Effective 1 July 2027 

Australia's CGT Reform: Clarity When It Matters Most.

Navigate 1 July 2027 Capital Gains Tax changes with confidence through defensible market valuations from CBRE, the world's largest property services firm.

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Capital Gains Tax Reform Explained

The federal government has announced the removal of the 50% CGT discount for assets held more than 12 months, effective 1 July 2027. It will be replaced by an inflation indexation method and a 30% minimum tax rate.

If you hold property across the 1 July 2027 date, you need to establish its market value at that date. This value becomes your new "baseline" for calculating future gains.

Without an independent, professional valuation, the ATO applies a statutory "straight-line" formula. This assumes your property grew in value evenly across your entire holding period, completely ignoring periods of accelerated market growth.

For many property owners, relying on the ATO formula will result in a significantly lower baseline value and a much higher tax bill upon sale.   

Why a CGT Valuation Matters

A professional CGT valuation establishes the market value of your property as at 1 July 2027.

That value becomes the baseline used to calculate future capital gains when the asset is sold.

For many property owners, relying on the ATO formula will result in a significantly lower baseline value and a much higher tax bill upon sale.  

When Do I Need a CGT Valuation?

A common misconception is that a CGT valuation must be completed on 1 July 2027. This is not the case.

A CGT valuation can be completed retrospectively after 1 July 2027, provided it establishes the property's market value as at the reform date.

However, obtaining a valuation closer to 1 July 2027 may provide access to more contemporaneous market evidence and support a stronger valuation position. As the valuation date becomes more distant, relevant market evidence and supporting documentation may become harder to obtain.

Property owners should consider their valuation requirements early to ensure appropriate records and market evidence are available when needed.

Why Choose CBRE

As the world's largest commercial real estate services and investment firm, CBRE combines national scale with local market expertise.

Our Valuation & Advisory Services team provides independent property valuations across metropolitan, regional and specialised markets throughout Australia.

Whether you own a single investment property or a complex portfolio, our specialists deliver market-informed valuations supported by rigorous analysis, research and deep sector expertise.

Partner with the world’s largest property services firm

$500B+
Annual property valuations in Australia
400+
Valuation professionals in Australia
54
Countries globally, with deep local expertise

CGT Valuations Across Every Asset Class

CBRE provides capital gains tax valuations across Australia's major property sectors.

  • Residential
  • Industrial & Logistics
  • Retail
  • Office
  • Hotels & Leisure
  • Retirement & Healthcare
  • Alternatives (incl. Self Storage, Child Care, Data Centres & Service Stations)
  • Agribusiness
  • Residential Development
  • Living Sectors
  • Going Concerns

Our specialists understand the unique drivers of value within each asset class, helping property owners establish accurate and defensible market values.

Frequently Asked Questions

  1. What is changing with Capital Gains Tax from 1 July 2027?

    From 1 July 2027, the Australian Government has announced changes to the way capital gains tax (CGT) will be calculated on eligible assets. The current 50% CGT discount for assets held longer than 12 months will be replaced by an inflation indexation method and a 30% minimum tax rate.

  2. Do I need a CGT valuation before 1 July 2027?

    No. A CGT valuation can be completed retrospectively after 1 July 2027, provided it assesses the property's market value as at the reform date.

  3. Can a CGT valuation be completed after 1 July 2027?

    Yes. A retrospective valuation can be undertaken at any point after 1 July 2027 and before the eventual disposal of the asset.

    Qualified valuers can assess historical market evidence and determine the property's market value as at 1 July 2027. While this can be completed years later, obtaining a valuation closer to the relevant date may provide a stronger evidence base.

  4. Can I obtain valuation advice before 1 July 2027?

    Yes. CBRE can provide pre-reform valuation advice, including desktop assessments, indicative value ranges and formal valuations. This can help property owners understand potential CGT impacts, assess planning options and make more informed portfolio decisions. CBRE recommends discussing your circumstances with your accountant or financial adviser alongside any valuation advice.

  5. What happens if I don't obtain an independent valuation?

    Where an independent market valuation is not obtained, the ATO may apply an alternative calculation methodology.

    For some property owners, this may result in a lower baseline value being adopted and a higher taxable capital gain when the property is eventually sold.

  6. Are CBRE valuations accepted by the ATO?

    Yes. CBRE valuations are completed by Certified Valuers who are members of the Australian Property Institute (API) and registered under relevant state and territory legislation.

  7. Can CBRE value large property portfolios?

    Yes. CBRE specialises in portfolio-scale valuation programs across multiple property sectors and geographic locations, providing a consistent approach across single assets, large portfolios and national property holdings.

  8. How long does a CGT valuation take?

    Timeframes vary depending on the asset type, location and complexity of the instruction. Your valuer will provide an estimated timeframe at the commencement of the engagement.

  9. Do I need a valuation for my family home?

    In many cases, no. A principal place of residence is generally exempt from capital gains tax.

    However, different rules may apply if part of the property has been used to generate income, rented to tenants, or used for business purposes. We recommend seeking advice from your tax adviser regarding your specific circumstances.

Speak to a Valuation Expert

Ensure your assets are accurately assessed for the upcoming CGT reform. Contact our advisors today. 

Phone
1300 407 092
Email
[email protected]

Liability limited by a scheme approved under Professional Standards Legislation. This material is general information only and is not legal, tax or financial advice. The appropriate valuation scope should be confirmed for the intended purpose and circumstances.