What Is a CGT Property Valuation? Scope & Evidence

A CGT property valuation is an independent, qualified valuer’s written opinion of a property’s market value as at a specific date, prepared so it can stand up if the ATO questions it. It is the evidence behind the numbers you (or your accountant) use to work out a capital gain — not a real-estate sales appraisal, and not an automated online estimate.

Reserve your dated valuation — no payment

A market value, as at a specific date

#

The defining feature of a CGT valuation is the date. The valuer answers one question: what was this property worth on that day? The day is fixed by a CGT event — for example:

• the 1 July 2027 cost-base reset, when your property’s market value at the end of 30 June 2027 becomes its new cost base on 1 July 2027;
• a home first used to produce income (first rented out);
• an inheritance or a transfer between related parties with no arm’s-length sale price.

Because the value is tied to a day, the cleanest evidence is a valuation prepared contemporaneously — around the date itself, while sales evidence and the property’s condition are still fresh. A value reconstructed years later (a retrospective valuation) is legitimate and often relied on, but it is harder to evidence.

How that dated value then flows into your cost base and gain calculation is a separate topic — see the cost-base mechanics at cgtcostbase.com.au.

What a CGT valuation actually contains

#

A defensible report is more than a number. Expect:

• Comparable sales evidence — recent, genuinely comparable transactions near the valuation date, with adjustments explained.
• A stated methodology — usually direct comparison for residential property, with the reasoning set out so a reviewer can follow it.
• Independence — prepared by a qualified valuer with no stake in the outcome. Independence is what gives the figure weight if it is ever tested.
• A signature and effective date — the valuer signs the report and states the effective valuation date and its purpose (CGT).

This is why an agent’s market appraisal or an automated online estimate is not a substitute: neither is independent, signed, or prepared to an ATO-acceptable, audit-ready standard.

Desktop vs on-site: two levels of scope

#

There are two common scopes, and the right one depends on the property and how much is at stake:

• Desktop assessment — the valuer assesses the property from sales evidence, records and property data without attending in person. Faster and lower cost, but with no inspection it is not a valuation under the International Valuation Standards — it suits lower-stakes purposes such as updating or monitoring an earlier figure, not a CGT figure the ATO may test.
• On-site (full inspection) — the valuer inspects the property, capturing condition, improvements and features that data alone can miss. The most defensible option, and the stronger choice where value is high, the property is unusual, or dispute risk is real.

Both are signed by a qualified valuer, but the signature is not what decides what a report can be used for — the level is. For a CGT figure, that means the on-site inspection — see what a CGT valuation costs for how scope drives price.

Why a defensible valuation matters most when the stakes are high

#

Any valuation gives you a number. A defensible one gives you a number that holds up. The difference matters most when:

• the tax exposure is large — a higher, well-evidenced value at the reset can materially change the gain measured later;
• there is dispute or audit risk — related-party transfers, deceased estates, or unusual properties tend to draw more scrutiny;
• the value will be relied on years later, when memories fade and comparable sales go cold.

In those situations, thin evidence is a liability. Strong comparable sales, a clear methodology and an independent signature are what turn a figure into evidence.

Is a valuation compulsory?

#

No — it is a choice. For the 1 July 2027 reset the law also allows a free apportioning method, set by the Treasurer (which estimates the 1 July 2027 value by compounding one constant growth rate across your whole ownership period). A valuation is the more defensible alternative, and it matters most when the formula would understate your property’s real value — strong recent growth, renovations, or an unusual property. Compare the two at valuation vs the free formula, and confirm which applies with your accountant.

Note: for property acquired on or after 20 September 1985, SMSFs and companies sit outside the new CGT regime. Pre-CGT property is caught whoever holds it. Foreign and temporary residents are a separate case: they remain liable on Australian property and lose the 50% discount without gaining the indexation that replaces it.

Where a CGT valuation fits

#

• Check you’re ready — the readiness checklist at cgtready.com.au.
• Understand the cost base — the mechanics at cgtcostbase.com.au.
• Accountants — preparing many clients? Volume pricing and batch submission are available through the Valuation Ready partner portal.

When you’re ready, reserve a dated valuation — no payment is taken to register your interest.

Questions

#

General information only — not tax, financial or legal advice. A market value “as at” a date is provided by a qualified valuer; whether a valuation or the apportioning method suits your situation is a decision to confirm with your accountant.