Don't book your 1 July 2027 CGT valuation yet: what to record now instead
Valuers are taking bookings, but the ATO says a 1 July 2027 valuation shouldn't be obtained early. Here's what the new CGT rules mean for property investors, and the records worth getting in order now.
From 1 July 2027, the way capital gains tax works on investment property changes. For anything you own before that date, the property's value at 1 July 2027 becomes the dividing line between the old rules and the new ones. So it's no surprise valuation firms are already taking bookings.
The ATO's advice is to hold off. In guidance published on 19 October 2026, it said taxpayers don't need a valuation in place on 1 July 2027 and shouldn't get one before that date, because a valuation can't predict the market on a future day (ATO, 19 Oct 2026).
Here's what that means, and what's worth doing now instead.
What changes on 1 July 2027
The first stage of the reform is law (the Treasury Laws Amendment (Tax Reform No. 1) Act 2026). According to the ATO (ATO, CGT reform, 13 Oct 2026):
Indexation replaces the 50% discount for resident individuals, trusts and partnerships, on gains that accrue from 1 July 2027. Your cost base is adjusted for inflation instead.
A 30% minimum tax applies to individuals on certain net capital gains that accrue from 1 July 2027.
Gains up to 30 June 2027 stay under the current rules, including the 50% discount where you're eligible.
The main residence exemption isn't changing.
Some new residential dwellings and affordable housing assets can stay under the current rules.
Your 2026–27 return isn't affected. The first return that could be is 2027–28.
Why the 1 July 2027 value matters
For a property you hold before 1 July 2027, the ATO explains that it's treated as if you sold it just before that date and bought it back on the day. The gain or loss on that deemed sale isn't taxed then. It's deferred until you actually sell. The market value at that point does two jobs: it closes off the old-rules gain, and it becomes the starting cost base for the new-rules gain (ATO, 19 Oct 2026).
Instead of a valuation, you may be able to use an apportionment (formula) method. The ATO says the government is still developing it, and guidance will follow once it's enacted.
What the ATO says about valuing early
A valuation reflects one date. A report dated before 1 July 2027 isn't a value at 1 July 2027.
Guidance is coming in stages: how to work out market value for different assets, which professionals to consider, and what documents and records you'll need.
Most investors won't need it for a while. The ATO says most people won't need to use the valuation method in a return before 2027–28, which is lodged from 1 July 2028, and then only if they sell or have another CGT event in 2027–28 (ATO, 13 Oct 2026).
Planning ahead is sensible. Paying now for a valuation dated in 2026 or early 2027 isn't what the ATO is asking for.
What to do now: get your cost base records in order
The ATO's current advice is to keep the records you already need: when you acquired each property, what you paid, and any changes to its use or ownership. Whichever method ends up applying, these are the records that make the numbers work. Gather:
Purchase documents: contract, settlement statement and the contract date. The contract date also matters for the new negative gearing rules.
Buying costs: stamp duty, conveyancing and legal fees, and buyer's agent fees.
Capital improvements: invoices for renovations, extensions and other capital work, separate from repairs.
Ownership changes: each owner's share, and any transfers between spouses or into a trust or company.
Use history: periods you lived in the property and periods it was rented.
Deductions you've claimed for capital works, because they can reduce your cost base. Your accountant or depreciation schedule will have these.
New to the term? Our guide to what a cost base is and why it matters covers the basics.
A simple timeline
Now to June 2027: gather the records above for every property, and watch for the ATO's staged guidance and the formula method.
Before 1 July 2027: talk to your accountant about which method suits each property.
From 1 July 2027: if you choose a valuation, get one as at 1 July 2027 and keep the report.
2027–28 return: the value is needed only if you sell, or have another CGT event, that year.
How PropKeeper helps
PropKeeper keeps the records behind your cost base in one place, property by property:
Record each property's details, ownership stakes and, for new builds, construction.
Store contracts, settlement statements and invoices in the document vault against the right property.
Link bills and bank transactions to each property, so your spending history is easy to follow.
Give your accountant free, read-only access to your records and Tax Report. See For accountants.
When the ATO's guidance arrives, your records will already be in order. Start your free 30-day trial, no card needed. See pricing.
This article is general information only, not financial or tax advice. The CGT rules are still being finalised. Speak to a registered tax agent or adviser about your situation before acting.
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