CGT valuations for inherited property in Sydney and Melbourne

Inheriting a property in Sydney or Melbourne can be both an opportunity and a tax complication. When the time comes to sell, the Australian Taxation Office (ATO) expects you to calculate capital gains tax (CGT) using a defensible market value at a specific date which can be the date of death or another CGT event.

A certified CGT valuation for inherited property provides that point-in-time value and helps ensure you do not pay more CGT than required.

When you need a CGT valuation for inherited property

A CGT valuation is typically required when:

• You inherit a property and later decide to sell it.

• The property was originally a main residence, but you rent it out before selling.

• Records about the original purchase are missing, unclear, or pre‑1985 and special rules apply.

In Sydney and Melbourne, inherited homes and units are often held for several years before sale, which makes contemporaneous evidence at the valuation date critical. A retrospective valuation reconstructs market value at the relevant date using comparable sales around that time, not today’s prices.

How CGT valuations work for deceased estates

A deceased‑estate CGT valuation assesses the property’s market value at the date of death (or another relevant date under the tax rules). The valuer considers:

• Comparable sales in the same suburb or immediate area at that time.

• Land size, zoning, development potential, and overlays.

• Building condition and improvements as they existed at the valuation date.

For a freestanding house in Melbourne’s inner north or a terrace in Sydney’s Inner West, this might mean using sales in the same street or adjoining blocks, with clear time and quality adjustments. For apartments in Parramatta or Southbank, floor level, orientation, parking, and strata health must be controlled for in the evidence table.

Why executors and beneficiaries should use a certified valuer

Executors and beneficiaries often rely on rough appraisals or online estimates; however, the ATO expects valuations used for CGT to be objective, supportable, and documented. A certified practising valuer provides:​

• Independent, ATO‑aligned market value at the required date.

• A written CGT valuation report that your accountant can use directly.

• Reduced risk of disputes, amended assessments, or penalties.​

Our valuers provide retrospective CGT valuations for inherited property across Greater Sydney and metropolitan Melbourne, covering houses, townhouses, and units.