A capital gain is capital proceeds less cost base. Where both come from arm's length contracts, no valuation is needed. These are the situations where one of those numbers has to be established instead.
Each of these is covered on our capital gains tax valuation page. The pattern across all five: the date that matters is fixed by the event, not by when you get around to dealing with it. Valuations for past dates are entirely normal, which is the point of a retrospective valuation. They are simply harder and thinner the longer you wait.
From 1 July 2027, for individuals, trusts and partnerships, the 50 per cent CGT discount is replaced by CPI cost base indexation together with a 30 per cent minimum tax on net capital gains. This is law: the Treasury Laws Amendment (Tax Reform No. 1) Act 2026 received Royal Assent on 26 June 2026.
Assets held across the date are treated as sold and reacquired at market value on 1 July 2027, so the gain splits. Everything to that date keeps the old treatment, including the discount. Everything after uses indexation and the 30 per cent floor. You can either establish the split with a valuation, or elect the apportioning method under subsections 112-155(3) and 112-165(3), which applies one compounding daily growth rate across the whole ownership period instead of the actual value.
Treasury released that formula as an exposure draft on 3 August 2026, and the calculator on this site prices the two against each other. What is already true is that the apportionment formula assumes your property compounded at one steady daily rate, worked from the purchase price alone, and most investment properties did not grow that way. Detail on the 1 July 2027 valuation page.
Note
Your home is not affectedThe main residence exemption is unchanged by the reform. A home that is fully exempt stays fully exempt. The transition only matters for property that is taxable, in whole or in part, which includes a former home you have rented out beyond the six-year window.
There is no register of ATO-approved valuers. What the ATO assesses is whether the figure is objective and supportable, and it treats a valuation by a qualified professional valuer as more credible than an estimate from someone without those qualifications.
| Source | What it is | Suitable for CGT? |
|---|---|---|
| Certified Property Valuer report | Independent market value with comparable sales, method and reasoning documented | Yes |
| Real estate agent appraisal | A marketing estimate of likely selling price | No |
| Bank valuation | A lender's risk assessment, deliberately conservative | No |
| Online estimate | An algorithm applied to today's market, with no reasoning | No |
The distinction matters most when the figure is challenged. Under section 284-90 of Schedule 1 to the Taxation Administration Act 1953, shortfall penalties run at 25 per cent for failure to take reasonable care, 50 per cent for recklessness and 75 per cent for intentional disregard. Getting a proper valuation is what supports a reasonable care position.
| Report | Fee (AUD inc. GST) | Turnaround |
|---|---|---|
| Residential, current or retrospective | $297 | 24 to 48 hours |
| Commercial, current or retrospective | $595 | 24 to 48 hours |
Fixed fee quoted upfront, no variation once scope is agreed, report addressed and billed to you or your accountant. See the process page for what happens after you order.
Whenever the CGT calculation depends on a market value rather than a contract price. In practice that means converting a home to a rental, transferring to a related party or trust, inheriting, separating, and holding a taxable property across 1 July 2027. A straightforward arm's length purchase and sale usually needs no valuation at all.
No. An agent appraisal is a marketing estimate rather than an assessment of market value, and it carries little weight if the ATO reviews the figure. The report needs documented comparable sales, a stated method and reasoning that a third party can follow.
A retrospective valuation establishes the market value as at that date using sales evidence from the period. It is a normal and accepted approach, it costs the same as a current valuation with us, and it is the document that supports the section 118-192 reset in your return.
Only for those where a value at a specific date affects the tax. For the 1 July 2027 transition that means every taxable property you hold across the date, since each one is measured separately. A fully exempt main residence is not affected.
