The Victorian Labor government has pledged an additional $61 million in the 2025/26 state budget to extend its stamp duty concession for off-the-plan apartments, units and townhouses by another 12 months. The move is designed to cut upfront costs, accelerate construction and save homebuyers an average of $25,000.
First introduced in October 2024, the concession allows purchasers to deduct 100 per cent of outstanding construction and refurbishment costs when calculating stamp duty. Crucially, the eligibility was widened last year to include not only first home buyers and owner-occupiers but all buyers of strata-titled off-the-plan dwellings, with no cap on property value.
Since its expansion, the average saving through the concession has been $24,517 per buyer. A typical purchaser of a $620,000 apartment now pays around $4,000 in stamp duty, down from approximately $32,000—a cut of $28,000.
“Young people can’t afford homes in a housing crisis, and I’m on their side,” Premier Jacinta 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.”
Treasurer Jaclyn Symes highlighted the benefit to both buyers and builders:
“We have listened to industry, and we’re acting. This isn’t just great news for homebuyers trying to get into the market. It’s also a huge win for homebuilders.”
Housing and building minister Harriet Shing said the extension would help ensure new homes are not only affordable but well-located:
“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.”
Planning minister Sonya Kilkenny added that the policy contrasted sharply with the Coalition and Greens, who she said were
“Working together to block new homes and lock young people out of their dreams.”
Beyond stamp duty cuts, the budget invests $24 million to develop 50 “Train and Tram Zone” activity centres in inner and middle Melbourne, speeding up approvals for apartments and townhouses near public transport hubs. A further $12.1 million will fund planning for 13,200 new homes and 8,600 jobs in Melbourne’s outer suburbs through precinct structure plans at Clyde South and Derrimut Fields.
Altogether, these measures aim to tackle Victoria’s ongoing housing shortage by driving a greater supply of both owner-occupier and rental properties in growth corridors and established suburbs.
For more details on off-the-plan concessions, visit sro.vic.gov.au/offtheplan.
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