A CGT valuation in Melbourne provides an independent market value for your property at the exact date your accountant needs, so capital gains tax can be calculated on solid evidence rather than estimates. That date is often years in the past: the day a home was first rented, the date of a family transfer or the date someone passed away.
Property valuations for capital gains tax in Melbourne are now also tied to a new date. With the capital gains tax rules changing from 1 July 2027, the market value of a property at 30 June 2027 may affect how future gains are taxed.
This guide explains when you need a CGT valuation in Melbourne, how a retrospective property valuation works, what the 2027 changes mean, and what affects the cost of a retrospective property valuation.
What is a CGT valuation?
A CGT valuation is a formal market valuation, prepared by a Certified Practising Valuer, of a property at a nominated date. Your accountant uses it to establish a figure needed under capital gains tax law, such as a cost base or the market value of a non-arm's-length transfer.
The ATO expects market values used for tax to be reasonable and supported by objective evidence. A report that sets out the valuation date, method, comparable sales and assumptions provides that support and keeps a clear record if questions arise later.
A CGT valuation is different from an agent's appraisal, a lender's valuation or the Capital Improved Value on your council rates notice. Each serves a different purpose, and only a market valuation prepared for tax purposes is designed for this job.
When you may need a CGT valuation in Sydney
Common situations include:
A former home became a rental. Where you first use your home to produce income, the cost base may be reset to market value at that date, depending on your circumstances.
You inherited a property. In some cases, such as where the property was the deceased's main residence, the market value at the date of death becomes the beneficiary's cost base.
A property moved between related parties. For a family transfer, a sale to a family trust or another non-arm's-length dealing, market value may replace the actual price.
Original records are incomplete. A historical valuation may help reconstruct an acquisition value or the value of improvements.
A property was subdivided, a second dwelling was built or part of the land was sold. Each may call for values at particular dates.
You are planning for 1 July 2027. A market value at 30 June 2027 may be relevant to properties held at that date.
Your accountant should confirm whether a valuation is required and which date to use.
The 1 July 2027 CGT changes and why a 30 June 2027 value matters
The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 passed Parliament in June 2026. From 1 July 2027, resident individuals and trusts lose the 50% CGT discount, and indexation of the cost base takes its place. A minimum 30% tax rate applies to the post-transition part of certain gains.
Property held at 30 June 2027 is treated as sold and reacquired on that date. Growth up to 30 June 2027 keeps the existing rules, including the 50% discount, when the property is eventually sold, while growth after that date falls under the new rules. Owners can use either the market value at 30 June 2027 or an apportioning method, and can choose when they actually sell.
The apportioning method spreads growth evenly over the years of ownership. Melbourne's market has not moved evenly. Some suburbs saw strong growth in some periods and flat or falling values in others, and houses and apartments have often moved differently. A well-supported 30 June 2027 market value lets an accountant compare the two approaches using real evidence.
Worth noting:
Companies and superannuation funds keep the existing CGT settings
Certain gains on new residential dwellings are excluded where the discount is chosen
Further legislation, including details of the apportioning method, was still being finalised in late 2026
Valuers do not give tax advice. Your accountant should decide which properties would benefit from a 30 June 2027 valuation.
How a retrospective property valuation works in Melbourne
A retrospective property valuation assesses what a property was worth at a past date. The valuer considers the property as it was then and the market as it stood then, ignoring later renovations and later price movements.
For a Melbourne property, the valuer may consider:
Sales of comparable properties in the months around the valuation date
Condition, accommodation and improvements as they existed at that date
The planning zone and any overlays, such as a Heritage Overlay, applying at the time
Owners corporation matters, including fees, special levies and cladding works, for apartments
Any lease in place on the valuation date
Interest rates, supply and buyer demand in that period
Melbourne's diversity makes this careful work. A period home in Kew, a Southbank apartment and a new house in Tarneit may each have followed a different path over the same years.
The CGT valuation process
1. Confirm the purpose and valuation date
Your accountant identifies the CGT event and the date that applies.
2. Share property information
Permits, plans, renovation invoices and dated photographs help the valuer understand the property as it was.
3.Inspection or desktop assessment
The valuer inspects where appropriate. For some historical or multi-property instructions, a desktop assessment may be suitable. The valuer will confirm the right approach.
4. Historical market research
The valuer analyses comparable sales and market conditions around the valuation date.
5. Report
You receive an independent report with the market value, date, method, evidence and assumptions, ready for your accountant.
Which CGT valuation do you need?
| Situation | Valuation Date | What the report supports |
|---|---|---|
| Former home now rented |
Date first used to produce
income
|
Reset cost base, where eligible |
| Inherited property | Date of death |
Beneficiary's cost base, where
eligible
|
|
Transfer to family or a
family trust
|
Date of transfer | Market value substitution |
|
Incomplete purchase
records
|
Date of acquisition | Reconstructed cost base |
|
Investment property held
long term
|
30 June 2027 |
Market value choice under the
2027 rules
|
| Sale being planned | Current date | Pre-sale CGT planning |
Why your rates notice is not a CGT valuation
Melbourne owners sometimes ask whether the Capital Improved Value on their council rates notice can be used for CGT. The Valuer-General Victoria values every property each year as at 1 January for rating and land tax. These are mass statutory valuations, not individual market valuations at the date of a CGT event.
A CIV may also be months old by the time the notice arrives, and it will not reflect the specific condition of your property at the date your accountant needs. For CGT, an individual market valuation at the correct date is the safer evidence.
Example: a Brunswick house first rented in 2015
Consider an owner who bought a Victorian house in Brunswick in 2006, lived there until 2015, then moved to Geelong and rented the Brunswick house out. They plan to keep it for several years.
Their accountant may ask for a retrospective valuation as at the 2015 date it was first rented, which may set the cost base. They may also recommend a 30 June 2027 valuation to compare against the apportioning method.
For the 2015 valuation, the valuer would analyse house sales in Brunswick, Coburg and Fitzroy North from around that time. They would also rely on photographs and records to establish the house's condition before a 2019 extension. The 2027 valuation would instead eflect the extended house and the market in mid-2027.
How much does a retrospective property valuation cost in Melbourne?
The cost of a CGT or retrospective property valuation depends on:
Property type: a standard apartment is usually simpler than a large house, a heritage home or a commercial property
How far back the date is: older dates usually involve more historical research
Inspection: a full inspection takes longer than a desktop assessment, where one is suitable
Number of properties: portfolios needing 30 June 2027 values can be quoted together
Location: regional Victorian properties may involve travel
ValueMax confirms a fixed fee before any work begins.
What you receive
Each ValueMax CGT valuation report includes:
The market value at the date your adviser specified
The purpose and basis of value
Comparable sales evidence and analysis
The method and reasoning behind the figure
Clearly stated assumptions and limitations
The signing Certified Practising Valuer's name and credentials
Frequently asked questions
Will the ATO accept a retrospective valuation?
The ATO expects market values to be reasonable and backed by evidence. A retrospective valuation by a qualified, independent valuer, using sales evidence from the valuation date, is a widely used way to provide that evidence.
Should I get a 30 June 2027 valuation for every property?
Not necessarily. The apportioning method is an alternative that does not need a valuation. Whether a market valuation is worthwhile depends on the property and your tax position, so ask your accountant first.
How far back can a property be valued?
Retrospective valuations can be prepared for dates many years ago, as long as enough sales evidence and property information exists for that period.
Can I use an agent's appraisal for CGT?
An agent's appraisal is an opinion of likely selling price, usually for a current sale. It is generally not prepared to the standard expected for a historical tax valuation.
Does ValueMax value property in regional Victoria for CGT?
Yes. ValueMax prepares CGT valuations for residential, commercial and industrial property across Melbourne and regional Victoria.
Need a CGTvaluation in Melbourne?
For an independent CGT valuation, whether retrospective, current or as at 30 June 2027, contact ValueMax Property Valuers for a fixed quote across Melbourne and regional Victoria.
