Natalie Diener – Associate Solicitor, Property and Development
The State Government has announced a temporary expansion of the stamp duty concession is to apply to off the plan purchases of dwellings (including apartments and townhouses) where the property being purchased is within a strata subdivision. Previously, only purchasers who were to live in the property as their primary place of residence or first home buyers were eligible for the off the plan concession.
The eligibility of purchasers who now qualify for the off the plan concession now includes individuals, companies, trusts or investor purchasers. For foreign purchasers, the stamp duty concession can be applied, however the additional foreign duty will continue to be calculated on the full contract price.
To determine whether a property is within a strata subdivision, the plan of the property will have a common ownership title, usually a driveway or shared entranceway into an apartment building.
The temporary concession works by deducting the price of the construction costs from the contract price that are incurred by the builder from the day you enter into the Contract until settlement. For example, if you enter into a Contract where half of the dwelling has been built, half of the total construction cost will be deducted from the contract price and stamp duty will be assessed on the adjusted value.
The twelve month period of the concession will apply to eligible property purchase contracts that meet the above criteria signed between 21 October 2024 and 20 October 2025. When settlement of the contract occurs does not impact the availability of the concession.
If you would like to discuss whether the expanded off the plan concession will apply to a property you are considering purchasing, please feel free to give one of our experienced conveyancers a call to discuss on (03) 5445 3333.