CGT valuation questions,
answered plainly.

A valuation is not required for the 2027 CGT changes, but it may be useful. The law allows either the market value at 30 June 2027 or an apportioning method to split a later gain. A valuation may help where the value of a private business, or shares or units in one, at that date matters. Your accountant or tax adviser decides which suits you.

From 1 July 2027 the 50% CGT discount is replaced, for gains that build up from that date, by cost base indexation and a minimum 30% tax on certain capital gains. Growth up to 30 June 2027 keeps the old treatment, including the 50% discount, when the asset is eventually sold. The ATO says these measures are now law.

The discount change affects individuals, trusts and partnerships. The minimum 30% tax applies to Australian resident individuals. Your accountant confirms how it applies to gains received through a trust or partnership. Companies never had the 50% discount, so that part does not change for them.

No, a company never had the 50% CGT discount, so the discount change does not touch the company itself. If you or your family trust own shares in the company, those shares can be caught by the new rules. A company that holds assets bought before 20 September 1985 should ask its adviser about the separate rule for those assets, which can apply to any owner.

No, a 30 June 2027 valuation should not be done before that date. The ATO said in October 2026 that a valuation for that date should not be obtained before it, because a valuation can't be forward-looking. You can book and pay now at 10% off, and we value the business once the date has passed.

Which one suits you is a tax decision for you and your accountant or tax adviser. A market valuation looks at what the actual business was worth on 30 June 2027, while an apportioning method is a calculation. The ATO said in October 2026 that the apportioning method was still being developed, and the choice is made with the tax return for the year the asset is actually sold.

Not necessarily, but a trust's assets held at the end of 30 June 2027 are generally treated as sold and bought back at that date. The amount used is market value just before 1 July 2027, or an apportioning method if the trustee chooses it. Whether the rule applies to your trust depends on its beneficiaries and its assets, which your accountant works out, and the rules may change if the Tax Reform No. 3 Bill passes.

Often, because giving shares away is still a CGT event and you are generally treated as receiving their market value at the time of the transfer. The person receiving the shares usually starts their own cost base at market value too, so one value does two jobs. Your accountant or tax adviser decides how the rules apply.

Where a value is needed, the valuation date is the date of death. It matters most clearly when the deceased acquired the asset before 20 September 1985, because the beneficiary's cost base starts at its market value on the day they died. If they acquired it on or after that date, the cost base generally carries over from the deceased. The executor and their adviser decide what applies.

Not always: if your aggregated turnover is clearly under $2 million, the net asset value test may not matter for you. Where the $6 million maximum net asset value test, or the 80% test for shares or units, decides the outcome, market values are needed and a valuation is the usual way to support them. Your accountant or tax adviser decides whether you qualify.

For the sale itself you may not, because the price agreed with an unrelated buyer is usually what goes into the CGT calculation. A valuation helps where your accountant needs market values for the small business concession tests, or support for how the price is split between goodwill and other assets.

Often, because a transfer to a related entity is generally a CGT event, and where the parties are not dealing at arm's length and the price differs from market value, market value can be used instead. A rollover may defer the tax, but values are often still needed for duty, records and the deal itself. Your accountant or tax adviser decides the tax treatment.

The market value on the day you stop being an Australian resident is useful either way. Shares in an Australian private company or units in a unit trust are often treated as sold at market value that day, unless an individual chooses to disregard those gains and losses. Your accountant or tax adviser decides your residency date and whether to make the choice.

Yes, retrospective valuations are common for CGT, for example at a date of death, at 8 May 2012 for individuals who were foreign or temporary residents, or at 20 September 1985. The valuer uses only what was known or reasonably foreseeable at that date. How firm the number is depends on how much reliable evidence from that time still exists.

Market value is the price a willing but not anxious buyer and seller would agree, both well informed, in an arm's length deal. It is tied to one date and uses only what was known or reasonably foreseeable at that date. It is judged by what the market as a whole would pay, so a premium that only one particular buyer would pay is generally not counted.

Not always. Market value assumes a hypothetical sale to a typical informed buyer, with no rush on either side. A real sale can come in higher or lower because of a particular buyer, deal terms or timing.

Usually not: where a CGT rule asks for market value, book value is only a starting point. Goodwill you built yourself is often not on the balance sheet at all, and older assets may be recorded at cost. A business carried at a small figure in the accounts can be worth much more on the open market, and the reverse can happen too.

Not automatically, because a price agreed between related parties may not be at arm's length. In many CGT situations market value replaces the actual price, which is why a valuation is often needed. Whether and how that applies to you is for your accountant or tax adviser.

Yes, goodwill is a CGT asset, and its market value counts even if it is not on your balance sheet. It is usually valued by valuing the whole business as a going concern, then deducting the market value of the identifiable assets. Goodwill that comes from an owner's own skills or reputation may not transfer to a buyer, which the valuation takes into account.

Not always. A minority holder usually cannot set dividends, appoint the board or force a sale, and private company shares may be hard to sell, so depending on the purpose and the facts a discount may apply. A controlling holding can be worth more per share. The report explains the reasoning.

The trust's business and net assets are valued first, then the units held, applying the rights set out in the trust deed. Different classes of units, unpaid amounts, loans from unitholders and transfer restrictions can all change what a particular parcel is worth.

Possibly, depending on their valuation experience, their independence and the purpose. Some accountants prefer an independent valuer, so the person advising on the tax is not also the person setting the value. That split can make both pieces of work easier to support.

No law says who must value a business for CGT, and the ATO says there is no formal admissions board in Australia for business valuers. Its guidance says acceptability usually depends on the process followed rather than who conducted it, though some tax purposes require a particular type of valuer. Look for business valuation experience, independence, a fee not linked to the result and a signed report.

The ATO decides for itself whether to accept any valuation, so no valuer can promise acceptance. Its guidance says acceptability usually depends on the process followed rather than who conducted it, though some tax purposes require a particular type of valuer. Our reports set out the purpose, the date, the evidence, the method and the judgement so the figure can be followed.

The law does not stop you, but the ATO says the taxpayer remains responsible for the valuation, so a self-valuation carries the risk of an incorrect return. Its guidance says acceptability usually depends on the process followed.

A CGT valuation report names the purpose, the exact asset and interest, the date and the standard of value, then explains the method, why it was chosen, and a cross-check. It shows the earnings, adjustments and evidence, and states assumptions and limitations. It ends with a single value, the valuer's identity, an independence statement, a signature and the issue date.

No, we do not give tax advice. We establish market value for the asset, date and purpose your adviser gives us. Whether a CGT rule applies, and the tax result, are for your accountant or tax adviser.

Yes, we have no stake in the outcome and do not set out to produce a high or a low number. Conflicts are checked before we accept an engagement, and the fee never depends on the value concluded. Every report is reviewed before it is issued and signed by the valuer responsible, and we follow the guidelines of APES 225 Valuation Services.

A CGT business valuation costs $1,495 + GST for a business with annual revenue under $1 million. Larger businesses are priced by revenue band, and revenue of $10 million or more is a custom fixed-fee quote. Your fee is confirmed in writing, with the scope, before you pay.

Booked and paid now, a 30 June 2027 valuation costs $1,345.50 + GST for revenue under $1 million, instead of $1,495 + GST. Every revenue band is 10% off when booked now, and the fee is locked in writing in your engagement terms. The work starts after 30 June 2027.

No, the fee is set by the annual revenue of the business and fixed in writing before you pay. It never depends on the value we conclude.

Usually three years of financial statements and tax returns, management accounts to the valuation date, and ownership documents such as the share register, constitution, trust deed or partnership agreement. Leases, key contracts and records from around the valuation date matter too. If something is missing, the report says so.

Keep management accounts and a balance sheet at 30 June 2027, the customer list, contracts, the pipeline of quoted and booked work, staff details, leases and the share register or unit register. They are easy to capture at the time and hard to rebuild later.

You choose your revenue band and see your fee, then we confirm in writing what is being valued, at which date and for which CGT purpose, with the fee and delivery date, before you pay. You accept your engagement terms and upload your financial statements through a secure link. A valuer does the work, and the report is reviewed and signed by the valuer responsible.

Your delivery date is confirmed in writing with your engagement terms, before you pay. It runs from when we have received payment and all the information we need.