Capital Gains Tax changes: Why property valuations will be more important than ever
The Australian Government’s Capital Gains Tax (CGT) reforms, due to commence from 1 July 2027, are expected to be the biggest changes to the CGT system in more than 25 years. While accountants and financial advisers will help property owners understand the tax implications, one thing is already becoming clear – accurate property valuations will play a critical role.
Under the proposed transitional arrangements, many property owners who purchased assets before 1 July 2027 may need to establish the market value of their property at that date. An independent valuation can provide an important record that may be relied upon when calculating future capital gains, depending on individual circumstances and the final legislation.
For owners of investment properties across Culburra Beach, Callala Bay, Callala Beach, Orient Point and the wider Shoalhaven, obtaining a professional valuation from an experienced Certified Practising Valuer can provide confidence that the property’s value has been assessed independently and in accordance with recognised valuation standards.
At Morton Property Valuation, we have extensive experience valuing residential, rural commercial and lifestyle properties throughout the NSW South Coast. Whether you’re planning ahead, restructuring your investments or simply want to understand the current value of your property before the 2027 changes take effect, we’re here to help.
As The Sydney Morning Herald’s Money expert Neil Whitaker recently explained, accurate property valuations that use reliable sales evidence will be important in managing future tax implications and benefits of the changes. Property investors don’t need to rush out and get a valuation completed as soon as possible, and they should also keep in mind that property valuations can be legally backdated. However the longer the valuation takes place after 2027, the harder it can be for the valuer to understand your needs and find interpret a historical market. Generally, the sooner you can have your investment property valued as at 1 July 2027, the easier it will be find an accurate and beneficial cost base on which CGT can be calculated for your circumstances.
Similarly, the ATO itself says valuations by a Certified Practising Valuer will also be seen as “more credible than those provided by someone who isn’t a propessional valuer, for example a real estate agent.”
If you think the upcoming CGT changes may affect you, it’s worth speaking with both your accountant and an independent property valuer well before the new rules commence. Planning ahead today could make future tax calculations much simpler.
This article provides general information only and should not be relied upon as taxation or financial advice. Property owners should seek advice from their accountant or financial adviser regarding their individual circumstances.