Capital Gains Tax Property Valuation Services
- Home
- Our Services
- Capital Gains Tax
Why You Need a CGT Valuation?
01
Detailed Overview of Capital Gains Tax Valuation
When you sell a property in Australia, the Australian Taxation Office (ATO) requires you to report any capital gain or loss. If the original purchase price (your cost base) isn’t clearly documented, or the property has changed use—such as becoming a rental—you’ll need a CGT valuation to determine its market value at a specific point in time.
Our professional CGT valuations help establish that value accurately and defensibly, ensuring you’re not overpaying tax—or under-declaring a gain.
02
When You’ll Need a CGT Valuation
You won’t always need a Capital Gains Tax (CGT) valuation when selling a property—but in some situations, it’s either required or a smart move.
You Turned Your Home Into an Investment Property
If you moved out and started renting out your former home, you’ll need to know what it was worth on the day it first started generating rental income. That valuation becomes your new cost base for CGT purposes.
The Property Was Inherited or Transferred Within the Family
When a property changes hands through inheritance or a family transfer, getting it valued at the time of acquisition or transfer helps calculate any future capital gain when sold.
You’re Missing the Original Purchase Records
Lost the paperwork from when you bought the property? The ATO allows a market valuation at the relevant date to be used instead. It’s a practical way to fill in the blanks.
The Property Was Bought Before 20 September 1985
Older properties are usually exempt from CGT—but if you’ve made major renovations or improvements since that date, you might owe tax on the increase in value from those works. A valuation can help separate the exempt portion from what’s taxable.
03
Why Use a Certified Property Valuer?
- A certified property valuer provides an independent, professional opinion that holds up where it matters—especially with the ATO. Unlike a real estate agent’s appraisal, which can be influenced by market hype or sales tactics, a certified valuation is based on hard evidence and follows strict standards. A formal valuation can make a big difference if you’re dealing with Capital Gains Tax. It gives your accountant something solid to work with and helps avoid issues in case of an audit. A small upfront cost can save you from more significant problems later.
04
How We Do Valuations for CGT
It starts with a quick chat to determine the valuation’s purpose—whether you’ve inherited a property, sold one, or started renting out your old home. We also confirm the key date the valuation needs to reflect.
From there, we either inspect the property in person or do a detailed desktop review using photos and records. We look at its condition and any upgrades and compare it to similar homes that sold around the same time—not what the market’s doing today. Once everything’s reviewed, we send you a signed report ready for your accountant or the ATO.
FAQs on CGT Valuation
How is CGT calculated in Australia?
Capital gain = Sale price – (Cost base + costs to buy/sell/improve). A valuation may replace the cost base if records are missing or the property changed use.
Is a valuation mandatory?
Not always, but it becomes necessary if the cost base can’t be proven or the use of the property has changed since it was acquired.
Can the ATO dispute my valuation?
Yes, but it’s far less likely if the valuation is done by an independent, qualified valuer using market-based evidence.
Does CGT apply to my home?
Usually not. If it’s your primary residence and you’ve lived in it the whole time without renting it out, you’re likely exempt from capital gains tax. If you did rent it or use it to earn income at some point, you might only get a partial exemption.
What would happen if I inherited the property?
You won’t pay CGT immediately, but you might when you sell it. In most cases, the property’s value when the previous owner passed away becomes your starting point for calculating any gain.
I’ve renovated the place—does that affect CGT?
Yes, in a good way. Significant improvements—like adding a room or upgrading the kitchen—can be added to what you paid for the property, which helps reduce your capital gain when you sell. Just make sure you’ve got the receipts.
Who should do the valuation for CGT?
It’s wise to go with a qualified property valuer who does this professionally and knows the market. The ATO is much more likely to accept their report, mainly if it includes evidence like recent sales of similar properties.
Can I just use an online property estimate?
Those are fine for a rough idea, but not for tax purposes. The ATO won’t accept them because they’re too general and don’t explain how the value was worked out. A proper valuation is worth the extra effort.
Clients Feedback
Reviews of CGT Valuation Services
Latest Blogs
