Most capital gains are worked out from what an owner paid and what they sold for, with no valuation involved. Market value comes in where the law replaces a price, or where there was no price at all. Super law also asks a self-managed super fund to value its assets at market value every year. This page lists each use we cover, the date the property is valued at, and where to read more.
Every use at a glance
| Use | Valuation date | The rule | Read more |
|---|---|---|---|
| A home first rented out or used for business | The day it was first used to produce income | Section 118-192 | Home becomes a rental |
| Inherited property, for the beneficiary | The date of death | Section 128-15 | Inherited property |
| A deceased estate, for the executor | The date of death | Sections 128-15, 104-215 and 118-195 | Deceased estates |
| A gift, or a transfer not at arm’s length to family, a company or a trust | When the CGT event happens (for a sale, the contract date) | Sections 116-30 and 112-20 | Transfers |
| A self-managed super fund’s annual accounts | The 30 June the accounts are made up to | Regulation 8.02B, SIS Regulations | SMSF trustees |
| A super fund acquiring property from a related party | The date the fund acquires it | Section 66, SIS Act | SMSF property |
| Property bought before 20 September 1985 and held on 30 June 2027 | Just before 1 July 2027 | Tax Reform No. 1 Act 2026 | Bought before 1985 |
| Property held across 30 June 2027 by an individual or a trust | Just before 1 July 2027 | Tax Reform No. 1 Act 2026 | 30 June 2027 |
Section numbers refer to the Income Tax Assessment Act 1997 unless marked SIS Act, the Superannuation Industry (Supervision) Act 1993. Regulation 8.02B is in the Superannuation Industry (Supervision) Regulations 1994. Conditions and exceptions apply to every row, and your accountant decides which rules apply to you and at which date.
When a home becomes a rental
If you first used your home to produce income after 20 August 1996, for example by renting it out, and a later sale would only be partly exempt, you are generally treated as having acquired it on that day for its market value then (section 118-192). The ATO’s guidance is to get a market valuation at the time, and it says you can arrange one later if necessary. See my home became a rental.
When someone dies
The executor, and a beneficiary the property passes to, are treated as having acquired it on the day of death. If the person who died acquired it before 20 September 1985, or it was their home just before they died and was not being used to earn income, its market value on the date of death generally becomes the cost base (section 128-15). For executors, the main residence rules for estates can also apply (section 118-195), and where property passes to a charity or a complying super fund, a capital gain or loss for the deceased is worked out from the date of death value (section 104-215). See inherited property for beneficiaries, deceased estates for executors, and the executor’s property checklist.
Gifts and transfers to family, a company or a trust
If you give property away, or transfer it to someone you are not dealing with at arm’s length for more or less than its market value, capital gains tax generally treats you as receiving its market value as at the time of the CGT event (section 116-30). The person, company or trust receiving it generally takes market value as the starting point of its cost base too (section 112-20). Stamp duty is assessed separately by each state or territory revenue office, so we quote these transfers first. See family and company transfers and a gift or sale to family.
Self-managed super funds
A self-managed super fund values its assets, including property, at market value when preparing its accounts each year (regulation 8.02B), and its approved SMSF auditor checks the evidence. A fund generally must not acquire an asset from a related party, with exceptions such as business real property acquired at market value (section 66 of the SIS Act). The ATO’s guide recommends considering a “qualified independent valuer” where a property is a significant proportion of the fund’s value or is likely to be complex to value. See for SMSF trustees and auditors and SMSF property valuations explained.
Property bought before 20 September 1985
The ATO says property acquired before 20 September 1985 is exempt from capital gains tax. Under the reforms, gains on it up to 1 July 2027 stay exempt, and gains from then on are generally taxed, unless an exemption such as the main residence exemption applies, using its value just before 1 July 2027 as the starting point. If the property was inherited, the beneficiary is treated as acquiring it on the date of death (section 128-15), so the date of death value is generally their cost base, and the rules for property held at 30 June 2027 can apply to them if they still hold it then. See property bought before 1985.
Property held at 30 June 2027
From 1 July 2027 the 50 per cent CGT discount is generally replaced, for resident individuals, trusts and partnerships, by cost base indexation and, for individuals, a 30 per cent minimum tax on certain capital gains. For an individual or a trust that acquired a property before 1 July 2027 and still holds it at the end of 30 June 2027, the law generally applies as if it was disposed of just before 1 July 2027 and reacquired on 1 July 2027, so its market value just before 1 July 2027 may matter when it is later sold. The law also allows for a government-set apportioning method as an alternative, but it has not been finalised yet. On 14 October 2026 the government introduced the Treasury Laws Amendment (Tax Reform No. 3) Bill 2026, which would adjust some of these rules. It is not law, and this page describes the law as it stands. A valuation at that date is prepared after the day: register free now, and see the 30 June 2027 change explained.
Valuing at a past date
Most of these dates are in the past by the time anyone asks. A retrospective valuation values the property as it was on that date, using sales from around then and records of the property at the time, and leaves out later changes. See valuing at a past date.
What every tax valuation has in common
Whatever the use, the ATO looks for a valuation that is objective and supported by evidence. At a minimum, it says a valuation report should contain the purpose, the scope, details of the property, the date it was conducted, whether it is a retrospective valuation, the inspection date if there was one, records explaining the basis of the value, and the value. Two more points from the ATO’s guide:
- A valuation should be specific to the tax or super provision it is for, and a valuation for a future date is not acceptable for tax.
- Difficulties are likely when a valuation prepared for a different purpose is relied on, so tell us every purpose at the start.
Our Desktop CGT Valuation is $149 and our Inspected CGT Valuation is $495, including GST, and a second valuation date in the same report is $149. Commercial, rural and development property, and anything likely to be worth more than $3 million, is quoted before anything is booked. Family transfers are quoted too. Every fee is on the pricing page.
What we do not cover
We value property in New South Wales, Victoria, the ACT and the Northern Territory only. We do not give tax advice, and our valuations are not prepared for mortgage lending, stamp duty assessment, family law or court proceedings.
We value property. We do not give tax advice. Your accountant decides which rules apply to you and which date to use.