Victorian Budget 2025-26: A Glimmer of Hope for Off-the-Plan Buyers Amidst a Sea of Fiscal Pain

For most Victorians, the State Budget 2025-26 delivered today feels like a punch to the gut. Unless you happen to be in the market for an off-the-plan apartment, unit, or townhouse, the news emanating from Treasury is overwhelmingly negative, marked by rising costs and increased financial burdens.

Let's not sugarcoat it: this budget appears to be squeezing everyday Victorians and property owners who aren't specifically targeting newly constructed strata-titled properties. While the headlines might tout a return to surplus, the devil is in the details, and those details paint a concerning picture for many.

The Crushing Blow of the "Emergency Services Levy Hike" (Let's Call a Spade a Spade)

Forget the fancy new name – the Emergency Services and Volunteers Fund (ESVF), formerly the Fire Services Property Levy, is set to skyrocket from July 1, 2025. This isn't a minor adjustment; it's a substantial increase that will hit homeowners, commercial property owners, industrial landholders, and even primary producers hard.

Residential property owners face a near doubling of the variable rate, meaning hundreds of dollars more on their council rates. Commercial and industrial property owners are staring down the barrel of increases exceeding 60% and even 100% in some cases. And for our farmers? A truly staggering hike awaits. This isn't just a levy; it's a significant new cost of holding property in Victoria.

Roads in Disrepair, Services Strained – Where's the Relief?

While nearly a billion dollars has been allocated to road repairs, the admission that only half of the previous year's planned works were achieved raises serious questions about the effectiveness of this spending. Victorians are already battling pot-holed roads and congested commutes – will this budget truly deliver tangible improvements, or is it simply playing catch-up?

Beyond roads, many sectors appear to be left wanting. The lack of new operational funding for the SES is a worrying sign for community safety. And while there's talk of healthcare investment, the immediate cost-of-living pressures facing families seem to have taken a backseat.

The One Sliver of Light: A Reprieve for Off-the-Plan Purchasers

In an otherwise bleak landscape, there is a single, albeit targeted, ray of sunshine. The extension of the stamp duty concession for off-the-plan apartments, units, and townhouses until October 2026 offers a genuine financial advantage for those looking to buy this specific type of property.

With the potential for tens of thousands of dollars in savings, this measure could indeed make the dream of homeownership more attainable for some. It's a clear incentive to buy new, strata-titled dwellings, and for those already considering this option, the budget offers a welcome reprieve from a significant upfront cost.

But is this enough?

While the off-the-plan stamp duty concession is undoubtedly good news for a specific segment of the market, it does little to alleviate the growing financial pressures on existing homeowners, businesses, and the broader community. The substantial increases to the emergency services levy will be felt across the board, negating any perceived surplus for many.

The Verdict:

Unless you're actively planning to purchase an off-the-plan apartment, unit, or townhouse in the next year and a half, the Victorian State Budget 2025-26 appears to offer little in the way of positive news. For the majority of property owners and residents, it signals increased costs and continued challenges. The one bright spot for off-the-plan buyers feels somewhat isolated in an otherwise gloomy fiscal outlook. It remains to be seen whether this targeted measure can truly stimulate the housing market while the broader economic concerns continue to mount.