The Allan Labor Government has extended stamp duty concessions for off-the-plan properties in Victoria, pledging a further $61 million in the 2025–26 Budget to keep the policy running until October 2026. The move comes as part of a broader push to increase housing supply and bring more millennials into the market.
Originally expanded in October 2024, the scheme allowed a wider group of buyers to benefit from reduced stamp duty when purchasing newly built apartments, units, or townhouses. Unlike previous versions, the concession was no longer restricted to first home buyers or owner-occupiers and had no price cap. It offered full deductions on the value of construction yet to be completed when calculating stamp duty—bringing potential savings of up to $28,000 on a $620,000 property.
Premier Jacinta Allan said the move was aimed squarely at tackling the housing affordability crisis.
“Young people can’t afford homes in a housing crisis, and I’m on their side,” she 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.”
According to the Government, since the expanded concessions came into effect, buyers have saved an average of $24,517 each. The benefit applies to eligible properties within strata subdivisions—those with shared spaces like driveways or hallways—and is calculated based on how much of the build has been completed at the time of contract signing. On average, buyers end up paying only around a quarter of what they would under the usual stamp duty regime.
The initiative is backed by further Budget measures designed to increase housing stock, particularly in areas with access to transport, jobs, and services. A $24 million investment will fund the development of 50 new ‘Train and Tram Zone’ Activity Centres across inner and middle suburbs. These centres are designed to accelerate medium-density construction close to public transport hubs.
Another $12.1 million will go towards planning for 13,200 new homes in outer Melbourne, including two new Precinct Structure Plans—one at Clyde South and another at Derrimut Fields. Together, these are expected to create around 8,600 jobs.
Treasurer Jaclyn Symes said the extension was based on feedback from builders and developers.
“We have listened to industry, and we’re acting,” she said. “This isn’t just great news for homebuyers trying to get into the market. It’s also a huge win for homebuilders.”
Housing Minister Harriet Shing framed the plan as a long-term response to urban growth.
“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,” she said.
Planning Minister Sonya Kilkenny took aim at the opposition, accusing them of obstructing new supply.
“The Liberals and Greens are working together to block new homes and lock young people out of their dreams,” she said. “Only Labor is on the side of young people and families who want a good, affordable home of their own.”
The stamp duty relief sits within a larger suite of housing measures the Allan Government has introduced in recent years, as Victoria continues to face supply pressures and population growth. While property developers have welcomed the extension, some housing analysts caution that broader structural reforms will be needed to meet long-term demand.
For now, though, the tax cut is likely to encourage more purchases off-the-plan, giving a much-needed push to mid-tier apartment projects that have struggled with viability in a rising cost environment.
More details about the off-the-plan concession are available at sro.vic.gov.au/offtheplan
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