Capital gains tax valuations, dated to the day the law says.
A CGT valuation establishes a property’s market value at a date fixed by the tax legislation — the day a main residence first produced income, the day a related party transfer occurred, or the day an owner died. The ATO does not simply accept a number: it reviews whether the valuation was objective, evidenced, prepared for the right provision and dated correctly. A valuation by a professional valuer, with its methodology and comparable sales set out, is what makes the figure defensible.
The ATO reviews the process, not just the figure
Where market value is not specially defined or qualified in a provision, it takes its ordinary meaning — and the principles that establish that meaning come from case law and the International Valuation Standards Council. In some cases the meaning is modified by Subdivision 960-S of the Income Tax Assessment Act 1997.
The valuation must be as at the date the legislation specifies. A prospective assessment will not be considered reasonable or acceptable, and a valuation prepared for one provision does not automatically serve another.
The ATO’s stated expectations are that the valuer adopts the most relevant methodology for the available data, uses a secondary method as a cross-check where possible, states all assumptions, and makes impartial judgments about the reliability of inputs. On review it commonly asks for the report and the instructions given to the valuer.
Responsibility for the reported figure stays with the taxpayer. Where a valuation over- or under-states value and tax is underpaid, interest charges apply, and engaging someone who is not an appropriately qualified valuer raises the risk of penalties.
Source: ATO — Market valuation for tax purposes and Market valuation of assets. General information, not legal or tax advice.
Your accountant preparing the return, and the ATO if the position is later reviewed. Because review focuses on process, the report is written so a reviewer can follow the reasoning from evidence to conclusion.
Common questions on CGT valuations
Can a valuation be backdated?
It can be prepared as at a past date — that is a retrospective valuation, and it is ordinary professional work. What it cannot be is prospective: the ATO requires the valuation to be at the date specified by the legislation.
When do I need one?
The common residential triggers are a main residence that starts producing income, a transfer between related parties, and an inherited property sold outside the two-year window. Your accountant will identify the provision; the valuation supplies the value.
Will the ATO accept an online estimate?
An automated estimate has no inspection and no professional opinion attached. The ATO’s guidance emphasises objective evidence and a documented method, and states that valuations by professional valuers are more credible than those by someone who is not one.
What makes a valuation fail on review?
Most often unsupported assumptions, a methodology that does not suit the available data, a missing or wrong valuation date, or a report too thin for an independent reviewer to follow.
Do you value part interests?
Yes. The interest being valued is stated in the report — whole of property, a fractional interest, freehold or leasehold, with or without a tenancy in place.
How long does it take?
Reports are delivered in 3–5 business days from inspection. Retrospective valuations can take longer where documentary evidence about the property’s past condition has to be assembled first.
Where CGT questions usually lead next
Market value, evidence standards and every deadline, state by state.
Retrospective valuations for probate, distribution and the CGT cost base.
Market value at 30 June, and the evidence an auditor will accept.
Single expert rules, joint instruction, and how the report is tested.