On 26 June 2026, Federal Parliament passed the first stage of the capital gains tax (CGT) reforms. From 1 July 2027, the way capital gains are taxed will change, and one question we’re already hearing from clients is: “Do I need to get my assets valued?”
The ATO released new guidance on 19 October 2026 that answers this. The short version: you may need a valuation down the track, but not yet. Here’s what you need to know.
Why the value at 1 July 2027 matters
Under the new rules, if you own an asset before 1 July 2027, the law treats you as if you sold it just before that date and bought it back on 1 July 2027. You don’t actually sell anything and there’s no tax to pay then. But the asset’s value at that moment does two jobs:
- it’s the “sale price” for working out your gain under the old rules, which still get the 50% CGT discount
- it’s the “purchase price” for working out your gain under the new rules, which don’t.
That gain is held over and only reported when you eventually sell the asset or another CGT event happens to it.
Example: why an accurate value matters
Lena bought a rental property in 2012 for $400,000. Just before 1 July 2027, it’s worth $700,000.
The first $300,000 of growth gets the 50% discount. The $700,000 then becomes her starting point under the new rules.
If her valuation is too low, say $600,000, more of her growth falls under the new rules without the discount, and she could pay more tax than she should.
If it’s too high, the ATO may challenge it, and she could face extra tax, interest and penalties.
Don’t get a valuation before 1 July 2027
The ATO has been clear that you don’t need a valuation in place on 1 July 2027, and you shouldn’t get one before that date. A valuation can’t predict the future. It has to be based on what was known at the valuation date.
Valuers regularly do “retrospective” valuations, which look back and work out what an asset was worth on a past date. That’s what you’ll need here.
Example
Mark wants to beat the rush and books a property valuer for March 2027. That valuation would be forecasting the value on 1 July 2027, which the ATO won’t accept. A valuation done after 1 July 2027, looking back to that date, is the right approach.
You also won’t need a value for your 2026-27 tax return. For most people, the earliest it will matter is the 2027-28 return, and only if you sell the asset that year.
There may be an alternative to a valuation
The Government is developing an alternative called the ‘apportionment method’, which would let you work out the value without a market valuation. It isn’t law yet, so the details aren’t known. The ATO will release guidance once it’s passed.
Who should value your asset?
The ATO cares more about how a valuation is done than who does it, but a suitably qualified professional gives you a much stronger position. As a guide:
| Type of asset | Who to use |
|---|---|
| Investment property, land, holiday home | A registered or licensed property valuer. Rules differ by state, for example Queensland valuers must be registered with the Valuers Registration Board of Queensland and WA land valuations need a licensed land valuer. |
| A business, goodwill or private company shares | An experienced business valuer, often an accountant who follows the professional valuation standard APES 225. There’s no formal registration board for business valuers, so check their experience. |
| Listed shares and ETFs | Market prices are publicly available. The ATO is yet to confirm exactly how it wants these valued, so hold off until it does. |
A quick appraisal from a real estate agent may not carry the same weight as a formal valuation, and one from someone connected to you, like a family member, is unlikely to be seen as independent. If you’re transferring property to family, market value rules apply there too.
Why DIY valuations are risky
Even when you use a professional, the responsibility for the valuation stays with you. The good news is that if you engage a qualified valuer, give them accurate information and rely on their report in good faith, the ATO generally treats that as taking reasonable care. That means you’re unlikely to be penalised if the valuation later turns out to be wrong, although you may still need to pay any extra tax and interest.That protection disappears if you do the valuation yourself, use someone without the right qualifications, give the valuer incorrect information, or should have known the value was wrong.
Example
A small business valued its own properties by comparing them to other properties that weren’t really similar. When the ATO had them professionally valued, they were understated by 25%. The business couldn’t explain its assumptions and was penalised for recklessness.
What a good valuation report includes
At a minimum, the ATO expects a valuation report to show:
- the purpose, including that it’s for CGT and the value immediately before 1 July 2027
- details of the asset and the date it’s valued at
- the method used, why it was chosen and, ideally, a second method as a cross-check
- the evidence and assumptions relied on
- the valuer’s qualifications and a statement that they’re independent
- the date the report was issued.
Your instructions to the valuer matter too. Give them full access to the information they need, let them reach their own conclusion, and make sure their fee doesn’t depend on the result. The ATO has a form for instructing your valuation consultant that can help. Keep the report and your instructions with your tax records.
Want more certainty? For high-value or complex assets, you can ask the ATO for a private ruling on the value or arrange a joint valuation, where you and the ATO appoint an independent valuer together. Fees apply, and the ATO can’t rule on a value for a future date, so this is something to consider after 1 July 2027.
What should you do now?
- Don’t book a valuation yet. Anything done before 1 July 2027 won’t be accepted.
- Keep your purchase records. Contracts, receipts and settlement statements are still essential.
- List the assets that will need a value. Property, business interests and private company shares are the main ones.
- Watch for more ATO guidance. The ATO will release more detail on how to value certain assets, which professionals to use, and what records to keep.
- Talk to us. We can help you work out which assets need valuing, when to do it, and who to use.
We’ll keep you updated as more guidance is released. You can also read more on the ATO’s capital gains tax page, or contact the team at 360 ONE Group Pty Ltd to talk through your situation.
This article is general information only and is based on ATO guidance published 19 October 2026 and the ATO’s Market valuation for tax purposes guide. It doesn’t take your personal circumstances into account and isn’t tax advice. Please speak with us before acting on it.