Capital Gains Tax Property Valuation Services
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Why You Need a CGT Valuation?
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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.
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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.
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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.
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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.
What is a Property Valuation?
A property valuation is an independent, formal assessment that determines a property’s market value. Practically, it involves gathering relevant market data and producing an evidence-based dollar estimate. In Australia these valuations are normally completed by an API- or AVI-registered valuer who follows professional and legal standards. The term “sworn valuation report” was commonly used in the past and some lawyers still use it, although it’s less common today.
At Local Valuers, most B2C enquiries arrive by phone or email. We typically adopt a direct comparison approach, using recent sales and market data. Before providing a quote we review CoreLogic, zoning information and market trends to estimate complexity and time required.
A valuation differs from an agent’s appraisal: an appraisal is usually produced by a real estate agent to assist a sale, whereas a valuation is an independent, evidence-based report designed to give legal and financial clarity. Valuation reports are used for legal matters, financial decisions and accounting. Clients usually expect a physical inspection where we take photos, measurements and notes to underpin the final written report.
In short: a property valuation is a certified, independent assessment of market value documented in a legally compliant report.
How Much Does a Property Valuation Cost in Australia?
Typical residential valuations in Australia range from $300 to $1,000. Commercial valuations are specialist work and usually start at $1,000; fees increase with complexity, size, uniqueness and market conditions. Location, property type, urgency and whether an inspection is required also affect the final fee.
Lower-cost options from non-certified providers may exist but are often not legally compliant or acceptable for formal purposes. Choosing a certified local valuer gives accuracy, compliance and peace of mind especially where legal, tax or financial credibility is required. When comparing fees online, confirm the valuer is certified and that an inspection is included in the quoted price.
How Long Does a Property Valuation Take?
A typical residential inspection with Local Valuers Australia takes 10–15 minutes. Our senior certified valuers complete inspections quickly due to experience. The written report is usually delivered within 2–3 business days. For urgent needs (e.g., bail bond valuations) we can prioritise same-day turnaround, sometimes within a few hours.
Factors that can extend timelines include large land areas, unusual features, missing client documentation, or complex legal circumstances. Using an experienced local valuer typically shortens timelines due to local market knowledge and efficient report preparation.
When is a Property Valuation Needed?
Valuations are required for many situations, including: buying or selling (to confirm market value); divorce/family law (impartial asset division); probate and deceased estates (establishing values for inheritance); tax (capital gains, stamp duty); insurance and dispute resolution (to support claims); and refinancing or bank lending. In all cases, the valuation provides an independent, legally compliant figure relied upon by courts, accountants, and government bodies.
What Factors Influence Market Value?
Major influences include:
- Location & neighbourhood: proximity to schools, transport, shops and the suburb’s reputation strongly affect price.
- Condition & age: well-maintained or newer properties command higher values; defects reduce value. We inspect roof, windows and general condition.
- Comparable sales: recent market sales are a primary input — we scan 50+ data sources for sale evidence.
- Economic conditions & interest rates: these influence buyer demand; we monitor local and international interest rate trends.
- Zoning & development potential: sites with subdivision or development upside can carry a premium.
- Market sentiment & buyer confidence: local demand and regional growth influence prices.
- Seasonality: buyer activity is typically higher in spring and summer, which can be reflected in valuations
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