Capital gains tax (CGT) rules are changing from 1 July 2027.
A common reaction might be to book a valuer straight away, but the ATO says to hold off: a valuation obtained now won’t satisfy the requirements under the new rules.
What’s actually changing?
For capital gains accruing from 1 July 2027:
- The 50% CGT discount for resident individuals, trusts and partnerships will be replaced with cost base indexation.
- A minimum 30% tax rate will apply to individuals on certain net capital gains.
- People holding pre-CGT assets will become subject to CGT on gains accruing from 1 July 2027.
There are some exceptions.
Eligible new residential dwellings may continue to qualify for the 50% CGT discount, while people receiving certain government support payments will be excluded from the 30% minimum tax.
Importantly, there are no changes to the meaning of a CGT asset, the framework of a CGT event or the main residence exemption.
Why you shouldn't get a valuation today
You may eventually need to establish the market value of your CGT asset immediately before 1 July 2027 when calculating a capital gain or loss. However, this doesn’t mean you need to have a valuation completed by that date.
In fact, unless a sale or restructure is imminent, obtaining a valuation before 1 July 2027 is generally unnecessary. A valuation cannot reliably predict a future market value.
The ATO considers that a market valuation for tax purposes must relate to the specific date required by the legislation. A prospective valuation is not acceptable.
In other words, paying for a valuation today won’t lock in the value of your asset for 30 June 2027.
When will you actually need the valuation?
Generally, you won’t need to establish the market value of your asset immediately before 1 July 2027 when preparing your 2026–27 income tax return.
For most CGT assets, including real estate, the market value will only need to be established when you eventually dispose of the asset or another CGT event occurs.
For most individuals and trustees, the earliest time a capital gain calculated using these transitional rules will need to be included in a tax return is on or after 1 July 2028, when lodging the 2027–28 income tax return.
Your options at the transition date
Depending on the asset, you may need to establish its market value immediately before 1 July 2027.
Alternatively, for real property and assets without a readily ascertainable market value, you may be able to choose the apportionment method.
For affected post-CGT assets, any gain or loss arising under the transitional rules is generally deferred until a later disposal or CGT event.
For pre-CGT assets, gains or losses accruing before 1 July 2027 will generally be disregarded.
Treasury has consulted on a draft apportionment method, but the final approach has not yet been determined.
Focus on your records
If you already own a CGT asset, or acquire a new CGT asset before 1 July 2027, you should continue to meet the existing record-keeping requirements.
This includes keeping details of:
- When you acquired the asset and what you paid for it.
- The asset’s value at the time of acquisition.
- Any changes to the asset’s character or ownership during the period you have held it.
The ATO is expected to release further tools and guidance covering how to determine market value for certain assets, which professionals to consider when obtaining a valuation, and the documentation and records required.
Need a hand?
Every asset is different, and the right approach will depend on when you acquired it, how you’ve used it and what you intend to do with it.
Before commissioning a valuation, contact us so we can assess your circumstances and work out the most appropriate strategy.
6 November 2026