Valuation purposes
Property valuations for capital gains tax
Capital gains tax is calculated from the difference between what a property was worth when it entered the tax net and what you eventually get for it. A valuer's job is to fix that starting figure with evidence the ATO will accept — often at a date years in the past.
What you need to know
When a valuation is needed for CGT
Most owner-occupiers never need one. The situations that trigger a valuation are the ones where a market value has to be substituted for an actual price, because no arm's length sale took place at the relevant moment.
- A home that was your main residence starts producing income
- A property is inherited and the cost base is its value at the date of death
- Property is transferred between related parties, or into or out of a trust or company
- A property is subdivided, or its use changes
- Records of the original acquisition are incomplete
Retrospective valuations, and why the date is everything
A CGT valuation is almost always retrospective: it assesses market value as at a specific past date. The evidence has to come from that period too — comparable sales that settled around the valuation date, not the ones settling now.
This is precisely where free online estimates and agent appraisals fail. An automated estimate reflects today's data and has no method for reconstructing a historical market. A retrospective valuation reconstructs it explicitly, and shows its working.
What the ATO expects to see
A market valuation used for tax purposes should be prepared by a qualified valuer, state the valuation date clearly, explain the methodology and set out the evidence relied on. The point is that a reviewer can follow the reasoning and reach the same conclusion.
A number without reasoning behind it is the thing most likely to be questioned. So is a valuation prepared by someone with an interest in the outcome.
Get your accountant involved early
Whether a valuation is required at all, and what date it should be assessed at, are tax questions rather than valuation questions. Your accountant will identify the relevant date; we'll establish the value at it. Ordering the valuation before that date is confirmed is the most common way people end up paying for the wrong report.
Choosing a report
Desktop, curbside or full inspection?
Desktop
Efficient valuations based on market data analysis without physical inspection. Ideal for preliminary assessments and internal decision-making.
DetailsCurbside
Quick external inspections providing reliable market estimates. Perfect for lending purposes and portfolio reviews where detailed inspection isn't required.
DetailsFull inspection
Comprehensive internal and external property inspections with detailed market analysis. Ideal for legal matters, settlements and accurate market value assessments.
DetailsOther reasons people get a valuation
Got questions?
Frequently asked questions
Can you value a property as at a date several years ago?
Yes. Retrospective valuations are routine, provided there is adequate sales evidence for the period. Tell us the date your accountant has identified and we will assess value as at that date.
Will the ATO accept an online estimate or an agent appraisal?
These are not market valuations. An agent appraisal is a free marketing estimate with no professional liability behind it, and an automated estimate cannot reconstruct a historical market. For tax purposes you need a valuation from a qualified valuer that sets out its evidence and methodology.
My property was my home and is now rented. What date do I need?
Where a main residence begins producing income, the market value at the date that first happens can become relevant to the CGT calculation. Confirm the applicable date with your accountant, then we can assess it.
Does a CGT valuation cost more than a standard one?
Generally yes. Retrospective work requires historical sales research and a more detailed written rationale than a current market valuation, and the fee reflects that.