Off-the-Plan Stamp Duty Concessions β All Australian States (2026)
Buying off-the-plan can significantly reduce your stamp duty bill β but only if you understand how the rules work in your state. Most states calculate duty on the contract price minus the construction component, meaning you only pay duty on the land value at the time of contract. This guide explains the rules state by state.
Use our stamp duty calculator to estimate your duty on an off-the-plan purchase.
How Off-the-Plan Duty Works
When you buy off-the-plan, the contract is signed before construction is complete. Most states base stamp duty on the dutiable value at the time of contract, which is often significantly less than the completed property value. Some states allow you to subtract the construction cost from the contract price, leaving only the land component subject to duty.
The savings can be substantial β on a $700,000 apartment where $400,000 relates to construction, you may only pay duty on $300,000 rather than the full amount.
Quick Comparison by State
| State | Off-the-Plan Concession? | How It Works | First Home Buyer Eligible? |
|---|---|---|---|
| NSW | Yes | Duty on contract price minus construction costs | Yes β combined with FHB exemption |
| VIC | Yes (limited) | 50% concession on principal place of residence off-the-plan (within $1M) | Yes β FHB exemption applies to OTP |
| QLD | Yes | Duty on land value portion only at time of contract | Yes β FHB concession applies |
| SA | No specific concession | Duty on contract price at time of signing | FHB relief applies separately |
| WA | Yes | Duty on unimproved land value for off-plan strata | Yes |
| TAS | Limited | Duty based on contract price; no specific OTP deduction | 50% FHB concession applies |
| ACT | Yes | Duty based on contract price at time of purchase | HBCS exemption applies |
| NT | Limited | Standard rates; limited OTP-specific rules | FHB scheme applies |
New South Wales (NSW)
NSW offers one of the most straightforward off-the-plan concessions. Duty is calculated on the contract price minus the value of construction yet to be completed at the time of contract. This means if you sign a $750,000 off-the-plan contract where $450,000 represents future construction, duty is assessed on approximately $300,000.
The concession is available for both owner-occupiers and investors, though first home buyers can stack the OTP concession with the FHB exemption for maximum savings. Calculate your NSW stamp duty β
Victoria (VIC)
Victoria has a 50% stamp duty concession for off-the-plan purchases used as a principal place of residence, on contracts up to $1,000,000. This concession replaced the previous construction deduction model and applies a simpler 50% reduction on the duty that would otherwise be payable.
First home buyers buying off-the-plan can still benefit from the full FHB stamp duty exemption (up to $600,000) or concession (up to $750,000). The OTP concession applies to properties outside those thresholds. Calculate your VIC stamp duty β
Queensland (QLD)
In Queensland, duty on off-the-plan purchases is calculated on the land value portion at the time the contract is entered into, not the completed contract price. This can result in significant savings on higher-density apartment developments where the land component is a small fraction of total price.
First home buyers can still access the QLD concession on top of the OTP reduction. Calculate your QLD stamp duty β
Western Australia (WA)
WA applies duty on the unimproved value of the land for off-the-plan strata title purchases. This is particularly advantageous for apartment purchases, where the land component per lot can be very low compared to the full contract price. Calculate your WA stamp duty β
Key Risks of Off-the-Plan Purchases
- Market risk: If property values fall, you're locked into a higher purchase price.
- Settlement risk: Projects can be delayed or cancelled.
- Valuation risk: If the bank's valuation at settlement is less than the contract price, you may need extra funds.
- Stamp duty timing: Duty is generally assessed at contract date, not settlement β this can be years later.
Tips for Off-the-Plan Buyers
- Get a breakdown: Ask the developer for a land/construction split to calculate your duty savings.
- Confirm residency intent: Most concessions require owner-occupier intent β investors may face higher duty.
- Check FHB eligibility: If you're a first home buyer, you may qualify for stacked concessions.
- Use a solicitor: Off-the-plan contracts are complex β always engage a property solicitor.