Do I Need a Property Valuation for Capital Gains Tax?

If your accountant has mentioned getting a property valuation for Capital Gains Tax (CGT), you may be wondering why a valuation is needed — particularly if you aren't planning to sell the property right now.

A property valuation can become relevant when the CGT rules require the market value of a property to be established at a particular date.

Not every property owner needs a valuation, and the correct date will depend on your individual circumstances. Your accountant or tax adviser should determine whether a market valuation is required and confirm the relevant valuation date.

Once that has been established, an independent property valuer can determine the property's market value at that date.

When might a property valuation be required for CGT?

There are several circumstances where market value may become relevant to the tax treatment of a property.

These can include situations involving:

• a property that was previously your main residence and later became an investment property
• inherited property
• property acquired or transferred in circumstances where market value is relevant
• retrospective or historical CGT calculations
• changes in ownership or use of a property
• other circumstances where your accountant requires an independent market value at a specific date.

The tax treatment can differ significantly depending on the circumstances, which is why the valuation date should come from your accountant or tax adviser rather than the valuer deciding it for you.

What date should my property be valued at?

This is one of the most important pieces of information required before a CGT valuation begins.

A CGT valuation isn't necessarily based on today's market value.

Your accountant may require the property's market value at a historical date — sometimes many years ago.

For example, the relevant date could relate to a change in the property's use, an inheritance, a transaction or another event relevant to the property's tax treatment.

Quantum Valuation can determine the market value at the required date once that date has been confirmed by your accountant or tax adviser.

What if I need to know what the property was worth years ago?

That's known as a retrospective property valuation.

A retrospective valuation determines the market value of a property at a specified date in the past.

The valuer researches market conditions and comparable property transactions from around the relevant period and considers the property as it existed at that time.

This means the valuation isn't simply today's value adjusted backwards.

Read more: What Is a Retrospective Property Valuation for Capital Gains Tax? →

Can I just use an online estimate or real estate appraisal?

Online property estimates and real estate agent appraisals can be useful in some circumstances, but they are different from an independent property valuation.

A formal valuation is prepared by a qualified property valuer who considers the property, relevant market evidence and the appropriate valuation methodology before providing an independent opinion of market value.

Where market value is required for CGT purposes, ask your accountant or tax adviser what valuation evidence is appropriate for your circumstances.

What does a CGT property valuation include?

The exact scope will depend on the property and required valuation date.

A valuer may consider factors such as:

• property location
• land size and characteristics
• improvements and buildings
• property condition and features
• comparable sales evidence
• historical market conditions where applicable
• planning and zoning information where relevant
• other property-specific factors affecting market value.

The resulting report explains the basis of the valuation and provides an independent assessment of market value at the required date.

What information should I give the valuer?

Usually, the best place to start is with:

1. The property address
2. The required valuation date

If the valuation is retrospective, information about the property as it existed at that time may also be helpful.

This could include old photographs, floor plans, renovation information, previous sales documents or details of improvements made to the property.

If you don't have all of this information, that's okay. The valuer can advise what is relevant once the property and valuation date are known.

What about the CGT changes from 1 July 2027?

Australia's Capital Gains Tax arrangements are changing from 1 July 2027, including transitional arrangements for gains accruing before and after the commencement of the new rules.

For some property owners, establishing property value at a relevant date may therefore become an important consideration.

Whether this applies to you will depend on your individual circumstances and should be discussed with your accountant or tax adviser.

Read our guide: Capital Gains Tax Changes from 1 July 2027 →

CGT property valuations in Sydney & surrounding regions

Quantum Valuation provides independent property valuations for Capital Gains Tax purposes throughout Sydney & Surrounding Regions.

Principal Valuer Ryan has more than 12 years of valuation experience and works directly with property owners, accountants and tax advisers requiring current or retrospective property valuations.

If your accountant has told you that you need a property valuation, send us the property address and required valuation date and we can advise you on the valuation process.