Reviewed 24 October 2026. General information, not tax advice. Valuation Day is our name for 30 June 2027, not an official term.
Does the 30 June 2027 change affect you?
It depends on who holds the asset, what it is, and whether it will still be held after 30 June 2027. Capital gains tax (CGT) is the tax on a gain when you sell an asset or another CGT event happens to it. From 1 July 2027, the 50% CGT discount for individuals and trusts no longer applies to the part of a gain that builds up from that date, with some exceptions (ITAA 1997 s 115-100; ATO).
To split a gain at that date, an asset you or your family trust still hold is generally treated as sold at market value just before 1 July 2027 and bought back (s 112-155, s 112-165). Nothing is actually sold and no tax is due on the day; the part of the gain up to 30 June 2027 can still get the 50% discount when you later sell (s 112-160, s 112-170). Market value means, broadly, the price a willing buyer and a willing seller would agree at arm's length (ATO valuation guide).
The checker never tells you that you are exempt or that you owe tax: only your accountant or tax adviser can. What replaces the discount is in what changes on 1 July 2027.
Check in five questions
Answer for one asset at a time; the fifth question appears only for a home or property you hold yourself.
- Who holds the asset?
Me (on my own or jointly) · A family trust · A company · A super fund · Not sure. If a company is trustee of your family trust, choose the family trust (ITAA 1997 s 960-100). In a partnership, each partner makes their own gain on their interest (s 106-5), so choose the kind of partner you are.
- What is it?
A business · Shares or units · An investment, holiday or commercial property · Your home · Something else. If a company runs the business and you or your trust own its shares, choose shares or units.
- Will it still be held after 30 June 2027?
Yes · No, it will be sold or transferred before 1 July 2027 · Not sure yet. For CGT, a sale generally happens when the contract is signed, not at settlement (ITAA 1997 s 104-10(3)).
- Did its current holder buy or otherwise acquire it before 20 September 1985?
Yes · No · Not sure. Assets acquired before then are pre-CGT assets (ITAA 1997 s 149-10). If you inherited it, ask your accountant which date counts.
- Has it been your main residence for the whole time you have owned it?
Yes, the whole time · Part of the time, or part of it has earned rent or been used for business · No, never · Not sure. Your main residence is the home you live in. Asked only about a home or property you hold yourself.
What can your answers mean?
Each result explains the rule that may apply, never a verdict, and ends with a next step. In short:
- A business (you or your family trust): Its CGT assets, such as goodwill, are generally treated as sold at market value just before 1 July 2027 and bought back (ITAA 1997 s 112-155, s 112-165).
- Shares or units (you or your family trust): Generally treated as sold at market value just before 1 July 2027 and bought back, private company shares included (ITAA 1997 s 112-155, s 112-165).
- Investment, holiday or commercial property (you or your family trust): Generally treated as sold at market value just before 1 July 2027 and bought back (ITAA 1997 s 112-155, s 112-165); new residential dwellings that meet the law's tests, and affordable housing, have their own rules (s 115-102, s 115-125).
- Your home, your main residence the whole time: A gain is generally exempt (ITAA 1997 s 118-110), and the ATO says the main residence exemption is not changing.
- Your home, but not always your main residence, or partly rented or used for business: Only part of a gain may be exempt (ITAA 1997 s 118-185, s 118-190), so the deemed sale may matter for the rest.
- A home held in a family trust: The main residence exemption is written for individuals (ITAA 1997 s 118-110), so the trust's deemed sale may apply (s 112-165).
- A company's own assets: Outside the main deemed sale (ITAA 1997 s 112-155, s 112-165), but shares in the company held by you or your family trust can be covered.
- Acquired before 20 September 1985 and still held: It has its own deemed sale at market value just before 1 July 2027, so the part of a gain that builds up from then falls under CGT (ITAA 1997 s 112-175).
- Sold or transferred before 1 July 2027: The 30 June 2027 deemed sale does not apply, and the ATO says nothing changes for assets bought and sold before 1 July 2027.
- Something else: Almost any asset is a CGT asset (ITAA 1997 s 108-5), though some, such as cars, are exempt from CGT (s 118-5).
- Held in a super fund: Valuation Day does not cover super funds. Please ask your fund's adviser.
Where a value may matter, the result ends: "A value at 30 June 2027 may be useful. Ask your accountant." That value is prepared after the date: the ATO said on 19 October 2026 that a valuation shouldn't be obtained before 30 June 2027, because it can't be forward-looking (ATO).
What can't the checker tell you?
It can't tell you your tax position or whether a valuation suits you.
- Valuation or formula. The law lets the Minister make a formula, the apportioning method, that could be chosen instead of market value (ITAA 1997 s 112-155(3), s 112-185). None had been made at 24 October 2026 (Federal Register of Legislation search), so which assets it will cover is not yet known; the ATO says the Government is developing it. If one is made, the choice can wait until you lodge the return for the year you sell (s 112-155(4)). The ATO says that for most assets, including real estate, the market value just before 1 July 2027 will need to be established when you later sell, unless the formula can be used (ATO).
- Residency. Different rules can apply if you have been a foreign or temporary resident while holding the asset (s 112-155(1)(d)).
- Proposed changes. The Treasury Laws Amendment (Tax Reform No. 3) Bill 2026, introduced on 14 October 2026, would change how the rules apply in some cases involving trusts, deceased estates and foreign and temporary residents, and define a new residential dwelling. It is not law (Bills Digest No. 24).
- Tax advice. Oliver Group provides valuation services only. Obtain taxation advice from your accountant or tax adviser.
Questions people ask
Does the CGT change affect my home?
A home that has always been your main residence is generally exempt from CGT (ITAA 1997 s 118-110), and the ATO says that exemption is not changing. If it was rented out, used for business or not always your home, a 30 June 2027 value may be useful. Ask your accountant.
Does the 30 June 2027 CGT change affect my family trust?
Generally yes, with exceptions. A family trust holding an asset after 30 June 2027 is generally treated as selling it at market value just before 1 July 2027 and buying it back, if at least one beneficiary could use the 50% discount (ITAA 1997 s 112-165). Qualifying new residential dwellings and affordable housing are excluded.
Does the CGT change affect companies and their shareholders?
Companies never had the 50% CGT discount, and the main deemed sale covers individuals and trusts, not a company's own assets (ITAA 1997 s 115-10, s 112-155, s 112-165). A company's pre-CGT assets have a separate deemed sale (s 112-175). Shares in a private company held by you or your family trust can be covered.
Does the CGT change affect assets bought before 20 September 1985?
Yes. A pre-CGT asset, one acquired before 20 September 1985, that is still held after 30 June 2027 is generally treated as sold at market value just before 1 July 2027 and bought back (ITAA 1997 s 112-175). The ATO says gains accrued before then continue to be exempt, and later gains come into CGT.
What if I sell before 1 July 2027?
The 30 June 2027 deemed sale does not apply to an asset sold before 1 July 2027, and the ATO says nothing changes for assets bought and sold before then. For CGT, a sale generally happens when the contract is signed, not at settlement (ITAA 1997 s 104-10(3)). Ask your accountant about timing.
When could the CGT change first affect my tax return?
The ATO says the 2027-28 tax return is the first that could be affected, and only if a CGT event, such as a sale, happens that year. You can generally complete your 2026-27 return without the 30 June 2027 value. Any gain from the deemed sale is reported when you later sell.
Another question? Call 03 8375 4177.
