What changes on 1 July 2027?
The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 changes how capital gains are taxed. From 1 July 2027 the 50 per cent CGT discount is generally replaced, for Australian resident individuals, trusts and partnerships, by indexation of the cost base and, for individuals, a 30 per cent minimum tax on certain capital gains.
Gains that built up before 1 July 2027 keep the discount, and the new rules apply after that. So when you eventually sell, the gain is split at that date.
Why might the value at 30 June 2027 matter?
To separate the two parts of a gain, Australian resident individuals and trusts are generally treated as having sold and bought back their CGT assets just before 1 July 2027, at market value. You keep the property. The value at that moment becomes the dividing line when the property is eventually sold.
Property acquired before 20 September 1985 and still held on 30 June 2027 is also treated as sold and bought back just before 1 July 2027. The gain up to then is disregarded, and that value becomes its cost base from then on. See property bought before 1985.
Is there an alternative to a valuation?
The law also allows for a government-set apportioning method as an alternative to market value, but it has not been finalised yet. A draft apportioning method was released for consultation in 2026 and, at the time of writing, had not been finalised.
The choice is made in the tax return for the year the property is sold, or another CGT event happens, so nothing has to be chosen now. Which way gives the better result depends on the property, so ask your accountant whether a valuation at 30 June 2027 may be useful for you.
Who does the change apply to?
- Australian resident individuals, trusts and partnerships. The discount is generally replaced by indexation of the cost base and, for individuals, the 30 per cent minimum tax on certain capital gains.
- Companies. Companies are not affected by the discount change, because they never had the discount, but the rule for property acquired before 20 September 1985 is not limited to individuals and trusts.
- Your home. The main residence exemption for your home is not changed.
- New homes and affordable housing. New residential dwellings and affordable housing keep a discount of at least 50 per cent.
What counts as a new residential dwelling is not settled. The Treasury Laws Amendment (Tax Reform No. 3) Bill 2026, introduced on 14 October 2026, would put the test in the Act. Among other conditions, a certificate of occupancy would have to have been first issued at or after 7.30 pm (ACT time) on 12 May 2026, with a transitional rule for some unsold builder stock that already had a certificate. The Bill was referred to the Senate Economics Legislation Committee on 15 October 2026, with its report due on 13 November 2026. It is not law, and this guide describes the law as it stands.
Your accountant decides how the rules apply to you.
When can a 30 June 2027 valuation be done?
After the day. A valuation at 30 June 2027 relies on sales evidence up to that date, so it is prepared after it. The ATO has said clients should not get one before then, because a valuation cannot be forward-looking.
The law sets no deadline, so it can also be prepared later as a retrospective valuation. The evidence is easiest to gather close to the date. The Australian Property Institute suggests that a valuation prepared close to the date, ideally three to four months after 1 July 2027 and at most within two years, is more reliable than one prepared years later.
What can you do now?
There is nothing to value yet. A few steps help later:
- Ask your accountant whether a valuation at 30 June 2027 may be useful for your property.
- Register free. It is not a booking, and you are not committing to a valuation. After 30 June 2027 we get in touch to say whether we can take it on and, if we can, to confirm the valuer, fee and timing. Nothing is charged until you accept.
- Keep records of the property as it is now, such as photos and dated invoices for any work. See records to keep.
- If you renovate around mid-2027, keep dated invoices and photos, because the property is valued as it was on the day.
What will it cost?
Today’s fees are $149 for a Desktop CGT Valuation and $495 for an Inspected CGT Valuation, both including GST. We confirm the fee in writing after 30 June 2027, before anything is booked. See pricing, and desktop or inspected to compare the two reports.
For a valuation at another date, such as the day a home became a rental or the date of death for an inherited property, you can request one now. How property is valued for CGT explains how a valuer works out market value, our questions page has short answers, and the glossary explains terms such as the apportioning method. Accountants can see for accountants.
We value property. We do not give tax advice. Whether a valuation at 30 June 2027 is worth getting is a question for your accountant.