ATO Issues Guidance on Property Valuation Rules
The Australian Taxation Office has released guidance on how assets must be valued under new capital gains tax changes taking effect from 1 July 2027.
Updated on Nov. 8, 2026 in Commercial
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The Australian Taxation Office has released guidance on how assets must be valued under capital gains tax changes that apply from 1 July 2027. Enquiries to property valuers have risen significantly among Western Australian property investors.
Why it matters
The changes introduce a new minimum 30 per cent tax rate on gains and bring in previously exempt assets, so accurate valuations will determine how much tax investors owe. Investors holding unlisted assets must obtain formal valuations, while listed assets can use closing prices.
The new minimum capital gains tax rate is 30 per cent, applying to gains from 1 July 2027. A formal property valuation under $1 million typically starts from about $395, and the method for valuing assets without a formal valuation remains undetermined.
The players
Australian Taxation Office
The Australian Taxation Office is the federal agency responsible for administering tax laws, including capital gains tax, across Australia.
CBRE
CBRE is a global commercial real estate services firm whose Western Australian valuers have reported increased enquiries from investors.
The details
Listed and readily traded assets can be valued using the closing share or unit price on 30 June 2027. Unlisted assets, including property, require formal valuations from independent sources such as licensed valuers, and real estate agents cannot establish the 30 June valuation.
Timeline
May 2026: The capital gains tax changes were announced.
1 July 2027: The changes take effect.
30 June 2027: Reference date for closing prices and property valuations.
Roadmap
The changes extend Australia's existing capital gains tax regime by introducing a new minimum 30 per cent rate and bringing previously exempt assets into scope. The valuation requirements place greater emphasis on formal assessments for unlisted assets such as commercial and residential property.
Property investors holding unlisted assets will need formal valuations from licensed independent valuers, which typically start from about $395 for properties under $1 million. Listed assets can be valued using the closing price on 30 June 2027.
The takeaway
Commercial and property investors should begin planning valuations early, as formal assessments must be completed at or after the 1 July 2027 assessment date and must fully comply with ATO guidance.
What happens next
The capital gains tax changes take effect on 1 July 2027, with the valuation reference date falling on 30 June 2027.
Further reading
Explore more on Commercial property news and trends across Australia.
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