Buying off-the-plan

Buying off the plan is when you enter into a contract or transfer to buy residential property where the home is to be erected or developed before the contract or transfer is completed.

A contract for the sale of vacant land is not eligible for off the plan.

If you buy a home off-the-plan which you intend to use as your main residence, you can defer your transfer duty liability for up to

• 12 months after you sign the agreement, or
• until the property is completed or handed over, whichever comes first.

How to apply

You make your request when completing the mandatory purchaser/transferee declaration (for an individual or for a trust or company) which collects information to determine your eligibility for the duty deferral.

Who is eligible

From July 2016 all purchasers and transferees must be non-foreign meaning you are considered one of the following:

• Australian Citizen
• a New Zealand Citizen holding a subclass 444 visa or
• a permanent resident and you’ve lived in Australia more than 200 days in the last 12 months.

From July 2017 investors are not eligible.

Requirements for living in the property

At least one purchaser or transferee must occupy the property as their main residence.

• The person occupying the property must live in the property for a continuous period of 6 months starting within 12 months from becoming the owner (this is referred to as the residence requirement).
• By completing the purchaser/transferee declaration you are completing a statutory declaration confirming you will meet the requirements as mentioned in the explanatory notes to the declaration.

Changes in living arrangements

If you do not meet the residence requirement, you will be liable to duty as if the deferral did not apply. You will also need to pay interest for the period after three months from the date of the contract and penalty tax may apply.

Contact us

If you could not find answers on this website to questions about buying off-the-plan and how to apply, contact us.