Stamp duty explained: What off-the-plan buyers need to know

It's one of the biggest upfront costs in property - and one of the most misunderstood.

Stamp duty. Just the words are enough to make some buyers' eyes glaze over. It's a government tax on property purchases, it can add tens of thousands of dollars to your upfront costs, and - here's the part a lot of people don't know - buying off-the-plan can actually work significantly in your favour.

Every state has its own rules, its own concessions, and its own eligibility criteria. Which means the experience of buying off-the-plan in Brisbane looks quite different from buying in Melbourne or Perth. This guide breaks it down state by state, so you know exactly what might apply to you.

Bear in mind, though - governance around stamp duty can change, and fast! So make sure you always do your own research and get advice specific to your situation.

First, how does stamp duty actually work?

Stamp duty (officially called transfer duty or land transfer duty, depending on where you live) is a one-off tax paid to your state government when you purchase property. It's calculated as a percentage of the purchase price - and because it sits on a sliding scale, it can climb quickly as property values increase.

For off-the-plan purchases, there's an important difference to understand: in some states, stamp duty is calculated on the value of the property at the time you sign the contract - not at settlement. And because construction hasn't been completed yet, that value can be significantly lower than what the home will be worth when you move in.

In practice, that can mean a meaningful saving - sometimes tens of thousands of dollars.

The specifics, though, vary a lot depending on where you're buying. Here's what's currently in play across Australia's main markets.

Victoria

Victoria currently has some of the most generous off-the-plan stamp duty concessions in the country - and they apply to a wider range of buyers than most people realise.

How it works: When you buy off-the-plan, stamp duty is calculated on the dutiable value of the property - which is the contract price minus the construction costs yet to be incurred. If you sign early in the build process, when most of the construction still lies ahead, the dutiable value (and therefore the duty you pay) can be dramatically lower than the final purchase price.

For example: if you buy an apartment off-the-plan for $620,000 and $465,000 of that is outstanding construction costs, your duty is calculated on $155,000 - not $620,000. The saving can be significant.

The temporary concession (available until 20 April 2027): An expanded temporary concession, currently extended until 20 April 2027 (subject to legislation), allows all buyers - including investors - to deduct 100% of outstanding construction costs from the dutiable value. There's no price threshold and no requirement to live in the property. Importantly, this concession applies to strata-titled properties - think apartments and townhouses with shared common areas - rather than standard house-and-land packages or standalone homes on individual titles.

Buying your first home? If you're purchasing your first home to live in and it's valued at $600,000 or less, you may pay zero stamp duty altogether. A concessional rate applies for properties between $600,001 and $750,000.

Worth knowing: The temporary concession has a current expiry date, and the rules around it have changed more than once. Your solicitor will confirm what applies at the time you sign.

New South Wales

NSW takes a different approach. Rather than reducing the amount of stamp duty you pay, it offers eligible buyers the ability to defer payment - which can be useful for cash flow, but isn't the same as a concession.

The deferral: If you're buying off-the-plan to live in as your principal place of residence, you may be able to defer your stamp duty liability for up to 12 months after you sign the contract (or in some cases up to 15 months if construction hasn't yet started). You still pay the full amount - just later.

Buying your first home? This is where NSW gets more interesting. The First Home Buyers Assistance Scheme offers a full stamp duty exemption on new homes valued up to $800,000, and a concessional rate for homes between $800,001 and $1,000,000. If you're buying your first home off-the-plan, this can be a very meaningful saving.

Worth knowing: NSW doesn't currently offer a general stamp duty reduction for off-the-plan purchases the way Victoria and WA do - the main concessions are targeted at people buying their first home. If that's not you, factor the full duty amount into your budget.

Queensland

Queensland has made some significant changes recently that are worth knowing about, particularly if you're buying your first home.

The general rate: Queensland's transfer duty rates are generally lower than NSW and Victoria, which already makes a difference. For most buyers purchasing to live in, a reduced home concession rate applies - saving up to around $7,175 compared to the standard rate.

Buying your first home off-the-plan? Under Queensland's 1 May 2025 reforms, eligible first home buyers purchasing a brand-new home or off-the-plan property receive a full transfer duty exemption with no property price cap. While you must meet strict personal eligibility rules (like moving in within 12 months and having never owned property anywhere), this is a substantial savings opportunity for first-time buyers.

Everyone else: Queensland doesn't currently offer a broad off-the-plan concession for investors or repeat buyers in the same way Victoria does. Standard duty applies, though the home concession rate is available to owner-occupiers.

Worth knowing: Queensland's concession rules have been updated recently and further changes are possible. Your solicitor or conveyancer will confirm current eligibility at the time you purchase.

Western Australia

Western Australia has been particularly active in expanding its off-the-plan concessions, and the current offering is one of the most generous for all buyer types.

How it works: WA's off-the-plan concession is available to all buyers regardless of how you plan to use the property - whether you're moving in, renting it out, or adding to a portfolio - and covers apartments, townhouses, villas, units, and smaller developments like duplexes and triplexes in single-tiered strata schemes.

Full exemption up to $800,000: For eligible off-the-plan purchases (pre-construction contracts) valued up to $800,000, buyers may pay no stamp duty at all. A tapering concession applies for properties between $800,001 and $900,000, and a 50% concession applies above $900,000 - all capped at a maximum saving of $50,000. The concession applies to contracts signed from 12 March 2026 through to 30 June 2028.

Buying your first home? People buying their first home in WA are in a particularly strong position - a full stamp duty exemption applies on homes up to $600,000, with concessions extending to $800,000. This can be stacked alongside the $20,000 First Home Owner Grant available on new and off-the-plan homes.

Worth knowing: WA's concession scheme has expanded and extended several times - always worth confirming the latest thresholds with your broker or solicitor before you sign.

South Australia

South Australia offers some genuinely compelling incentives for certain buyers - and they're worth knowing about.

• Buying your first home? Eligible first home buyers pay zero stamp duty on off-the-plan homes, brand-new builds, or vacant land - with no property price cap currently applying. This exemption applies to new homes and off-the-plan purchases only; established homes don't qualify. Eligibility conditions apply, so confirm your situation with your solicitor before you sign.
• Ready to move into something smaller? South Australians aged 60 or over who sell their existing home and buy a new or off-the-plan property valued up to $2,000,000 can access a 100% stamp duty exemption, saving up to $103,830. The exemption applies to contracts signed on or after 25 March 2026, and the new home must become your principal place of residence.
• Everyone else: Standard stamp duty rates apply to repeat buyers and investors who don't meet the above criteria.

Other states and territories

Northern Territory doesn't currently offer specific off-the-plan concessions, so standard duty applies.

Tasmania previously offered a temporary 50% reduction for contracts signed prior to July 2026 - standard duty now applies for new purchases.

The ACT is gradually moving away from stamp duty altogether, replacing it with an annual rates-based system. Off-the-plan purchases can attract concessions as part of this transition, and duty rates in the ACT are already lower than most other states at comparable price points.

A few things to keep in mind

Stamp duty rules change - sometimes more often than you'd expect! What's current when you read this may look different by the time you sign a contract, so it's always worth getting up-to-date advice from your solicitor or conveyancer before you commit.

A few other things worth knowing:

When you pay matters. In most states, stamp duty is due at or around settlement. In NSW, the deferral means you have more time, but the liability is still there. Factor it into your financial planning early.

Concessions usually require you to apply. They're rarely automatic. Your solicitor or conveyancer handles this as part of the conveyancing process - but make sure they know your situation so they can apply for everything you're entitled to.

Foreign buyers. If you're purchasing as a foreign buyer, additional duty applies in most states on top of the standard rates. The amount varies by state - your solicitor will advise.

Getting advice is genuinely worth it. Stamp duty is one of those areas where a conversation with the right person before you sign can save you a meaningful amount of money. Don't leave it until settlement.

Stamp duty doesn't have to be the scary line item in your budget. In many cases - particularly when you're buying off-the-plan - the concessions available can genuinely change the numbers. The key is knowing what applies to you, in your state, at the time you buy.

Your solicitor, conveyancer, or mortgage broker can help you map it out. And the earlier you ask, the better positioned you'll be.

For more off-the-plan property guides, click here.