CGT Valuation 2027: Avoid a Costly Tax Mistake

If you own an investment property, you’re going to need what’s being called a CGT valuation 2027 — a valuation of your property dated 1 July 2027. That’s not a typo for this year, and it’s not something you need to organise this week. It’s a legislated tax reform date, and the flexibility built into it is worth understanding before anyone panics about booking a valuer.

CGT valuation 2027: what’s changing under the reform

The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 received Royal Assent on 26 June 2026. From 1 July 2027, the 50% CGT discount that individuals, trusts and partnerships currently rely on is replaced with cost base indexation and a 30% minimum tax rate on gains. Every CGT asset held at 30 June 2027 — investment properties, business premises, farms, shares, and other eligible asset classes — undergoes a notional disposal and reacquisition at market value on that date. Nothing is triggered for tax purposes by this event itself. It simply draws a line.

Gain that built up before 1 July 2027 stays protected under the old rules, discount and all, whenever you eventually sell. Gain from 1 July 2027 onward falls under the new regime. The one number that decides how much of your total gain sits on each side of that line is the market value of your property at 1 July 2027 — which is exactly what a CGT valuation establishes.

Your family home isn’t affected. The main residence exemption is unchanged. This is about investment properties and other CGT assets — which matters directly to Perth landlords holding rental property through the transition.

Does the valuation have to be done on 1 July 2027?

No. This is the part worth sitting with: the valuation has to be effective as at 1 July 2027 — it doesn’t have to be conducted on that day, or even that month.

A Certified Practising Valuer can assess what a property was worth at 1 July 2027 after the fact, using comparable sales evidence from around that date. This is an accepted, recognised methodology, and a retrospective valuation carries the same standing as one done on the day. What matters is that the report is well documented and defensible by the time you come to sell — whether that’s in two years or twenty.

There is a practical case for not leaving it too long, though. The further past 1 July 2027 a valuer has to look back, the thinner the comparable evidence gets and the harder the report is to defend if the ATO ever queries it. If you’re planning to act, doing so within the following few months — rather than years down the track — gives you a cleaner, more reliable outcome.

Why use a professional valuer instead of the ATO’s default method

Without a professional valuation, the ATO applies a default formula: a straight-line apportionment based on your holding period, assuming your property grew in value at a steady rate from the day you bought it to the day you sell. Most properties don’t grow like that. If yours appreciated more in earlier years — plenty did through 2020–22 — the formula understates its 2027 value, which pushes more of your total gain into the new, less favourable post-2027 tax treatment.

A written valuation report from a Certified Practising Valuer, based on a site inspection and comparable sales evidence, is the standard the ATO recognises as the strongest evidence for CGT purposes. For most investors — particularly those who’ve held a property since 2015 or earlier — that valuation will land higher than the formula, protecting more of the gain under the old discount and reducing the tax exposure on the rest.

One thing it can’t be: a real estate agent’s appraisal. The ATO requires an independent, professional valuation for this purpose.

What Perth property investors should do now

• Make a list of which of your properties you’re likely to sell after 1 July 2027 — these are the ones the valuation matters for.
• Start pulling together purchase contracts, records of any improvements, and depreciation schedules now. A valuer will want this evidence regardless of when the valuation happens.
• Talk to your accountant about timing — every investor’s position is different, and this is a tax question, not a property management one.
• When you’re ready, engage a Certified Practising Valuer to produce your CGT valuation 2027 report — a comprehensive inspection valuation. If it’s after 1 July 2027 already, that’s fine — just don’t leave it indefinitely.

Frequently asked questions

Does the CGT valuation need to happen exactly on 1 July 2027?

No. The valuation needs to be effective as at 1 July 2027, but a Certified Practising Valuer can assess that value retrospectively using comparable sales evidence from around that date. A retrospective valuation carries the same standing as one done on the day itself.

Will this affect my family home?

No. The main residence CGT exemption is unchanged under the reform. Only investment properties and other CGT assets are affected.

What happens if I don’t get a professional valuation?

The ATO will apply a default straight-line formula based on your holding period. For most properties this understates the 2027 value, which can push more of your gain into the higher-taxed post-2027 period than a professional valuation would.

Can a real estate agent provide this valuation?

No. The ATO requires an independent valuation from a Certified Practising Valuer for CGT purposes — a real estate agent’s appraisal isn’t accepted evidence.

What asset types does this apply to?

The 2027 CGT changes apply to investment properties, business premises, farms, shares, and other eligible CGT assets held by individuals, trusts, and partnerships.

This is general information, not tax advice, and every portfolio is different. If you’d like to talk through what a CGT valuation 2027 means for your specific properties, get in touch — and we’d always recommend confirming the detail with your accountant or tax adviser as well.