Highlights

• The ATO's position was reported by the Brisbane Times on 30 September.

• The Treasury Laws Amendment (Tax Reform No.

• Treasury released a draft apportioning method for consultation in August, alongside the Tax Reform No.

• Valuation firms argue that real property rarely grows in a straight line.

A valuation obtained too early may be money wasted. With new capital gains rules approaching, property owners need to distinguish a defensible valuation at the relevant date from a speculative estimate prepared in advance.

What the ATO Has Actually Said

The ATO's position was reported by the Brisbane Times on 30 September. There is no need to rush out and have your property valued before June 30, 2027, an ATO spokesman said. A prospective valuation – one prepared before the specified valuation date – will not be acceptable, the spokesman said. Instead, the ATO said a retrospective valuation prepared later can be used and, in many cases, may be preferable. That is because a valuer working after the date can draw on a broader range of records and comparable sales around the relevant date. The distinction matters because the headline rule rarely tells the entire story. Timing, eligibility and supporting records can change the outcome for two people facing seemingly similar circumstances.

Why a 2027 Value Matters Under the New Law

The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 received assent on 26 June 2026. The tax guidance indicates it replaces the 50% CGT discount for individuals, trusts and partnerships with cost base indexation and a 30% minimum tax rate on capital gains. The new rules apply only to gains that accrue after 1 July 2027. In practice an asset sold after the changeover will generally have its gain split in two. The part that built up before 1 July 2027 continues to be eligible for the 50% discount where it applies. A practical decision starts with the numbers, but should not end there. Compare the likely benefit with compliance costs, the chance that assumptions change and any restrictions that apply.

The Draft Formula and Its Status

Treasury released a draft apportioning method for consultation in August, alongside the Tax Reform No. Neither the formula nor the Tax Reform No. 3 package is law yet, and no bill has been introduced. According to Treasury's draft explanatory material, the method works backwards from the eventual sale price. It applies a constant daily compounding growth rate across the whole holding period to estimate the asset's value at the end of June 2027. The explanatory material describes the method as an alternative to obtaining a formal market valuation. A policy can create an opportunity while still leaving taxpayers responsible for checking the conditions and keeping suitable evidence.

Why Valuers Say the Formula Could Cost Some Owners

Valuation firms argue that real property rarely grows in a straight line. Opteon managing director Scott Chapman told Accountants Daily on 25 September that about 2.3 million residential properties and 250,000 commercial and agribusiness properties may be affected. One observation is useful context, not a guarantee about what happens next.

Hypothetical Example: Formula Versus Valuation

For simplicity, ignore purchase costs and other cost base items. The owner held the property for about 15 years, ten of them before the changeover. Cash flow, deadlines and documentation deserve attention before any commitment.

Key Dates and What to Watch

The next milestone is the final form of the Tax Reform No. Parliament returns on 12 October, but there is no official date for the bill's introduction. Proposed rules and draft administrative guidance should be distinguished from provisions already enacted.

General information only. This article is educational and does not constitute personal financial, tax or legal advice.