Updated 11 October 2026
Every individual or trust client who holds a CGT asset at the end of 30 June 2027 will need a value for that date when they sell. For many property clients Treasury's formula will do. For clients with large pre-2027 gains, uneven growth or renovated property, an independent valuation changes the tax. This checklist sorts one group from the other.
At a glance
- The reset applies to CGT assets held by individuals and trusts at the end of 30 June 2027, not only property.
- The value at that date splits the gain between the 50 per cent discount rules and the new indexation rules.
- A valuation can be ordered before, on or after the date. A retrospective report establishes the value later.
- Clients with high pre-reset growth, renovations or below-market purchases are the ones to triage first.
- The report must state the valuation date, the method, the comparable evidence and the valuer's credentials.
In this guide
Download this checklist as a one-page PDF. The kit also includes a client letter template and a one-page client explainer.
Which clients to triage first
The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 treats affected assets as sold and reacquired at the end of 30 June 2027. The value at that moment can come from a market valuation or from Treasury's apportioning formula, which compounds one daily growth rate from the purchase price to the sale price. The formula is blind to when growth happened and to anything other than the purchase price, and that is where the triage starts.
| Client situation | What the formula does | Action |
|---|---|---|
| Long-held investment property in a suburb that grew early then flattened | Pushes growth into the later years, so it understates the reset value | Valuation likely to help. Triage first. |
| Property renovated or extended before 1 July 2027 | Uses the first element of the cost base only, so the uplift from improvements is ignored | Valuation likely to help. |
| Property acquired below market value: related party, deceased estate or off-market | Starts from a low purchase price and spreads the catch-up evenly | Run both figures. Check the cost base first. |
| Property bought in the last two years at a market peak | Little pre-reset growth either way | Formula often adequate. Run the calculator. |
| Commercial property with a lease change before the date | Cannot see a step change in value | Valuation likely to help. |
| Pre-CGT asset, acquired before 20 September 1985 | The reset value becomes the cost base for all later growth | Valuation strongly indicated. |
| Property held in an SMSF | Complying funds keep the one-third discount and sit outside this change | No reset valuation. Annual fund valuations continue. |
Pre-1985 owners are covered on our pre-CGT valuation page. SMSF property is valued each year for the fund's accounts in any case, which is handled by our sister service, SMSF Property Valuations.
When to order
There are three windows, and the report is the same in each.
- Pre-order now. Residential reports can be pre-ordered now at $297 and are prepared in the first week of July 2027, once sales evidence around the date is available.
- On or shortly after the date. Ordered from 1 July 2027, reports are delivered in 24 to 48 hours.
- Retrospectively. The value can be established years later, when the client is preparing to sell. Evidence is easiest to assemble close to the date, so later is possible but not better.
The service is set out on the 1 July 2027 valuation page, and later-dated work on the retrospective property valuation page.
What the report must contain
A report that will sit behind a figure in a tax return should show:
- the valuation date, stated as the end of 30 June 2027;
- the property description and its condition at that date;
- the method used;
- the documented comparable sales evidence relied on;
- the valuer's credentials and certification;
- a statement that it is prepared for capital gains tax purposes.
Warning
A figure in the workpapers is not a valuationAn agent's appraisal, an automated estimate or a number agreed with the client does not meet the standard. If the reset value is ever reviewed, the report is the first document asked for.
The ATO's expectations are in its guidance on market valuation for tax purposes.
Fixed-fee 1 July 2027 reports for your clients
Residential $297, commercial $595, AUD inc. GST. Prepared from documented comparable sales evidence and delivered in 24 to 48 hours.
Start your orderHow it worksRun both numbers
For every triaged client, compute the formula figure and the valuation figure and keep both on file. The choice between them is made when the gain is reported, so the comparison can be finalised in the sale year. Our 1 July 2027 CGT calculator runs the formula on the client's own purchase date and price.
Note
Worked exampleA house is bought for $600,000 on 1 July 2017 and sold for $1,000,000 on 30 June 2030. The formula compounds the growth over 4,748 days of ownership and applies it to the 3,652 days up to the reset, giving a deemed value of about $888,800. About $288,800 of the $400,000 gain keeps the discount and about $111,200 does not. If a valuation shows $950,000 at the reset date, $350,000 keeps the discount and $50,000 does not. Acquisition and selling costs are left out to keep the arithmetic clear.
Treasury released the formula as an exposure draft on 3 August 2026. As drafted it is available for real property and for assets without a readily ascertainable market value. It is not yet registered, so re-check it before relying on a formula figure in advice.
Build it into the engagement
The reset is a client-list exercise. Pull the list of individual and trust clients holding property, sort it with the table above, and stage the valuations through 2027 so they are not compressed into the weeks around 30 June.
For advisers
Engagement letter noteAdd the 1 July 2027 valuation decision to FY2027 engagement scopes, so that the choice to obtain a valuation, or to rely on the formula, is documented for each affected client.
How we work with practices, including ordering on behalf of clients, is set out on the page for accountants and tax agents. The reform itself is summarised on CGT changes in Australia.
Firm-branded ordering
Accounting firms can offer 1 July 2027, CGT and retrospective valuations under their own brand. Clients order through a page carrying your firm's name. Every report is still prepared and signed by the valuer as an independent report. See firm-branded ordering to enquire.
Common questions
Does every client need a valuation?
No. Every affected client needs a value at the end of 30 June 2027, but the formula can supply it for real property. A valuation earns its fee where growth was uneven, the property was improved, it was bought below market, or it is a pre-CGT asset.
Can the valuation be ordered after 1 July 2027?
Yes. A retrospective valuation establishes the value at the end of 30 June 2027 at any later time, from sales evidence around that date. The choice between valuation and formula is made at sale, but the evidence is strongest when gathered close to the reset.
What does a 1 July 2027 valuation cost?
Residential reports are $297 and commercial reports are $595, AUD including GST. Reports are delivered in 24 to 48 hours, and pre-ordered reports are prepared in the first week of July 2027.
Does the reset apply to shares and other assets?
Yes. The deemed sale and reacquisition applies to CGT assets held by individuals and trusts, including shares. As drafted, the formula is not available for assets with a readily ascertainable market value, such as listed shares, so those use the market price at the reset date.
Can our firm order on behalf of clients?
Yes. A practice can order for a client by supplying the property address, the valuation date and what the property was like at that date. The report can be addressed to your firm, to the client or to both, and billed to whichever you prefer.
Sources
- Treasury Laws Amendment (Tax Reform No. 1) Act 2026, Federal Register of Legislation
- ATO, Tax reform: reforming negative gearing and capital gains tax
- Treasury, Capital gains tax and negative gearing consultation, including the CGT apportioning method exposure draft
- ATO, Market valuation for tax purposes
