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Deciding what to buy

Off-the-plan property

Buying before construction finishes — the real deposit cap, sunset clause, and two genuinely different duty concessions, not assumptions.

Jurisdiction: Duty concessions compared across all 8 states and territories; Victoria's deposit/sunset rules in detail, with NSW, WA and Queensland's equivalents cited — ACT and NT's off-the-plan-specific sunset/deposit protections not yet separately confirmed·Sources last verified: 12 Aug 2026·Written by: Delora editorial team·Last reviewed: 2026-08-28·Change history
Key points
  • The deposit is capped at 10% of the contract price.
  • If the plan of subdivision isn't registered within the contract's sunset period (18 months by default), you can end the contract and get your deposit back.
  • Victoria's permanent off-the-plan duty concession applies only to first-home buyers or a principal place of residence, with specific dutiable-value thresholds.
  • A separate, temporary and much broader concession (currently extended to 21 April 2027) has no first-home-buyer or owner-occupier restriction and no value threshold.
  • Western Australia protects an off-the-plan strata deposit by trust account until the strata plan is registered, and ties the buyer's cancellation right to that same registration deadline — a simpler structure than Victoria and NSW's sunset-clause model.
  • Queensland's 2023 sunset-clause reform only covers off-the-plan land, not apartments or units — a materially narrower scope than Victoria, NSW or WA — and Queensland has no broader off-the-plan duty concession at all.
  • South Australia once had a Victoria-like off-the-plan duty concession, but it hasn't applied to contracts since 1 July 2018.
  • Tasmania's own 50% off-the-plan duty concession has just lapsed for agreements executed after 30 June 2026 — confirm directly with the SRO whether it's been extended.
  • The ACT offers the most generous treatment of any jurisdiction — a full duty exemption with no value cap for contracts from 1 July 2026; the Northern Territory has no off-the-plan-specific duty benefit at all.
  • Your finance and the property's valuation can both change between signing and settlement.

This guide covers Victoria's off-the-plan rules in detail. NSW has a broadly similar sunset-clause protection (28-day notice plus court approval unless the buyer consents) — see the note below. Western Australia takes a simpler approach again: a buyer's cancellation right is tied directly to the strata-plan registration deadline, without VIC/NSW's specific 28-day-notice-plus-court-order protection against a developer misusing the clause — this pass couldn't confirm a WA equivalent of that reverse protection via a primary source (Government of Western Australia (Consumer Protection, part of LGIRS), verified 12 Aug 2026). Queensland has a genuinely narrower scope worth knowing before assuming Victorian-style protection: its 2023 sunset-clause reform only covers off-the-plan land contracts — it explicitly does not extend to community titles schemes such as apartments and units (Queensland Government (Office of Fair Trading), verified 12 Aug 2026). For the ACT and the Northern Territory, this guide covers the duty-concession question in full (see below), but hasn't separately confirmed an off-the-plan-specific sunset-clause or deposit-protection regime distinct from each territory's general deposit rules — see the property deposits guide for what is confirmed generally in the ACT and NT.

Deposit and contract protections

A Victorian off-the-plan contract of sale requires a deposit of no more than 10% of the contract price (Consumer Affairs Victoria, verified 7 Aug 2026), and must carry a warning notice covering the deposit negotiation, the time that may pass before you own the property, and the possibility the property's value changes in that time. Confirm the deposit is held in a genuine trust account for the construction period, not released early to the developer (Arro Lawyers (legal practice commentary), verified 3 Aug 2026) — if it isn't properly held in trust and the developer becomes insolvent before settlement, you risk losing it.

Western Australia's deposit protection works differently again: for an off-the-plan strata purchase, the deposit must go to a solicitor, real estate agent or settlement agent and stay in their trust account until the strata or survey-strata plan is registered with Landgate — the developer can't access it before then unless the contract specifically removes that protection. Deposits are usually no more than 10%, and a buyer can ask in writing for the deposit to earn interest (paid to them) where it exceeds $20,000 or settlement is more than 60 days away (Government of Western Australia (Consumer Protection, part of LGIRS), verified 12 Aug 2026).

Neither the ACT nor the Northern Territory has a confirmed off-the-plan-specific deposit rule distinct from their general property-deposit handling. In the ACT, trust money (including an off-the-plan deposit) must be dealt with only as directed by whoever is entitled to it, with no separate statutory formula for early release (ACT Legislative Assembly (via AustLII consolidated text), verified 12 Aug 2026). In the NT, a deposit is usually held by the agent until the contract settles, placed in trust or (if both parties agree) an interest-bearing account requiring both parties' signatures to withdraw from (AustLII Communities / NT Law Handbook contributors, verified 12 Aug 2026). Confirm whether either territory has since introduced an off-the-plan-specific rule before relying on the general position for a large, delayed construction project.

The sunset clause

If the plan of subdivision isn't registered by the time specified in the contract, or by the default of 18 months, you have the right to end the contract and get your deposit back (Consumer Affairs Victoria, verified 7 Aug 2026). Check your specific contract's sunset date rather than assuming the 18-month default applies. The reverse is also protected: since 23 August 2018, a developer can't use a sunset clause to cancel your contract and re-sell at a higher price without your written consent — they must give you at least 28 days' written notice explaining the delay, and without your consent, need a Supreme Court order, which weighs factors including whether they acted unreasonably or in bad faith (Maddocks Lawyers (legal practice commentary), verified 3 Aug 2026). NSW has a genuinely similar protection — a vendor there also needs 28 days' written notice and either the buyer's consent or a Supreme Court order applying a 'just and equitable' test — the two states converged on comparable reforms around the same period (2015-2018) (LegalVision (law firm, summarising Conveyancing Act 1919 (NSW) s66ZL-66ZS), verified 12 Aug 2026). Queensland's Land Sales Act 1984 works differently, and only for off-the-plan land: the seller must settle within 18 months of the contract (a buyer can terminate with written notice if they don't), and since 22 November 2023 a seller can only use a sunset clause to terminate early with the buyer's written consent, a Supreme Court order, or a prescribed regulation — but this protection explicitly excludes community titles schemes (apartments and units), a materially narrower scope than Victoria, NSW or WA (Queensland Government (Office of Fair Trading), verified 12 Aug 2026) (Queensland Government (Office of Fair Trading), verified 12 Aug 2026). Queensland also gives a buyer a separate right to terminate for "material prejudice" — a significant disadvantage from an undisclosed change, such as a materially reduced lot size — within 30 days of notification or before title transfers, whichever is sooner (Queensland Government (Office of Fair Trading), verified 12 Aug 2026). None of this replaces checking the developer itself before you sign — see checking a builder or developer before you sign.

Two separate duty concessions — don't confuse them

Victoria has two distinct off-the-plan duty benefits, and conflating them is a genuine, costly mistake. First, a permanent concession that applies only to a principal place of residence or first-home buyers (Consumer Affairs Victoria, verified 29 Jul 2026): full exemption for first-home buyers with a dutiable value of $600,000 or less; a concession for first-home buyers between $600,001 and $750,000; and a concession for any principal-place-of-residence buyer at $550,000 or less. This one has existed since 1 July 2017 and has no expiry date.

Second, a temporary, much broader concession for eligible off-the-plan apartment and townhouse purchases within a strata subdivision (State Revenue Office Victoria, verified 29 Jul 2026) — currently extended to contracts entered into up to and including 21 April 2027. Unlike the permanent concession above, this one is not restricted to first-home buyers or owner-occupiers, and has no property-value threshold — it can potentially apply to investors, companies and trusts too. See the dedicated off-the-plan duty concession guide on the Prepare Financially hub for full detail, since this benefit has been extended more than once and its exact terms are worth confirming directly with the SRO before relying on it. Queensland has no equivalent broader off-the-plan concession at all — checked directly against the QRO's own concessions index, an off-the-plan purchase there only qualifies for the ordinary home or first-home concession, on the same terms as an established property (Queensland Revenue Office, verified 12 Aug 2026). South Australia once had a broadly similar scheme to Victoria's, but RevenueSA's own page confirms it doesn't apply to contracts entered into on or after 1 July 2018 — a South Australian off-the-plan purchase today gets no equivalent benefit (Government of South Australia (RevenueSA), verified 12 Aug 2026). Tasmania had a 50% off-the-plan duty concession of its own, but the SRO's current page states it isn't available for agreements executed after 30 June 2026 — that's only just lapsed, so confirm directly with the SRO whether it's been extended before assuming it's gone (State Revenue Office of Tasmania (Department of Treasury and Finance), verified 12 Aug 2026). The ACT is the most generous jurisdiction of all: its Off the Plan Unit Duty Exemption is a full exemption, not a partial concession, for individual owner-occupiers buying an eligible off-the-plan apartment or townhouse — and for contracts exchanged from 1 July 2026 there's no property-value threshold at all. You must live in the home for at least a year starting within 12 months of settlement, or full duty (plus possible penalty tax) becomes payable (ACT Revenue Office, verified 12 Aug 2026). The Northern Territory has no off-the-plan-specific duty benefit at all — checked directly against its own list of common duty exemptions and concessions (Northern Territory Government (Territory Revenue Office), verified 12 Aug 2026).

The concession amount under either scheme depends on how advanced construction is when the contract is signed — the closer to completion, the higher the duty is likely to be.

Common mistake: assuming that not being a first-home buyer or owner-occupier automatically rules out any off-the-plan duty benefit. The temporary broader concession above has no such restriction — check both concessions separately before assuming neither applies to you.
Common mistake: treating the finance and price locked in at signing as final. Between contract and settlement — often years for a large development — your finances, interest rates and the property's valuation at completion can all change; see the off-the-plan finance guide in the financial preparation hub.

Practical checklist

Before signing an off-the-plan contract

  • Check the specific sunset date in your contract
  • Confirm your eligibility against the permanent first-home-buyer/PPR duty concession
  • Separately check whether the temporary, broader off-the-plan concession applies — it has no first-home-buyer or value restriction
  • Ask what happens to your finance approval if settlement is delayed
  • Get legal advice on the contract's variation and disclosure clauses

Relevant Delora tool

Read the full off-the-plan duty concession guide →

Questions for a professional

  • What is this contract's specific sunset date, and what are my rights if it's missed?
  • Am I eligible for either the permanent or the temporary off-the-plan duty concession on this purchase?

Official resources

Important limitations: This is general education, not legal advice on any specific off-the-plan contract. The temporary duty concession's expiry date has changed before and may change again. The NSW sunset-clause comparison relies on a secondary legal-industry source, not a direct primary-source check, since austlii.edu.au blocks automated access. This pass could not confirm whether WA has a developer-side anti-abuse sunset protection comparable to VIC/NSW's 28-day-notice-plus-court-order rule via a primary source — not claimed here. Queensland's sunset-clause protection covers land only, not apartments or units, and Queensland has no broader off-the-plan duty concession at all. South Australia's own off-the-plan duty concession has been checked and confirmed to have not applied since 1 July 2018; Tasmania's own concession has only just lapsed (not available for agreements after 30 June 2026) — confirm directly with the SRO before assuming it's gone for good. The ACT's and NT's duty position is fully researched, but neither territory's off-the-plan-specific sunset-clause or deposit-protection regime (distinct from their general deposit rules) has been separately confirmed.

Sources and methodology

Figures on this page are drawn from Delora's local knowledge graph, refreshed from these primary sources and checked for changes on a regular schedule. If a figure here looks out of date, the official source above is always the authority — please let us know.

Evidence record
Written by
Delora editorial team
Jurisdiction
Duty concessions compared across all 8 states and territories; Victoria's deposit/sunset rules in detail, with NSW, WA and Queensland's equivalents cited — ACT and NT's off-the-plan-specific sunset/deposit protections not yet separately confirmed
Content type
Guide (general education, not financial advice)
Last reviewed
2026-08-04
Sources
See "Sources and methodology" above for cited sources
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