Most capital gains tax dates are in the past: the day a home was first rented out, a date of death, the day property changed hands within a family. A valuer can still say what the property was worth that day. This page explains how, which evidence counts and how you can help.
When is a property valued at a past date for tax?
- A home first rented out. The day it was first used to produce income. See home became a rental.
- Inherited property. The date of death, where it sets a beneficiary’s cost base. See inherited property.
- A gift, or a sale not at arm’s length. The date of the transfer, for example to a family member. See family transfers.
- 30 June 2027. Once that date has passed, for property held across it. See 30 June 2027.
- A self-managed super fund. The date the fund acquired a property, or a past 30 June. See SMSF property.
Your accountant decides which date applies, and we value at the date your accountant gives you.
How does a valuer value a property at a past date?
The method is the same as for a current valuation. What changes is the evidence.
- Fix the date and the purpose. The ATO lists the valuation date, and whether a valuation is retrospective, among the details it expects a report to show.
- Rebuild the property as it was. The land, the zoning, the dwelling, its size, layout and condition on the date. Changes made since, such as an extension, a new kitchen or a subdivision, are taken out of the picture.
- Find sales from around the date. Comparable properties that sold before and around the valuation date, paying attention to when each price was agreed.
- Adjust each sale. For differences in land, building, condition and location, and for any market movement between its sale date and the valuation date.
- Cross-check and conclude. The ATO recommends a second method where possible. For a home, that might mean testing the result against how prices in the area moved.
How property is valued for CGT explains what market value means for tax.
Which evidence from around the date is used?
Market value assumes a buyer and seller who knew everything that could be known at the time, but not the future. The ATO’s guide says their prudence is judged by the state of the market at the valuation date, not with the benefit of hindsight. It also lists reliance on information from after the valuation date among the common problems it sees.
| Evidence | Used? | Why |
|---|---|---|
| Sales agreed in the months before the date | Yes | The best evidence of what buyers were paying on the day |
| Sales agreed shortly after the date | With care | They can confirm the market at the time, but not if something new was driving the price |
| A later rezoning, infrastructure announcement or price boom | No, unless known or expected on the date | A buyer on the day could not have known about it |
| The property’s own later sale price | With care | It reflects a later market and often a changed property |
| Renovations or damage after the date | No | The property is valued as it was on the date |
Records that help
An inspection today shows the property as it is now. For a past date, records of what the property was like do the work an inspection would. Useful records include:
- the contract of sale and settlement statement from when it was bought
- building plans, approvals or permits, and occupation or occupancy certificates
- invoices and dates for renovations, extensions, pools and outbuildings, both before and after the valuation date
- photos from around the date, including old sales or rental listings
- rates or land tax notices from the period
- for apartments and townhouses, strata records showing any major works
- for rented property, the lease and the rent at the time
If something cannot be found, the report states what the valuer has assumed. A clear assumption is easier for your accountant to test than an unexplained figure.
How far back can a property be valued?
As far back as reliable evidence allows. In New South Wales, for example, the NSW Government publishes bulk property sales data going back to 1990, and individual sales can be searched back to 2001. For older dates the evidence is thinner, so the valuer may need to look wider for comparable sales, and the report says so.
Sooner is still better. The ATO’s guidance is to get a market valuation of a home when it is first used to produce income, and it says you can arrange one later if necessary. Records are easier to find, and the comparable sales are fresher, when the date is recent.
Desktop or inspected for a past date?
A property cannot be inspected as it was, so records and sales evidence do much of the work. The Desktop CGT Valuation, $149 including GST, is built on them. An inspection of the property as it is now can still help, especially where the building is largely unchanged or the property is unusual or high value: the Inspected CGT Valuation is $495. Your accountant has the final say, and we tell you if we think an inspection suits better.
If your accountant asks for values at two dates, the second date goes in the same report for $149. Request a valuation with the address, the date and the reason, and see every fee on the pricing page.
We value property. We do not give tax advice. Your accountant decides which date to use.