Starting today, the Victorian government, under Premier Jacinta Allan, has introduced a 12-month stimulus plan to reduce stamp duty on off-the-plan units, townhouses, and apartments. This initiative aims to promote denser developments and save buyers thousands of dollars.
The expanded concession, now uncapped and available to all buyers, is expected to reduce the stamp duty on a $620,000 apartment to just $4,000—a savings of $28,000. Premier Allan is set to unveil this policy as part of a series of housing-related announcements this week, aimed at incentivizing developers and offering more affordable housing options for Victorians.
This move follows the government’s plan to introduce 50 new activity centres around transport lines, which sparked protests led by opposition MPs. Critics argue that the proposal limits housing choices, with community rallies held in Moonee Ponds and Brighton.
The new stamp duty concession will be available for all off-the-plan strata properties, excluding detached homes and house-and-land packages. Savings will vary depending on the construction stage of the property. For example, a fully off-the-plan property that hasn’t begun construction would incur only about a quarter of the usual stamp duty.
Victoria’s property industry has long advocated for stamp duty reform, especially with rising interest rates slowing sales and stalling projects. Linda Allison, CEO of the Urban Development Institute of Victoria, welcomed the announcement as a way to bring investors and homebuyers back to the market but called for the concessions to extend beyond 12 months. She also urged the government to review taxes that limit foreign investment.
Cath Evans, the Property Council’s Victorian executive director, highlighted that this reform will help with the feasibility of new housing projects, supporting the state’s housing supply goals. Treasurer Tim Pallas also emphasized the reduction in upfront costs for both buyers and builders.
Premier Allan promised further housing-related announcements in the coming days, focusing on services for areas where new homes will be developed.
