Why owners shouldn’t wait until July 2027 to think about their Capital Gains Tax Valuation

From 1 July 2027, significant changes to Australia’s capital gains tax arrangements will take effect. The current 50 per cent CGT discount will be replaced by an inflation-based discount, together with a minimum 30 per cent tax rate on real capital gains. The new arrangements will apply prospectively to gains accruing from 1 July 2027. 

For owners of investment, commercial and other taxable property assets, establishing reliable market value evidence at this transition date may become an important part of future CGT calculations. Treasury is continuing to develop aspects of the legislation dealing with how gains arising before and after 1 July 2027 will be apportioned. 

The FVG Two-Date Valuation Service

First Valuation Group is offering  property owners the opportunity to commission:

• A comprehensive valuation of their property at its current market value as at 2026; and
• An updated valuation effective as at 1 July 2027, at no additional fee. 

This provides two independently assessed valuation positions for one agreed fee: an understanding of the property’s value today and a formal valuation at the new CGT transition date. 

Why commission the valuation now?

As 1 July 2027 approaches, demand for Certified Practising Valuers is expected to increase significantly. A large number of property owners, accountants, solicitors, financial and SMSF advisers  may require valuations around the same effective date. 

There is a limited pool of suitably qualified and experienced valuers capable of completing detailed, defensible property valuations. If demand exceeds supply, valuation costs may rise, completion times may extend and the quality of valuations may be impacted. 

Engaging FVG now allows property owners to secure their place in the valuation program, begin assembling the required property information and completion of a valuation. Therefore, allowing decisions immediately and avoiding the expected pressure surrounding the transition date. 

More than a taxation exercise

A current valuation provides more than an estimate for future tax purposes. It gives owners an informed and independent understanding of their property’s present market position, contained within a professional legal report. 

Depending upon the property, the valuation may consider: 

Commercial property (office, industrial, retail, medical)

• Current market value;
• Passing and assessed market rental;
• Investment, yield and capitalisation rate;
• Comparable sales and leasing evidence;
• Lease terms, outgoings and tenancy profile;
• Current market conditions; and
• Factors affecting the property’s current and future performance and marketability. 

Residential property

• Current market value;
• Direct Comparison Approach;
• Summation Approach;
• Current market conditions;
• Factors affecting the property’s current and future performance and marketability.

This information may assist an owner in reviewing rental arrangements, consider a sale or transfer, assessing investment performance, restructuring ownership, managing a SMSF or planning future financial and taxation decisions. 

Greater certainty for owners and their advisors

Obtaining a valuation now gives the property owner and their professional advisory team an early indication of value. The market as we all know in Victoria has more than likely seen a decrease in value over the last two year period while the subsequent valuation, effective as at 1 July 2027, will provide a documented market-value position at the commencement of the new CGT arrangements. 

Whether you are reviewing your taxation position, managing an investment portfolio, considering a transfer or sale, or administering an SMSF, an independent valuation provides a reliable snapshot of value and provides greater confidence in future decision-making. 

Specialist property valuation advice

FVG’s team of Certified Practising Valuers have extensive experience across commercial, retail and industrial property. 

Each valuation is supported by a formal written report setting out the property details, valuation methodology and assessed value. The report can then be provided to the owner’s accountant, solicitor or financial adviser for consideration when determining the applicable taxation treatment. 

By securing this service early, property owners can ensure that the necessary work is planned well in advance, and that their updated report, effective as at 1 July 2027, receives priority completion, on such date. This clearly takes the guessing out of the equation. 

Contact First Valuation Group now to reserve your property within our 1 July 2027 valuation program – and receive two valuation dates for one professional fee. 

*The updated valuation offer would be subject to agreed terms, including no material change to the property, ownership interest, leasing position or development status. FVG provides independent property valuation advice, not taxation or legal advice. Property owners should obtain advice from their accountant or taxation solicitor concerning how the reforms apply to their circumstances. 

How to obtain a quote

Go to the FVG Property landing page (www.fvg.com.au) and complete the enquiry form. 

First Valuation Group (FVG)

Independent Property Valuers | Advisory | Transaction Management

Helping property owners make informed decisions for over 30 years.

To discuss any related property matters, please contact:

Mark Ruttner, Managing Director

0411 419 674 or mr@fvg.com.au