Off-the-plan stamp duty — concessions and duty in NSW and Victoria

The short version

Stamp duty — formally transfer duty in NSW and land transfer duty in Victoria — is the state tax you pay on buying property. Buying off-the-plan doesn't remove it, but it can change the picture in two ways. In NSW, eligible buyers can defer paying duty for a period after signing. In Victoria, an eligible buyer may pay duty on a reduced value that leaves out the construction still to happen. Both help with a long build — but each comes with eligibility rules that change, so confirm the current position for your own purchase rather than assume the version a friend used last year still applies.

NSW — duty is deferred, not discounted

In NSW, off-the-plan buying doesn't cut the amount of duty. Duty is still worked out on the price you agreed. What changes is timing. If you're buying an off-the-plan residence to live in, eligible purchasers can defer transfer duty for a set period after the contract date — up to 12 months, or until the property is completed and handed over if that comes sooner. On a build that stretches out over a couple of years, deferral means you're not funding the tax while you're also servicing a deposit and waiting.

Separately, NSW runs first-home buyer assistance that can reduce or remove duty on lower-priced homes, including some off-the-plan and new-build purchases. The thresholds and rules are set by Revenue NSW under the Duties Act 1997 (NSW) and are reviewed regularly, so treat any figure you read online as a prompt to check the current eligibility, not a promise.

Victoria — the value you're taxed on can shrink

Victoria approaches it differently. Its off-the-plan concession can reduce the dutiable value — the amount duty is calculated on — by the construction or refurbishment costs that fall after the day you sign. The idea is that when you buy early you're largely buying land plus work not yet done, so you're taxed closer to that lower starting value rather than the finished price. The earlier in the build you sign, the more construction is still to come, and the larger the deduction tends to be.

This is a genuine reduction in duty payable, not just a delay — which is why it matters so much in Victoria. But it isn't automatic or open to everyone. Eligibility has historically been tied to buying the home to live in, and to price thresholds, with the rules set under the Duties Act 2000 (Vic). Those settings have been changed more than once in recent years, so the eligibility that applies to your contract is whatever is in force on your signing date — get it confirmed rather than relying on an older summary.

Why the difference matters

Because the two states reduce different things, a like-for-like comparison across a state border can mislead. A NSW deferral helps your cash flow but leaves the total the same; a Victorian concession can lower the total but only if you qualify. When you're budgeting an off-the-plan purchase, work out which mechanism actually applies to you and put a real, current number against it — not a headline. And remember Victoria layers its own extra cost on some land: the growth-areas infrastructure contribution can apply to land in designated growth areas, which we cover in the Victorian off-the-plan guide.

What to check before you sign

1. Which mechanism applies to you — a NSW deferral, a Victorian value concession, a first-home scheme, or none. Confirm it against the current rules, not last year's.
2. The eligibility conditions. Most concessions assume you'll live in the property; buying as an investor, a company or a trust often changes or removes them.
3. When duty falls due. A deferral has an end date — know it, so a delayed settlement doesn't leave duty owing before you're ready.
4. What the contract assumes. Some contracts state how duty is to be handled; make sure it matches the concession you're actually relying on.
5. Your total settlement cash. Duty, deposit balance and adjustments all land near completion — see our deposit and settlement guide for how the NSW numbers stack up.

Common questions

Does buying off-the-plan mean I pay no stamp duty?

No. In neither state is off-the-plan duty-free. NSW lets eligible buyers defer it; Victoria lets eligible buyers pay it on a reduced value. Whether you pay less overall depends on qualifying, and on the current rules — so confirm your position before you count on a saving.

Do I get the concession if I'm an investor?

Usually the main concessions assume the property will be your home. Investment purchases, and buying through a company or trust, commonly fall outside them or attract different treatment. If that's you, get advice on what actually applies rather than budgeting for the owner-occupier version.

The rules changed — which version applies to me?

As a general rule, the duty position is fixed by the law in force when you enter the contract, not when you settle. That's one more reason the signing date matters: it can decide which concession rules you fall under. Because these settings move, treat any figure or threshold as something to verify with the relevant revenue office or your conveyancer for your specific purchase. For the wider picture on either side of the border, see our NSW and Victorian off-the-plan guides.