to benefit many Victorians.
“This isn’t just great news for home buyers trying to get into the market. It’s also a huge win for home builders,” Symes said.
State budget to deliver additional funding for Victorian housing
The Victorian budget is also expected to allocate $24 million to deliver 50 “train and tram zone” activity centres across Melbourne’s inner and middle suburbs, which will support the development of more apartments, units and townhouses in areas near train stations.
An additional $12.1 million will also be invested to deliver more family homes with backyards in the outer suburbs of Victoria.
The Victorian government noted that the investments will help to launch the planning work for 13,200 new homes and 8,600 suburbs in greenfield suburbs, which will be delivered through two new Precinct Structure Plans in Clyde South and Derrimut Fields.
Additionally, Minister for Housing and Building, Harriet Shing, said that the series of investments would help improve the supply and accessibility of housing in Victoria.
“As our city grows, we’re determined to help more Victorians to buy their own affordable, energy-efficient and well-built home that’s close to public transport, jobs and services,” Shing concluded.
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