What investors need to know about CGT valuations in Sydney and Melbourne
Selling an investment property in Sydney or Melbourne comes with a key question: how does the ATO determine the market value for Capital Gains Tax (CGT) purposes? An independent CGT valuation by a certified property valuer provides an objective, defensible assessment of your property's market value and is essential for accurate tax reporting.
When you need a CGT valuation
A CGT valuation is typically required when selling an investment property, changing a property's use from main residence to rental, inheriting property, or where original purchase records are incomplete or unreliable.
The valuation date is critical and needs to look at whether it's the current date, the day you first rented a property, or a historical date when records are missing. The property valuer looks at comparable sales evidence around that specific date, not today's market. This is called a retrospective property valuation, also known as a back-dated valuation.
How CGT valuations work in Sydney and Melbourne
A CGT valuation assesses market value using comparable sales, local trends, property condition, and location factors like school zones, transport, and land characteristics.
Sydney example: A Parramatta apartment valuation controls for floor level, view, car parking, and strata condition when selecting comparable properties which have sold within a relatively close time period.
Melbourne example: A Brunswick terrace or Southbank unit valuation uses nearby sales with clear time and quality adjustments explained.
The valuer presents comparable property sales in a report that meets ATO expectations: valuation date, methodology, sales evidence, and adjustments in plain English.
Why investors use certified property valuers
Online estimates and agent appraisals are too generic for CGT tax purposes. The ATO requires valuations based on objective, supportable evidence and documented reasoning.
Using a professional valuer reduces the risk of ATO disputes, penalties, or amended assessments.
Certified Practising Valuers in Sydney and Melbourne specialise in ATO-compliant reports using recognised methods such as Direct Market Comparison which is a comprehensive comparable sales analysis ensuring a defensible valuation report is delivered.
How CGT valuations support investment decisions
A CGT valuation gives your accountant the evidence needed to calculate the capital gain, apply the correct cost base, and claim the 50% CGT discount for assets held over 12 months.
It also helps investors decide on timing: whether to sell now, hold longer, or stage disposals for better after-tax outcomes.
In Sydney and Melbourne, where price cycles differ by suburb and dwelling type, valuations help compare properties objectively and inform refinancing and portfolio decisions.
Our CGT valuation services
Our certified valuers provide API-accredited CGT reports across Greater Sydney and metropolitan Melbourne:
CGT valuations for Sydney and Melbourne investment property (houses, units, townhouses)
Retrospective valuations for past dates (first-rented, inheritance, renovation milestones)
Current market valuations for near-term sales or strategy planning
ATO-compliant reports ready for your accountant to use directly
Valuation advice for investors
Update valuations regularly when markets shift or major changes occur—refinancing, use changes, renovations, or planned sales.
A professional CGT valuation is part of your broader investment strategy, helping you comply with ATO rules, avoid overpaying tax, and base decisions on accurate suburb-level insights rather than generic estimates.
Contact us for a free Capital Gains Tax Property Valuation today
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