Quick answer
A pre-CGT asset is one you acquired before 20 September 1985, when capital gains tax started. Its gains have been outside CGT. From 1 July 2027, gains up to that date stay exempt but growth after it becomes taxable, so the market value on 1 July 2027 becomes the starting point.
If you bought a property before 1985, capital gains tax has probably not been a concern until now. Assets acquired before capital gains tax began are pre-CGT assets, and their gains have generally been disregarded. The pre-CGT date is 20 September 1985, and from 1 July 2027 the picture changes. A CGT valuation is how many owners will fix the starting point.
This guide explains what pre-CGT means, how the date works, what changes and what to keep on file.
In this guide
What is a pre-CGT asset?
Capital gains tax applies to assets acquired on or after 20 September 1985. An asset you acquired before that date is a pre-CGT asset, which means an acquisition on or before 19 September 1985. Generally, a gain or loss when you sell a pre-CGT asset is disregarded.
People often search for the "pre CGT date" or "pre CGT" without the hyphen. They mean the same thing.
The pre-CGT date: 20 September 1985
The pre-CGT date is fixed, so the evidence matters. The date that counts is when you acquired the asset, normally the date of the contract. It is not when the family first bought property or when you moved in.
| Acquired | Status | Treatment until now |
|---|---|---|
| Before 20 September 1985 | Pre-CGT asset | Gains have generally been outside CGT |
| On or after 20 September 1985 | Post-CGT asset | CGT applies when you sell or otherwise dispose of it |
If you say a property is pre-CGT, you should be able to show when you acquired it. Useful records include the contract of sale, title or transfer documents, early council rates notices and solicitor or conveyancing files. Your accountant will ask for them.
What changes from 1 July 2027
Under the Treasury Laws Amendment (Tax Reform No. 1) Act 2026, pre-CGT assets no longer keep a full exemption from 1 July 2027. Gains that built up to 1 July 2027 stay exempt. Growth after that date can be taxable, and the starting point is the asset's market value on 1 July 2027.
In practice that means a pre-CGT property will need a supported value as at 1 July 2027, from a CGT valuation or from an apportionment method (an estimate based on time or growth) if one is available. The rules differ by type of owner, so confirm the detail with your accountant. Owners of older family property, farms and long-held investments are the most likely to be affected. Our property valuers value residential, commercial and rural property across Australia.
Illustration only, and it leaves out costs. How the new rules apply depends on the owner and the asset. Your accountant will work out your result.
Own a property from before 1985?
Talk to a valuer about the evidence you will need for the 1 July 2027 starting point. The first call is free.
Can improvements change pre-CGT status?
They can. Under the ATO's guidance, a major capital improvement (large spending that adds to the asset, such as an extension) made to a pre-CGT asset after 20 September 1985 can be treated as a separate asset and may be subject to CGT. Other changes, such as a subdivision, can also need separate treatment. Keep the invoices and plans for any large works.
What about inherited and gifted property?
Pre-CGT status depends on when you acquired the asset. If you inherit property from someone who died on or after 20 September 1985, you are generally treated as acquiring it on the date of death, even if the person owned it for decades. If you receive property as a gift, you acquire it when you receive it.
Some transfers can keep the status, for example certain transfers between spouses after a relationship breakdown. If the history is mixed, ask your accountant before assuming either way.
When does a valuation help?
A valuation is useful for pre-CGT owners when:
- You hold the property across 1 July 2027 and need a supported market value for the starting point
- The property has changed since 1985 and you need the value of the land and the improvements understood
- Records are missing and a retrospective valuation is needed for a past date
- You want a clear record for your accountant, family or executor
Mistakes to avoid
Four assumptions to avoid:
- Assuming inherited property is pre-CGT. If the person died on or after 20 September 1985, you generally acquire it on the date of death.
- Assuming the status never changes. Major capital improvements after 20 September 1985 can be treated as separate assets.
- Keeping no proof of the acquisition date. Without it, the exemption is hard to support.
- Assuming every owner is treated the same from 1 July 2027. Companies, trusts, super funds and individuals can differ. Ask your accountant.
Key terms explained
- Pre-CGT asset
- An asset you acquired before 20 September 1985, whose gains have generally been outside capital gains tax.
- Post-CGT asset
- An asset acquired on or after 20 September 1985. CGT applies when you sell or otherwise dispose of it.
- Major capital improvement
- Large spending that adds to what the asset is, such as an extension, rather than repairs or maintenance.
- Market value
- The price a willing buyer and a willing seller would agree, each acting knowledgeably and without pressure.
- Acquisition date
- The date you acquired the asset, normally the date of the contract. It decides whether the asset is pre-CGT.
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.
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Sources and further reading
- Australian Taxation Office: Capital gains tax
- Parliamentary Library: Treasury Laws Amendment (Tax Reform No. 1) Bill 2026
- 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.