Victorian Premier Jacinta Allan has announced a significant reduction in stamp duty for off-the-plan apartments, units, and town-houses, aiming to boost the state’s housing market and ease the financial burden on buyers.
The new 12-month initiative, starting on 21 October 2024, will offer substantial savings for all off-the-plan purchases, encouraging more Victorians to consider higher-density developments.
Under the scheme, buyers of a $620,000 off-the-plan apartment will see their stamp duty reduced to just $4,000—a saving of $28,000. This marks a major shift from previous policies, where concessions were capped and primarily targeted first-home buyers.
Now, the expanded eligibility includes all buyers, with no value cap, providing a 100% discount on construction and refurbishment costs when calculating stamp duty.
Announcing the initiative, Premier Allan emphasised the need to support builders facing pressure from rising interest rates and slowing sales. The policy is part of a broader plan to address housing affordability and supply issues, with more housing-related announcements expected in the coming days.
“It’s good for builders, it’s good for buyers, and it’s good for building more homes,”
she said during an appearance on Seven’s Sunrise.
The changes follow mounting concerns from builders and developers, with the Victorian property market struggling under high costs and economic uncertainty. The state government hopes the stamp duty reduction will encourage sales and revitalise the off-the-plan sector, which includes properties in Melbourne and other high-demand areas.
In addition to boosting home sales, the government is also looking to promote denser living through townhouses and apartment developments near high-frequency train stations and tram stops. These plans, part of a larger effort to create 50 new “activity centres” around Melbourne, aim to deliver 30,000 additional homes by 2051.
However, the proposal has faced criticism from residents, particularly in affluent suburbs like Toorak and Brighton, who have expressed concerns over taller buildings and increased density.
Opposition Leader John Pesutto criticised the government for unveiling the plans without proper consultation, especially during the caretaker period ahead of council elections.
With the expanded stamp duty concessions in place until 21 October 2025, the government hopes to attract a wider demographic of buyers and stimulate the construction industry, benefiting both buyers and the broader economy.
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