What are the July 2027 CGT changes I keep hearing about?

The 2026-27 Federal Budget replaces the long-standing 50% CGT discount with two new rules from 1 July 2027: (1) a cost-base indexation system similar to the pre-1999 regime, and (2) a minimum 30% tax on capital gains. A transitional regime applies to assets held before 1 July 2027 and sold after — that's what makes a 1 July 2027 valuation so important for apportioning the gain correctly between the two regimes.

Why will most property investors need a valuation dated 1 July 2027?

Under the transitional rules, the gain on assets held across 1 July 2027 must be apportioned between the period before (taxed under the existing 50% discount) and the period after (taxed under the new indexation and minimum-rate rules). A contemporaneous market valuation at 1 July 2027 is the most defensible way to support that apportionment in your tax return, and the strongest evidence to hold if the ATO ever queries the figure used.

Can I get a 1 July 2027 valuation now (before that date)?

Yes. A valuation as at a future effective date is unusual but the methodology is the same — the valuer uses the most current market evidence available at the date of inspection and projects the value at the effective date. Closer to 1 July 2027 the valuation will be most defensible; we recommend scheduling between May and August 2027 for the cleanest evidence base.

What is a pre-CGT (pre-1985) valuation?

Capital Gains Tax was introduced in Australia on 20 September 1985. Properties acquired before that date are 'pre-CGT' and have a special cost base. If a pre-CGT property changes status (e.g. moves from main residence to rental, or is inherited and then sold), a retrospective valuation as at 20 September 1985 establishes the cost base for future CGT calculations.

What if my property was inherited?

When you inherit a property, the cost base for CGT purposes is generally the market value at the deceased's date of death (with some exceptions for properties that were the deceased's main residence). A retrospective valuation as at the date of death establishes this cost base. We routinely prepare these for executors and beneficiaries.

What if I moved into (or out of) my investment property?

Changing a property's use between main residence and investment triggers a 'change of purpose' event. The market value at the date of the change becomes a key reference point for the CGT cost base. We provide change-of-purpose valuations for both directions — moving in (acquiring main residence status) and moving out (starting to use as investment).

Does the ATO require a professional valuation?

The ATO accepts a range of valuation evidence depending on the asset and the context. For CGT cost-base purposes, however, the most defensible position — particularly where the figure could be challenged on audit — is an independent market valuation prepared to a recognised professional standard. Our reports are prepared to the RICS Red Book Global Standards 2025 and signed by a Chartered Valuation Surveyor, which provides the strongest evidentiary support for the value used in your return.

How much does a CGT property valuation cost?

Fees depend on property type, location, complexity, and the date for which the valuation is required. Retrospective valuations for dates many years in the past (e.g. pre-1985) require additional archival research. Request a quote and we will come back with a fixed fee within one business day.

How long does the valuation take?

Current-date and 1 July 2027 valuations are typically delivered within 5 business days of inspection. Retrospective valuations for older dates require additional research and take 7 to 10 business days. Priority turnaround is available for time-sensitive matters such as ATO audit deadlines.

How far back can you do a retrospective valuation?

Any historical date, including pre-CGT (pre-1985) and earlier. Our valuers use historical sales records, council and rate records, building permit records, archival aerial photography, and published building cost indices. The older the date, the more archival research is needed but the methodology remains rigorous and defensible.

Are 'new builds' treated differently under the new rules?

Yes. Investors in new builds will be able to choose between the existing 50% CGT discount or the new indexation system, even after 1 July 2027. This is intended to preserve incentives for housing supply. A valuation is still required when the property is later sold to establish the chosen cost-base treatment.

How will pensioners and low-income earners be treated under the new rules?

The Budget proposal expressly exempts recipients of means-tested income support payments — such as the Age Pension or JobSeeker — from the 30% minimum tax for any financial year in which they receive a payment (Treasury factsheet, page 2). The indexation regime still applies, so a CGT valuation may still be useful to establish the indexed cost base regardless of your tax position. Speak to your accountant for a position specific to your circumstances.

We're transferring property between family members — do we need a CGT valuation?

Yes. Transfers between family or related parties are 'non-arm's length' and the ATO substitutes market value for the actual consideration. An independent valuation is the most defensible way to evidence that value and avoid the figure being re-determined by the ATO on audit. See also our dedicated page on Related Party Transfer Valuation.

Will the valuation report hold up if the ATO audits me?

Our reports are RICS Red Book compliant, signed by a Chartered Valuation Surveyor, and include the methodology, comparable evidence, and reasoning behind every value conclusion. The combination of independent qualification, recognised methodology, and a clear audit trail is the strongest evidentiary position to take if the ATO ever queries the cost base used in your tax return.

Capital Gains Tax (CGT) Property Valuation Australia

RICS-certified CGT valuations across Australia — current date, retrospective, and the 1 July 2027 valuation most property investors will soon need.

Get a CGT Quote Call 02 6185 4477

Effective 1 July 2027

The new CGT rules will change how every Australian property investor calculates capital gains.

The 2026-27 Federal Budget replaces the 50% CGT discount with cost-base indexation and introduces a minimum 30% tax on capital gains. Properties held before 1 July 2027 and sold after will be taxed under a transitional regime that apportions the gain between the old and new rules — and a contemporaneous market valuation at 1 July 2027 is the most defensible way to support that apportionment in your return. realestate.com.au put the warning in plain English in May 2026.

What's changing

The CGT regime, before and after 1 July 2027.

All claims below are anchored to the Treasury “Negative Gearing and Capital Gains Tax Reform” factsheet published with the 2026-27 Federal Budget (12 May 2026). The reform is announced but no bill has yet been introduced into Parliament — it remains subject to passage of legislation. Commencement is proposed for 1 July 2027.

Before

50% CGT discount for assets held > 12 months

From 1 July 2027

Cost-base indexation (similar to the pre-1999 system) for assets held ≥ 12 months

Before

Gains taxed at marginal rate after the discount

From 1 July 2027

A minimum 30% tax on the resulting capital gain (applied as a floor on the marginal-rate calculation)

Before

Single regime for all property investors

From 1 July 2027

New builds keep an opt-in to the 50% discount; affordable housing keeps its 60% discount; means-tested income-support recipients (Age Pension, JobSeeker) are exempt from the 30% minimum; superannuation funds (incl. SMSFs) are excluded from the reform entirely

Before

No reset event in 2027

From 1 July 2027

1 July 2027 acts as a reset: gains split into pre/post-2027 portions, each taxed under its respective regime

The key event

Why most property investors will need a 1 July 2027 valuation.

The transitional regime introduced by the 2026-27 Budget apportions the gain on any asset held across 1 July 2027 into two parts: the portion accrued before, taxed under the existing 50% discount regime; and the portion accrued after, taxed under the new indexation and minimum-rate rules.

To support that apportionment in your tax return, you need a market value of the property as at 1 July 2027. Without contemporaneous evidence, you'll be relying on a back-dated estimate at the time of sale — usually less defensible if the figure is queried, and harder to substantiate the further the sale is from the reset date.

A RICS-certified valuation prepared contemporaneously with the reset date is the strongest evidence you can hold. It locks in the market value at 1 July 2027 with comparable sales gathered while the data is still fresh, sealing the apportionment for whenever you eventually sell.

About this service

What is a Capital Gains Tax valuation?

A Capital Gains Tax (CGT) valuation establishes the market value of a property at a specific date for the purpose of calculating capital gains tax liability. It is required whenever the price actually paid for a property does not reflect its market value, or whenever a tax event occurs at a date for which a value must be established.

The Australian Taxation Office requires that CGT cost-base valuations be prepared by a qualified, independent valuer using recognised methodology. At Landmark Valuations, our CGT valuations are prepared in accordance with RICS Red Book Global Standards 2025, which the ATO accepts as meeting the requirements for professional independence and methodological rigour.

We prepare three categories of CGT valuation: current-date valuations (for sales completing now), retrospective valuations (for dates in the past — inheritance, change of use, pre-CGT), and 1 July 2027 valuations (for the new transitional regime).

When you need one

Six scenarios that trigger a CGT valuation.

NEW

1 July 2027 transitional valuation

Property held before the new rules take effect? You'll need a market value at the cut-off date to split your gain between the old (50% discount) and new (indexation + 30% min tax) regimes.

Pre-CGT (pre 20 September 1985)

Properties acquired before CGT existed need a retrospective valuation at the original CGT introduction date to establish a defensible cost base.

Inherited property

The cost base for inherited assets is the market value at the deceased's date of death. A retrospective date-of-death valuation is required for executors and beneficiaries.

Change of purpose (main residence ↔ rental)

Moving into or out of an investment property triggers a CGT event. The market value at the date of change becomes a critical cost-base reference point.

Related party transfer

Transfers within family, trust restructures, SMSF acquisitions, or company-to-shareholder distributions all require independent market value for ATO purposes.

Subdivision or development

Subdividing or developing a property triggers CGT events on the underlying land. Valuations are required at each apportionment to determine cost base allocation.

Worked examples

Three scenarios showing how the apportionment works.

Each scenario uses round, illustrative figures to show the principle. Actual tax outcomes depend on your marginal rate, eligibility for the new-build opt-in, and whether the means-tested income-support exemption from the 30% minimum applies to you — always confirm with your accountant.

Scenario 01

Investment property held across 1 July 2027

Sydney apartment bought January 2020 for $800,000. Owner obtains a contemporaneous valuation at 1 July 2027 of $1,200,000. Property sold January 2031 for $1,500,000.

Acquisition cost (Jan 2020): $800,000
Market value at 1 July 2027: $1,200,000
Sale price (Jan 2031): $1,500,000
Pre-2027 gain (taxed under existing 50% discount regime): $400,000
Post-2027 gain (taxed under new indexation + 30% min regime): $300,000

Why the valuation matters: Without the 2027 valuation, the gain would be back-estimated at the time of sale — usually a less defensible figure to substantiate on audit, and harder to support the further the sale is from the reset date.

Scenario 02

Inherited property — date-of-death valuation

Beneficiary inherits a Melbourne house when the deceased dies in March 2025. The property was the deceased's main residence. Beneficiary holds it as an investment from 2025 and sells in 2032.

Date of death: March 2025
Market value at date of death (becomes the cost base): Requires retrospective valuation
Beneficiary's holding period: 2025 – 2032
Gain on eventual sale (sale price − date-of-death value): Apportioned across pre/post 2027 if held that long

Why the valuation matters: Without a date-of-death valuation, the ATO may substitute its own figure if your stated cost base is queried. A retrospective valuation prepared by a Chartered Valuation Surveyor — using historical sales records, council data, and archival evidence — is the strongest position to take.

Scenario 03

Change of purpose — main residence becomes a rental

Owner-occupier converts their Brisbane home to a rental in July 2026. The 'first used to produce income' rule applies: the market value at the date of the change becomes the new cost base for any future CGT calculation.

Original purchase (2015): $500,000
Change-of-purpose date: July 2026
Market value at change of purpose (becomes the cost base): Requires contemporaneous valuation
Subsequent sale (e.g. 2031): Gain calculated from the 2026 cost base, then split pre/post 2027

Why the valuation matters: Without a 2026 change-of-purpose valuation, the full gain from the 2015 purchase price would be assessable — losing the main-residence exemption benefit. A contemporaneous market value at the date of change preserves the exemption for the owner-occupier period.

Illustrative only — not tax advice. Consult your accountant or tax adviser for treatment specific to your circumstances.

Run your own numbers

Try the interactive 1 July 2027 CGT calculator

Plug in your own purchase price, sale projection, and a proposed 1 July 2027 value — see the tax differential between the two apportionment methods, side by side.

Open the calculator

Compliance

Why a RICS-certified valuation is the strongest position.

The ATO accepts a range of valuation evidence depending on the asset class and context. What makes a report defensible under scrutiny is the combination of an independent, qualified valuer; a recognised methodology; and a clear audit trail — principles set out in the ATO's market-value substitution guidance and in the Australian Property Institute's professional standards.

Every Landmark CGT report is signed by a Chartered Valuation Surveyor holding RICS-Registered Valuer status, prepared in accordance with the RICS Red Book Global Standards 2025 and the International Valuation Standards (IVS), and covered by Professional Indemnity Insurance. That combination of standards, qualification, and insurance is what makes the report the strongest evidence you can hold if your CGT position is ever queried.

Deliverable

What's in your CGT valuation report.

Certified market value at the effective date (current, 1 July 2027, or retrospective)
Full property description and inspection notes
Comparable sales evidence with addresses, dates, and sale prices
Valuation methodology (Direct Comparison, Income Capitalisation, or Summation as appropriate)
Statement of assumptions, qualifications, and ATO compliance
Signed declaration by a RICS-Registered Chartered Valuation Surveyor

Request a valuation

Get a CGT valuation quote.

FAQ

Capital Gains Tax (CGT) Property Valuation Australia

The new CGT rules will change how every Australian property investor calculates capital gains.

The CGT regime, before and after 1 July 2027.

Why most property investors will need a 1 July 2027 valuation.

What is a Capital Gains Tax valuation?

Six scenarios that trigger a CGT valuation.

1 July 2027 transitional valuation

Pre-CGT (pre 20 September 1985)

Inherited property

Change of purpose (main residence ↔ rental)

Related party transfer

Subdivision or development

Three scenarios showing how the apportionment works.

Investment property held across 1 July 2027

Inherited property — date-of-death valuation

Change of purpose — main residence becomes a rental

Why a RICS-certified valuation is the strongest position.

What's in your CGT valuation report.

Get a CGT valuation quote.

Capital Gains Tax Valuation FAQs

Other valuations for the same audience.

Retrospective Valuation

Deceased Estate Valuation

Related Party Transfer Valuation

Property tax data referenced from this page.