A CGT valuation establishes a property’s market value at the date a capital gains tax rule needs it. If the value is wrong — or unsupported — the tax outcome can be challenged years later, when good evidence is hardest to find. A well-supported value is also what stops the cost base being set too low, and the gain, and the tax, being overstated.
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When a CGT property valuation is needed#
- The 1 July 2027 cost base reset. Property held on 30 June 2027 (individuals, trusts, partnerships) is treated as sold just before 1 July 2027 at its market value at the end of 30 June 2027, and reacquired on 1 July 2027 for that amount under the 2026 reform, now law (Treasury Laws Amendment (Tax Reform No. 1) Act 2026). Establishing that value is a choice: you can either obtain a market valuation as at the end of 30 June 2027, or use the Treasurer’s apportioning method (a formula set by legislative instrument under s 112-185, still an exposure draft). A dated valuation is the cleanest evidence of the new cost base, but it is not the only route — reserve a 1 July 2027 valuation through our specialist CGT service, which prices reset valuations separately.
- Your home starts earning income. When a main residence first becomes a rental, the cost base can reset to market value at that date.
- Inherited property. Market value at the date of death often sets the beneficiary’s cost base — see deceased estate valuations.
- Gifts and related-party transfers. Transfers between family members or related entities are generally assessed at market value, not the price paid.
- A past date you missed. A retrospective valuation can establish market value at a date that has already passed.
The ATO assesses the process, not just the figure#
The ATO asks for a market value that is objective and supportable (market valuation of assets). Its valuation guide says a report by a suitably qualified professional, following accepted industry standards, generally contains enough evidence and reasoning for the value to be tested or replicated, and is considered more reliable. So the question a reviewer asks is not “is this the right number?” but “can I follow how it was reached?”.
These are common, and on their own each is easy to challenge:
| Evidence | Why it is weak on its own |
|---|---|
| A selling agent’s appraisal | Prepared to win a listing, not to evidence value. It is not a valuation. |
| An online automated estimate | A model’s output with no valuer behind it. The Australian Property Institute calls it “not a valuation product”. |
| A council rates or land tax valuation | Values land for rating, on its own basis and date, not the property’s market value. |
| An insurance replacement figure | The cost to rebuild, not what the property would sell for. |
| A neighbour’s sale price | One sale, without adjusting for the differences, is not an analysis. |
| Today’s value discounted by a market index | A general index, not this property at that date. |
Each signed report is prepared by a qualified valuer to an ATO-acceptable standard. There is no “ATO-approved” valuation; no such status exists.
What a signed CGT valuation report contains#
The ATO’s guidance says a valuation report should contain at least:
- the purpose of the valuation and its scope;
- details of the property being valued;
- the date it was conducted, and whether it is a retrospective assessment;
- the date of inspection, if there was one;
- records that explain the basis of the market value;
- the value.
A signed report also sets out the valuer’s qualifications and independence, the comparable sales relied on and how each was adjusted, and the assumptions and limitations, so that your accountant, and if it comes to it a reviewer at the ATO, can follow it without asking.
Desktop or on-site?#
A CGT figure can be tested by the ATO years later, so an on-site valuation (from $646) — a full inspection, inside and out — is what we recommend. A desktop assessment (from $279) involves no inspection, so it cannot see condition or improvements and is not a full valuation; it suits lower-stakes purposes such as updating an earlier report. See the full comparison of desktop vs on-site valuations, or tell us the purpose and we’ll recommend the right pathway with a fixed price.
Common questions#
Do I need a valuation every time I sell?
Can I use my council or land tax valuation?
How long should I keep the report?
What date should the valuation be as at?
Will the ATO accept the report?
What does it cost?
Related guides: retrospective valuations · desktop vs on-site · deceased estates.
General information only — not tax, financial or legal advice. The signed valuation is provided by a qualified valuer.