Quick answer
To get a CGT valuation done without rework, send the valuer the property address, the valuation date, the purpose, the ownership history and any records of improvements. The valuer then states market value as at that date, with the evidence, in a report you can use for your client.
When a client needs a CGT valuation, a short brief saves time and avoids rework. This checklist sets out what a valuer needs from you, how to choose the valuation date, and what a valuation report for capital gains tax should contain.
It is written for accountants, tax advisers and other advisers, though property owners can use it too. We cover the valuation side. You decide the tax treatment for your client. See how we work with accountants and advisers.
In this guide
What to send the valuer
A complete brief has these items. Send what you have, and we will ask for the rest:
- The property: the address and title details
- The owner: the person or entity (an individual, trust, company or super fund)
- The valuation date: a specific date, not just a year
- The purpose: for example a CGT event, a change of use, the 1 July 2027 changes or a date of death
- Ownership history: when and how it was acquired (bought, inherited or gifted) and for how much, if known
- Improvements and use: renovations or subdivisions, and whether it was lived in, rented or empty
- Past valuations or insurance values, if any
- Access: who to contact for an inspection, if one is needed
Choosing the valuation date
The valuer values the date you give, so it needs to be right. Use this as a starting point, then confirm the date for your client's situation. A retrospective valuation covers any past date.
| Situation | Valuation date usually asked for |
|---|---|
| Inherited property | The date of death |
| A home first used to produce income | The date it was first used to produce income |
| A gift or transfer below market value | The date of the gift or transfer |
| Property held across the CGT changes | 1 July 2027 (the report can only be finalised after that date) |
| A past value that was never recorded | The date your client needs, using a retrospective valuation |
These are general starting points. The right date depends on the rule that applies to your client.
CGT valuation requirements: what is market value?
For most CGT purposes the rules ask for CGT market value, meaning the price a willing buyer and a willing seller would agree, each acting knowledgeably and without pressure. Many rules do not name who must work it out. The tax rules expect the figure to be reasonable and supportable, and an independent valuation is the strongest evidence. Check the rule that applies to your client.
What should a valuation report for capital gains tax contain?
A report that is easy to use for your client:
- States the valuation date and the purpose it was prepared for
- States what is being measured, called the basis of value, which for CGT is market value
- Identifies the property exactly, with title details and any improvements
- Sets out the sales evidence (recent comparable sales) relied on and how it was adjusted for differences
- Lists the assumptions made and any limits on the inspection or information
- Is signed by a qualified valuer, with their qualifications and a statement of independence
Have a CGT job to send?
Tell us the property, the valuation date and the purpose. We confirm scope, timing and fee before any work starts, and the first call is free.
What causes rework?
Common causes of rework:
- The wrong date. Confirm it before you send the brief.
- No purpose stated. The report should say what it is for.
- Missing ownership history. It can change which rules apply.
- Undisclosed changes. Tell us about renovations, subdivisions or a change of use.
- An unclear owner. A trust, company or super fund can be treated differently from an individual.
- Treating an agent's estimate as a valuation. It usually does not set out the evidence.
Send us a CGT job
Send the items above and we will confirm scope, timing and fee before any work starts. With your client's permission we are happy to talk to you about the report so it suits what you need.
Key terms explained
- Valuation date
- The date the value is worked out for. The valuer values that date, so it needs to be right.
- Market value
- The price a willing buyer and a willing seller would agree, each acting knowledgeably and without pressure.
- Cost base
- Broadly, what was paid for the property plus certain costs of buying, owning and improving it. It is the figure the gain is measured from.
- CGT event
- The trigger for capital gains tax, most often selling the property.
- Entity
- The person or body that owns the asset, such as an individual, a trust, a company or a super fund.
Need a CGT valuation? Talk to a valuer.
Tell us the property, the date you need the value for and what it is for. We will tell you what is needed and what it involves.
Free first call. Fee confirmed before work starts. Certified Practising Valuer. Australia-wide.
Sources and further reading
- Australian Taxation Office: Capital gains tax
- Australian Property Institute: The CGT changes and property valuations
This is general information, not tax advice. Speak to your accountant or tax adviser about your own position. A valuation sets out market value at a stated date. It does not work out your tax.