Off-the-Plan Duty Concession Extended to 2026: How You Could Save Thousands on Your Next Apartment Purchase
Key Takeaways
The off-the-plan duty concession has been extended until 21 October 2026.
You can save thousands in stamp duty by excluding post-contract construction costs from the dutiable value.
Hi, I’m Wisam Assi, founder and principal lawyer of Optimum Lawyers—a specialist business, commercial and property law firm based in Sydney, servicing clients Australia-wide. If you’re thinking about buying an apartment or townhouse off-the-plan, the latest 2025–26 Budget announcement brings some great news. Let’s dive into what the extension of the off-the-plan duty concession means for you, and how to maximise the benefits while avoiding common legal traps.
What Is the Off-the-Plan Duty Concession?
The off-the-plan duty concession is a valuable benefit available to purchasers of newly built apartments, units, and townhouses—provided they form part of a strata scheme that includes common property.
It allows eligible buyers to pay less land transfer duty (commonly referred to as stamp duty) by excluding the cost of construction incurred after the date of contract from the dutiable value of the property.
“Most buyers don’t realise they’re paying duty on more than just the land—it includes construction costs too. This concession lets you strip out post-contract costs and keep more money in your pocket,” I explain.
This concession is especially useful if you’re buying in a rising property market, where construction costs can push up valuations significantly between contract signing and completion.
For a breakdown of another major reform impacting buyers and sellers, be sure to check out our article on the new seller disclosure regime in Queensland.
What’s New in 2025–26?
As part of the 2025–26 State Budget, the government has announced a 12-month extension to the existing off-the-plan concession, pushing the end date to 21 October 2026. This means more time for eligible buyers to take advantage of duty savings on qualifying properties.
“It’s effectively a government-backed discount for buying early in a development. But you have to meet the timing and eligibility rules,” I advise.
The extension forms part of a broader $61 million housing affordability package aimed at stimulating investment in the apartment and townhouse sector.
Who’s Eligible for the Concession?
To qualify for the off-the-plan duty concession, you must:
- Purchase an apartment, townhouse or unit off-the-plan (before construction is completed);
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Ensure the property is part of a strata subdivision that includes common property;
- Sign the contract before 21 October 2026;
- Ensure the construction has not commenced or is incomplete at the time of contract;
- Be acquiring the property as a home or investment.
“Even investors can qualify, not just first-home buyers. But be careful—timing and documentation are critical,” I caution clients.
It’s also important to ensure your contract clearly separates land value from future construction costs. If not, you could risk missing out on the full concession.
How Does It Work?
Here’s a quick breakdown:
- You sign a contract for an off-the-plan apartment on 1 September 2025.
- The total price is $700,000.
- Of that, $500,000 relates to the land and $200,000 to future construction.
- Only the $500,000 is subject to land transfer duty, saving you thousands.
“Always get the construction component formally valued and disclosed in your contract. That’s what determines your duty discount,” I recommend.
For tailored advice and review of your contract terms, speak to our residential conveyancing team before you sign.
Why This Matters for Off-the-Plan Buyers
This concession is not just a token bonus—it can significantly reduce upfront costs and improve cashflow:
- 🌟 First-home buyers: Add this to other grants and you’ve got a much lower entry cost.
- 📈 Investors: The savings free up capital for other purchases or renovations.
- 🏘 Downsizers: Avoid unnecessary tax on non-land components of your future home.
“Every dollar counts when it comes to stamp duty. If you qualify, don’t leave this concession on the table,” I tell my clients.
Our property law team can help calculate your expected savings and ensure you’re contract-ready to meet all the criteria.
FAQs About the Off-the-Plan Duty Concession
How much can I save with the concession?
It depends on the construction value. For example, excluding $200,000 from dutiable value can save thousands in stamp duty depending on your state’s rates.
What if the property is not part of a strata scheme?
Then it likely does not qualify. The concession only applies where there is common property—such as shared driveways, lifts or lobbies—under a registered plan of subdivision.
Does the property have to be my principal residence?
No. Both owner-occupiers and investors may qualify, provided other criteria are met.
What happens if I sign after 21 October 2026?
You won’t be eligible for the concession unless the government further extends the deadline. Signing before that date is critical.
Can I get this with other grants?
Yes. This concession can work in conjunction with first home buyer grants and other stamp duty exemptions—making your off-the-plan purchase even more affordable.
“Stacking these incentives can make off-the-plan purchases very attractive. But make sure your legal documents are watertight,” I add.
My Final Thoughts and Extra Tips
- Ask for a duty estimate: Before you sign, ask your lawyer for a full breakdown of how much duty you’ll owe with and without the concession.
- Check construction timelines: If too much work is done before contract signing, the concession could be denied.
- Review your sunset clause: Make sure the contract gives you protection if construction is delayed beyond the eligibility period.
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Confirm strata inclusion: Ask your developer or agent to confirm that the property includes common property and is part of a qualifying strata plan.
“The best protection is a properly reviewed contract. We see too many buyers blindsided by technicalities that could’ve been avoided.”
Need Help with Your Off-the-Plan Purchase?
At Optimum Lawyers, we help clients Australia-wide navigate off-the-plan contracts, concessions, and duty savings. If you’re thinking about signing a contract soon, let us make sure your deal stacks up.
Wisam Assi
Founder & Principal Lawyer, Optimum Lawyers
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