Are you considering purchasing an off-the-plan property in Victoria? If so, the Victorian Government’s temporary off-the-plan duty concession, introduced on October 21, 2024, might be the perfect opportunity to make your property dreams a reality. This initiative not only aims to enhance housing affordability but also supports the real estate and construction sectors. Let’s dive into what this concession entails, answer common questions, and explore its potential impact on the market.
What Is the Temporary Off-the-Plan Duty Concession?
This concession is designed to reduce the stamp duty payable on eligible off-the-plan properties, making them more affordable for buyers. The key features include:
• Eligibility: Available to all buyers—including investors, companies, and trusts—of off-the-plan apartments and townhouses within strata subdivisions.
• No Price Cap: Unlike previous concessions, there is no limit on the property value to qualify.
• Dutiable Value Calculation: Buyers can subtract construction costs incurred post-contract signing from the purchase price to calculate the dutiable value.
For example, if you purchase a property for $1 million, with $400,000 attributed to future construction costs, your stamp duty will only apply to the remaining $600,000.
Q&A: Frequently Asked Questions
1. Who Can Apply for the Concession?
All purchasers, including foreign buyers, are eligible. However, the Foreign Purchaser Additional Duty (FPAD) applies to the property’s full value before the concession is calculated.
2. What Types of Properties Qualify?
Eligible properties include apartments and townhouses with common property areas. House-and-land packages are excluded unless part of a strata subdivision.
3. Is This Concession in Addition to Other Benefits?
Yes! First-home buyers and owner-occupiers can choose between this concession or existing schemes to maximize their savings.
4. How Long Is the Concession Available?
The concession applies to contracts signed between October 21, 2024, and October 20, 2025.
5. How Can I Apply?
Applications are typically managed by your conveyancer, solicitor, or financial institution through Duties Online.
6. Why Is This Concession Introduced?
It’s part of a government initiative to stimulate housing construction, improve affordability, and support economic growth.
Impact on the Real Estate Industry
1. Boosting Housing Supply
The concession is expected to encourage developers to launch more off-the-plan projects, increasing the availability of apartments and townhouses across Victoria.
2. Improving Affordability
By lowering upfront costs, the policy makes off-the-plan properties more accessible to a wider range of buyers, including first-time investors.
3. Supporting Market Stability
With Melbourne experiencing a surge in property listings, this initiative may help stabilize demand and attract more buyers.
4. Critics and Concerns
While the policy is widely welcomed, critics point out that the lack of a price cap might disproportionately benefit wealthier buyers and high-end developments.
Why It Matters
This concession represents a significant step toward addressing Victoria’s housing affordability and supply issues. For buyers, it’s an opportunity to save thousands on stamp duty. For developers, it’s a chance to attract a broader market and fast-track projects.
Whether you’re an investor, a first-home buyer, or simply curious about the market, this temporary concession could shape the real estate landscape in the coming year.
The temporary off-the-plan duty concession isn’t just a financial relief—it’s a chance to be part of Victoria’s evolving housing market. If you’re considering an off-the-plan property, this might be the perfect time to take the leap!
Disclaimer
This article provides general information and should not be considered professional financial, legal, or property advice. Eligibility, benefits, and figures related to the off-the-plan duty concession may vary and are subject to change. Please consult with qualified professionals or the State Revenue Office Victoria for specific advice. Core Elite Real Estate is not responsible for decisions made based on this content.
References and Resources
To learn more, visit the official State Revenue Office Victoria page or consult your conveyancer.
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