CGT Valuations as at 1 July 2027

The way capital gains are taxed in Australia changes on 1 July 2027. For property you already own, the value of the property on that date will be used to work out the tax when you eventually sell. PWE Property Consultants & Valuers provides independent valuations as at 1 July 2027 for property owners and their accountants across the Perth metropolitan area. Every report is prepared by a licensed valuer with over 20 years’ experience.

What is changing?

The Australian Taxation Office (ATO) has confirmed that the following is now law. From 1 July 2027, for individuals, trusts and partnerships:

• the 50 per cent capital gains tax (CGT) discount is replaced with indexation of the cost base for inflation
• a minimum tax rate of 30 per cent applies to capital gains
• the new rules apply only to gains that build up after 1 July 2027

The Government has said the 50 per cent discount will continue to apply to gains built up before 1 July 2027, that nothing is taxed until the property is sold, and that the main residence remains exempt.

Why the value at 1 July 2027 matters

Because gains before and after 1 July 2027 are treated differently, the value of a property on that date separates the two. The Government’s Budget fact sheet says owners will work out that value as part of their tax return for the year they sell, and can do so by:

• obtaining a formal valuation as at 1 July 2027, or
• using a set apportionment formula.

A formal valuation records what your property was worth on the day, supported by sales evidence from the time. Your accountant can advise which approach suits your circumstances.

Property bought before 20 September 1985

The Government has said the changes also apply to property bought before CGT began on 20 September 1985, and that gains on those properties built up before 1 July 2027 will continue to be exempt. For these owners the value at 1 July 2027 is an important figure to have on record.

How PWE can help

• An independent market valuation of your property as at 1 July 2027
• An inspection of the property, with its condition recorded at the time
• Analysis of comparable sales evidence at the valuation date
• A signed report by a licensed valuer, suitable for your accountant and for ATO purposes

A valuation as at 1 July 2027 can be prepared on or after that date. The evidence is strongest when the property is inspected close to the date, so we suggest contacting us ahead of time and keeping dated photographs and records of the property’s condition.

Why choose PWE?

PWE is an independent Perth valuation practice whose three directors are all licensed valuers, each with more than 20 years’ experience. Capital gains tax valuations and retrospective valuations are a core part of our work, and we are regularly instructed by accountants and financial advisers on behalf of their clients.

Frequently asked questions

Do I have to pay tax on 1 July 2027?

No. The Government has said nothing is taxed until the property is sold.

Do I need a valuation if I am not planning to sell?

The value at 1 July 2027 will be needed whenever you do sell, which may be many years away. A valuation prepared close to the date is easier to support than one reconstructed long afterwards.

Does this affect my home?

The Government has said the main residence will continue to be exempt from CGT. Your accountant can confirm your position.

Can I use an agent’s appraisal?

The ATO’s guidance on market valuations says valuations by professional valuers are more credible, and that any valuation must be objective and supported by evidence.

Which areas do you cover?

We value property throughout the Perth metropolitan area.

This page is general information based on material published by the Australian Government and the ATO. It is not tax advice. Please speak to your accountant about your own circumstances.

Talk to a valuer

Call (08) 9228 9955 or send us a message to discuss a valuation as at 1 July 2027.

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