How Capital Gains Tax (CGT) Affects Property Owners in 2025
How CGT Affects Property Owners in 2025
Whether you're selling an investment property or transferring assets, understanding how Capital Gains Tax (CGT) in Australia works is crucial. In 2025, evolving market conditions and Australian Taxation Office (ATO) scrutiny make it more important than ever to ensure your property is accurately valued. Here's what you need to know.
What Is Capital Gains Tax (CGT)?
Capital Gains Tax is the tax you pay on the profit made from selling almost any asset, including real estate. In Australia, CGT applies when you sell property that’s not your primary place of residence (PPR) —like an investment property, inherited home, or commercial real estate. It is important to consult a tax professional in Sydney or Melbourne to discuss your individual requirements.
When Does Captial Gains Tax Apply to Property?
You’ll likely face CGT if you:
Sell a rental or investment property
Transfer property into a trust or company
Inherit a property that isn’t your primary home
Go through a property settlement (e.g. in a divorce)
The ATO calculates your capital gain by subtracting your property’s cost base (original purchase price plus improvements and expenses) from its sale price.
Why a Certified Property Valuation Matters
An independent, ATO-compliant property valuation helps establish the fair market value of your asset at a specific date (e.g. date of acquisition or inheritance). This is critical for:
Minimising CGT liability
Ensuring ATO compliance
Providing legal documentation in case of audits or disputes
How CGT Affects Property Owners in 2025
With interest rates falling and the market shifting, property prices are rising again in many areas. This could mean higher capital gains for long-held investments, and a bigger tqx bill.
In 2025, we’re also seeing:
Increased ATO attention on investment property sales in Sydney and regional New South Wales
More homeowners unlocking equity through property sales
Growing demand for certified valuation reports during tax time in Sydney and Melbourne
How ValueMax Can Help
At ValueMax, we provide certified property valuations from independant property valuers that meet ATO standards—helping you reduce uncertainty and manage your CGT liability. Our valuers are members of and certified by the Australian Valuers Institure (AVI) and we work with property owners, accountants, and solicitors across Melbourne, Sydney, and regional Victoria/NSW.
You can read more about the serivces we provide, including CGT and other tax matters here
