30 June 2027 Property Valuation

What changes on 1 July 2027

From 1 July 2027 the 50 per cent CGT discount is generally replaced, for Australian resident individuals, trusts and partners, by cost base indexation and, for individuals, a 30 per cent minimum tax rate on capital gains. New residential dwellings and affordable housing keep a discount of at least 50 per cent. Companies are not affected: they never had the discount.

Gains that built up before then keep the discount. To separate the two, Australian resident individuals and trusts are generally treated as having sold and bought back their CGT assets at market value just before 1 July 2027. Assets acquired before 20 September 1985 are treated the same way. That makes the value at 30 June 2027 the dividing line when the property is eventually sold.

A valuation or the apportioning method

A valuation is not the only way. Instead of market value, the law lets you choose an apportioning method set by the government. You make the choice in your tax return for the year you sell.

The apportioning method was released in draft in August 2026 (Treasury consultation 3 to 21 August 2026) and, at the time of writing, had not been finalised. The draft sets out a formula that uses the price you eventually sell for. A valuation instead reflects the sales evidence around 30 June 2027. Which gives the better result depends on your property, so ask your accountant whether a valuation at 30 June 2027 suits you.

When the valuation can be done

A valuation at 30 June 2027 is normally prepared after that date, because it relies on sales evidence up to then. The law sets no deadline, so it can also be prepared later as a retrospective valuation, though the evidence is easiest to gather close to the date.

Fees