Updated 2 October 2026: The valuation date discussed here is 30 June 2027, immediately before the rules change on 1 July 2027. The original article URL has been retained. See CGT 2027 valuations.
If you own an investment property, 30 June 2027 may be a relevant valuation date. You can prepare now by confirming the requirements with your tax adviser and planning to retain records at that date. The valuation itself cannot be finalised before that future date.
The CGT changes apply to relevant events from 1 July 2027. For eligible assets held across the transition, market value immediately before that date can be relevant. Ask your registered tax adviser whether a valuation at 30 June 2027 is appropriate and which transitional method applies to your circumstances.
There are two ways of approaching that question. One is to establish and document the property’s market value at the relevant time. The other is to wait several years and ask someone to reconstruct it retrospectively. Both are possible, but only one of them involves a time machine, and unfortunately, valuers don’t have those.
Why would I need a 30 June 2027 CGT valuation?
The transitional rules provide different treatments depending on the asset and taxpayer. A valuation may be one way to support the calculation, but not every property owner is required to commission one.
Your accountant or tax adviser should determine whether the valuation method is appropriate for your circumstances. But if market value is the method being used, the next question is straightforward: what was the property actually worth? That is where an independent property valuation comes in.
A simple example
Suppose an investor purchases a residential investment property in 2016 for $520,000. By 30 June 2027, assume the property has increased in value to $900,000. The owner retains it and eventually sells in 2035 for $1,250,000. The property has therefore increased substantially in value both before and after 30 June 2027, so suddenly the important numbers aren’t simply $520,000 and $1.25 million. The $900,000 in the middle may matter as well.
The accountant determines the CGT treatment. The valuer provides the independent assessment of what the property was worth at the relevant date. Two different jobs, both important.
Can I get a retrospective 30 June 2027 CGT valuation later?
You can obtain retrospective property valuations, and we undertake them. But imagine it’s now 2035 and you need to establish the market value of your property eight years earlier. What condition was it in on 30 June 2027? Was the kitchen renovated before or after that date? Had the extension been completed? Was the secondary dwelling there? What improvements had been undertaken, and which comparable properties were selling around the relevant date?
There may be sufficient historical evidence available to establish a retrospective market value, but time rarely improves the evidence. If you know a valuation date may become important, there is an obvious advantage in documenting the property and its market value while that date is still current.
“Can’t the ATO just use a formula?”
Alternative transitional calculations may be available. Your tax adviser should compare the permitted methods and confirm whether a valuation is needed.
A formula applies a prescribed methodology. A property valuation assesses the actual property, and actual properties have an inconvenient habit of being different from one another. Two four-bedroom houses on similar-sized blocks in the same suburb can have materially different values: one may have been extensively renovated, have superior garaging or additional accommodation, or have development potential, while the other backs onto a major arterial road instead of a reserve. Same suburb, similar statistics, not necessarily the same value.
Long-held properties deserve particular attention
Long-held properties and pre-CGT assets need specific advice. The legislation contains separate transitional rules for pre-CGT assets. Do not assume all gains on every property become taxable in the same way. Ask your tax adviser to confirm how the rules apply.
If you bought an investment property years or decades ago and intend to continue holding it beyond 30 June 2027, it is worth speaking with your accountant or tax adviser about the transitional CGT arrangements. Don’t wait until the eventual sale to discover that a historical market value would have been useful.
What should I do before the 30 June 2027 CGT valuation date?
If you own property that may be subject to CGT, speak with your accountant or tax adviser and ask:
1. Will the 30 June 2027 market value of my property be relevant to my future CGT position?
2. Should I obtain an independent valuation or use the alternative apportionment method?
3. What property and taxation records should I retain?
If a valuation is appropriate, Vanguard Valuations can provide an independent assessment of market value at the required date, supported by relevant property and market evidence.
Don’t leave a 2027 question until 2037
CGT may not become payable until an asset is eventually sold, but the evidence used to determine it can relate to a date many years earlier. That distinction matters.
Keep dated photographs, plans, renovation records and tenancy information around 30 June 2027. A report assessing value at that date can only be finalised after the date, once relevant evidence is available. A booking now is not a completed future-date valuation.
Speak with your accountant or tax adviser about whether a valuation is appropriate for your circumstances. If the answer is yes, Vanguard Valuations can assist with an independent 30 June 2027 CGT valuation. You can read more about our capital gains tax valuation services.
This article contains general information only and does not constitute taxation, legal or financial advice. The CGT reforms and transitional arrangements should be considered in conjunction with the legislation and current ATO guidance. Property owners should obtain advice from an appropriately qualified tax adviser regarding their individual circumstances.
Sources and further reading
General information only. Obtain advice about your circumstances from your accountant, solicitor or other appropriately qualified adviser.