The temporary off-the-plan duty concession has been extended to 21 April 2027, reducing duty for eligible apartment and townhouse purchases.
Strata apartments and townhouses temporary concession
Check eligibility and how the temporary concession applies.
Key information
A temporary off-the-plan land transfer (stamp) duty concession is available for residential property. It applies to:
- off-the-plan purchases of dwellings (including apartments and townhouses) within strata subdivisions that have common property
- contracts entered into on or after 21 October 2024 and before 21 April 2027.
The concession allows the purchaser to deduct the construction costs incurred on or after the contract date from the dutiable value of the property.
This concession is available to all off-the-plan purchases of residential property. It benefits those who are not eligible for the existing off-the-plan concession for owner-occupiers and first home buyers, which continues to apply.
Eligible residential properties
To be eligible, the residential property must be a lot in a strata subdivision that has common property, such as a shared driveway.
The concession does not apply to house-and-land packages which are not part of a strata subdivision that has common property.
The concession is available to all purchasers, including investors, companies and trusts. You do not need to be a first home buyer or live in the property as your home.
There is no threshold for this concession. The concession is available for apartments, units and townhouses of any value.
Timing
Eligibility is based on the date you entered into the contract of sale. To be eligible, you must enter into the contract on or after 21 October 2024 and before 21 April 2027.
Settlement date does not affect eligibility.
Foreign purchaser additional duty
The concession does not apply to foreign purchaser additional duty (FPAD). FPAD is calculated on the dutiable value of the property before the off-the-plan concession is applied. The off-the-plan concession only applies to general land transfer duty.
Calculating the concession
Purchasers can deduct the construction costs incurred on or after the contract date from the dutiable value of the property. Land transfer duty is then calculated on this reduced amount. Other concessions may also apply based on this reduced amount.
Example: contract signed before construction starts
Michelle signs a contract to buy an apartment off the plan for $1 million on 1 December 2024, before any construction work has begun. The vendor advises Michelle that $400,000 of the contract price will be spent on constructing her apartment.
Michelle can deduct the construction costs when calculating the dutiable value of the property. This means the dutiable value is $600,000 ($1 million − $400,000).
Example: contract signed after construction has started
Jordan signs a contract to buy a townhouse off the plan for $1.2 million on 1 March 2025. The vendor advises Jordan that construction costs will be $500,000.
When Jordan signs the contract, construction was 50% complete. Jordan can deduct construction costs of $250,000 ($500,000 × 50%). This means the dutiable value is $950,000 ($1.2 million − $250,000).
Jordan is also a foreign purchaser, so must pay FPAD on this transaction. FPAD is calculated on the $1.2 million purchase price.
Apply for the concession
Generally, your conveyancer, solicitor, financial institution or their agent applies for the concession through Duties Online and completing the Digital Duties Form.
Your vendor will enter the percentage of construction completed and other details into the Digital Duties Form. The form automatically calculates the concession.
Your representative then completes your part of the Digital Duties Form to claim the concession.