Allan government extends massive stamp duty savings

Home buyers will continue to benefit from the Allan government’s housing policy that slashes stamp duty for all apartments, units and townhouses bought off-the-plan.

Victoria home buyers will have another year to cash in on massive stamp duty savings for all apartments, units and townhouses bought off-the-plan as the state government extends its popular housing policy.

In a bid to continue to turbocharge the housing market and incentivise more people to take up medium and high-density housing, the Allan Government today announced the popular home tax concession will run into next year.

Under the plan anyone buying off-the plan will have a significant portion of their stamp duty waived with no cap on the value of the property.

Originally the policy was set to expire on October 21, but will now run until October 2026.

The $61 million policy is the first sweetener to be announced ahead of next week’s release of the Victorian 2025-26 Budget.

Using the concession anyone who buys off-the-plan in Victoria would save $28,000 stamp duty on a $620,000 apartment – with duty slashed from around $32,000 to around $4,000.

However, concessions on high-end apartments could see buyers save north of $500,000.

Originally was set to expire on October 21, the policy will now run until October 2026. Picture: David Clark

Premier Jacinta Allan said the extra relief would get more people into homes sooner.

“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.”

Treasurer Jaclyn Symes said the measure was being extended because it was working.

“We have listened to industry, and we’re acting.”

The stamp duty concession has been extremely popular with buyers so far, with everyone from first home buyers to empty nesters cashing in.

But some have also raised concerns about premium and interstate buyers.

Premier Jacinta Allan has said the policy will get more people into homes sooner. Picture: Shae Beplate.

In December, it was revealed that high-end property marketers were promoting penthouses in Toorak and Brighton as having tax savings of up to $500,000 thanks to an Allan Government housing policy.

Stamp duty discounts for off-the-plan developments had previously been limited to first home buyers spending under $750,000, and for owner-occupiers spending less than $550,000.

However, property experts say removing the cap makes it easier for retirees to downsize.

This means more larger homes and land for development are hitting the market in inner-city suburbs.

The budget will also include $24 million allocated in the budget to create 50 ‘Train and Tram Zone’ Activity Centres in Melbourne’s inner and middle suburbs aimed at encouraging developers build more apartments and townhouses near train stations.