Reviewed 24 October 2026.
The change on 1 July 2027
What is Valuation Day?
Valuation Day is an education platform by Valuo about 30 June 2027: the last day before the 50% CGT discount for individuals and trusts stops applying to the part of a gain that builds up from 1 July 2027. Valuations are by Oliver Group, part of Valuo. The name is not an official one.
What changes with capital gains tax on 1 July 2027?
For individuals and trusts, the 50% CGT discount no longer applies to the part of a gain that builds up from 1 July 2027. That part uses cost base indexation instead, and individuals may also pay a minimum 30% tax on it. The part up to 30 June 2027 can still get the discount.
Is the 1 July 2027 CGT change law yet?
Yes. The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 received Royal Assent on 26 June 2026, and the changes apply from 1 July 2027. A further Bill introduced on 14 October 2026 would adjust some details but is not law, and the apportioning method had not been made at 24 October 2026.
Does the 50% CGT discount disappear completely?
No. The part of a gain that built up to 30 June 2027 can still get the 50% discount when the asset is later sold, under the usual rules. New residential dwellings that meet the law’s tests, and affordable housing, keep a discount of at least 50% after 1 July 2027.
Who does the 1 July 2027 CGT change affect?
Mainly Australian resident individuals and trusts, including family trusts, that hold assets such as investment property, a business, or shares or units. Companies never had the 50% discount, and their own assets sit outside the main deemed sale, apart from pre-1985 assets. Your accountant can confirm whether it reaches you.
What happens to an asset I sell before 1 July 2027?
The current rules apply, including the 50% discount where it is available, and the deemed sale does not. For a sale under a contract, the CGT event generally happens when the contract is made, not at settlement. Assets bought on or after 1 July 2027 fall wholly under the new rules.
The deemed sale on 30 June 2027
What does “treated as sold and bought back” mean for 30 June 2027?
If you or your trust hold an asset on 30 June 2027, the law generally treats it as sold just before 1 July 2027 and bought back for its market value, unless the apportioning method is chosen. Nothing is actually sold. That figure divides a later gain at 30 June 2027.
Do I pay tax on 30 June 2027 because of the deemed sale?
No. Any gain or loss from the deemed sale is deferred until the income year in which you later sell the asset or another CGT event happens. The ATO says nothing about it goes in your 2026-27 or 2027-28 return unless that happens during one of those years.
Is the value at 30 June 2027 or at 1 July 2027?
The deemed sale uses the market value just before 1 July 2027, which means the end of 30 June 2027. The sale is taken to happen on 30 June 2027 and the buy-back on 1 July 2027, so a valuation for it is a valuation as at 30 June 2027.
I bought my asset less than 12 months before 1 July 2027. Can the earlier part of the gain still get the discount?
Yes, if you have held the asset for at least 12 months when you sell it. The law tests the 12-month rule for the part of the gain up to 30 June 2027 as if the deemed sale happened on the day of the later sale, and the ATO’s guidance says the same.
What happens to assets bought before 20 September 1985?
A pre-CGT asset still held has its own deemed sale: it is treated as sold just before 1 July 2027 and bought back, generally at market value. The gain up to then stays exempt, and that value becomes the new cost base, so gains from 1 July 2027 are taxed. Companies are covered too.
Does the deemed sale apply to my listed shares?
Generally yes, if you or your trust hold them on 30 June 2027, because shares are CGT assets. Treasury’s August 2026 draft apportioning method would not cover them, because their price at the close of trading can be readily found. That draft is not law. Ask your accountant how it applies to your portfolio.
A valuation or the apportioning method
Do I need a valuation for 30 June 2027?
Not necessarily. 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. But the law also allows an apportioning method, not yet made at 24 October 2026. Ask your accountant whether a valuation may be useful.
Can I get my 30 June 2027 valuation now?
No. The ATO said on 19 October 2026 that a 30 June 2027 valuation should not be obtained before that date, because a valuation can’t be forward-looking. It is prepared after the date, using information known or reasonably foreseeable on 30 June 2027. A planning valuation at today’s date can be prepared now.
What is the apportioning method?
It is an alternative to market value that the Minister may make by legislative instrument (s 112-185); none had been made at 24 October 2026. Treasury’s August 2026 draft would estimate the 30 June 2027 value from the purchase cost and later sale price, assuming steady compounding growth over the whole holding period.
Has the apportioning method been finalised?
No. At 24 October 2026 no instrument setting it out was on the Federal Register of Legislation. Treasury consulted on a draft from 4 to 21 August 2026 that would cover only real property and assets without a readily ascertainable market value. The ATO says it will give guidance once the method is enacted.
When do I choose between a market value and the apportioning method?
Not on 30 June 2027. The choice is made by the day you lodge your tax return for the income year in which you later sell the asset or another CGT event happens, or later if the ATO allows. The way you prepare that return is enough evidence of the choice.
Do I need the 30 June 2027 value for my 2026-27 tax return?
The ATO says that, generally, you don’t need to know the market value just before 1 July 2027 to complete your 2026-27 tax return. For most individuals and trustees, the earliest return that could include the deferred gain is the 2027-28 return, lodged from 1 July 2028, and only if you sell that year.
How long after 30 June 2027 can a value as at that date be prepared?
The law does not set a date for it: the value is used when the asset is later sold, which could be years away. Whenever it is prepared, it reflects the market on 30 June 2027 using information known or reasonably foreseeable then, so records from around that date may be useful.
Will the ATO agree with my valuation?
Nobody can promise how the ATO will treat a valuation. Its guide says acceptability usually depends on the process followed rather than who did it, that reports by suitably qualified professionals following accepted standards are considered more reliable, and that the taxpayer stays responsible for a replicable and defensible valuation.
What records should I keep for 30 June 2027?
The ATO says the usual records apply for assets held before 1 July 2027: when you acquired the asset, its value then, what you paid, and any changes in its character or ownership. Because a 30 June 2027 value rests on what was known at that date, records from around then may be useful.
Property
Does the 30 June 2027 change affect my investment property?
Generally yes, if you or your trust hold it on 30 June 2027. It is treated as sold just before 1 July 2027 and bought back; the part of the gain up to then can keep the 50% discount when you sell. Holiday homes other than your main residence are treated the same way.
Is my home affected by the 1 July 2027 CGT change?
Generally not, if it has been your main residence for the whole time you have owned it: such a home is generally exempt from CGT, and the ATO says the main residence exemption is not changing. If it has also been rented out or used to earn income, ask your accountant.
I rent out my former home. Does 30 June 2027 matter?
It may. A home that was your main residence for only part of the time you owned it, or was used to earn income, can be partly taxable, and the 30 June 2027 rules can then come into play. Ask your accountant whether a value at that date may be useful for you.
Does the change apply to a new build?
New residential dwellings that meet the law’s tests keep a 50% discount after 1 July 2027, with a choice of indexation, and sit outside the main deemed sale. The tests are not settled: no instrument setting them was on the Federal Register at 24 October 2026, and a Bill would define them. Ask your accountant.
Who can value property for CGT in Australia?
The ATO’s guide says acceptability usually depends on the valuation process rather than who did it. State rules differ: Queensland requires valuers to be registered, Western Australia requires land valuers to be licensed, South Australia and Tasmania set qualification rules, and New South Wales ended its registration scheme on 1 March 2016.
Who values property through Valuation Day?
Property valuations through Valuation Day cover investment, holiday and commercial property in New South Wales, Victoria, the ACT and the Northern Territory, and each property is valued and signed by a property valuer, never Oliver Group. Oliver Group values businesses, shares and trust units. The property fee is quoted in writing before any work begins.
Can my property be valued as at today and as at 30 June 2027?
Yes. A value as at today can be prepared now, and the value as at 30 June 2027 is prepared after that date, because the ATO says a 30 June 2027 valuation should not be obtained before it. The property fee is quoted in writing before any work begins.
Business owners and shareholders
Does the 1 July 2027 change affect my small business?
It depends on who holds the business. If you own it yourself or through a family trust, the deemed sale generally applies to its assets. If a company owns it, the company’s own assets sit outside the main deemed sale, but shares in the company held by you or your trust are generally covered.
My business is run through a company. Does 30 June 2027 matter?
It can. Companies never had the 50% discount, and a company’s own assets sit outside the main deemed sale, apart from pre-1985 assets. But shares in the company held by you or your family trust are generally treated as sold just before 1 July 2027 and bought back. Ask your accountant.
Do the small business CGT concessions still apply after 1 July 2027?
Yes. The four concessions remain, and from the income year that includes 1 July 2027 the 50% active asset reduction uses a $10 million aggregated turnover test instead of $2 million. The other three keep the $2 million test, with the $6 million net asset test still an alternative. Your accountant applies them.
What is a planning valuation?
A valuation at a current date, to plan around before 30 June 2027. It is not a 30 June 2027 valuation, which can only be prepared after that date. In the CGT 2027 Valuation Package, the update to 30 June 2027 is prepared after the date and included in the fee.
Family trusts and unit trusts
Does the 1 July 2027 change apply to my family trust?
Generally yes. If the trust still holds a CGT asset on 30 June 2027, the trustee is generally treated as selling it just before 1 July 2027 and buying it back. Conditions apply, including one about the trust’s beneficiaries and the CGT discount. Any gain is worked out when the asset is later sold.
Our family trust’s trustee is a company. Do the company rules apply?
Generally not. The tax law treats a company acting as trustee as a different entity from the same company acting for itself, and a provision about companies does not cover a company acting as trustee. So assets held for the trust generally fall under the trust rules. Your accountant can confirm this.
Is the proposed 30% minimum tax on trusts part of the 30 June 2027 change?
No. It is a separate proposal, in Bills introduced on 14 October 2026, for a 30% minimum tax on the net income of certain discretionary trusts from 1 July 2028. It is not law. The 30 June 2027 change was made by the Tax Reform No. 1 Act, which is law.
For accountants
What has the ATO told tax professionals about 30 June 2027 valuations?
On 19 October 2026 it said clients do not have to have a valuation in place on 30 June 2027 and should not obtain one before then, because a valuation can’t be forward-looking. It also said it will issue guidance on valuing certain assets, the professionals to consider, and the records to keep.
When will the deemed sale first show up in a client’s tax return?
Only in the return for the income year in which the asset is sold or another CGT event happens. The ATO says the earliest, for most individuals and trustees, is the 2027-28 return, lodged from 1 July 2028. The choice between market value and the apportioning method is made in that return.
Cost and how Valuation Day helps
How much does a 30 June 2027 business valuation cost?
For established businesses under $2 million turnover, the CGT 2027 Valuation Package is $1,995 + GST: a signed planning valuation now, with the update to 30 June 2027 included and prepared after that date. One date only: $1,495 + GST. At $2 million or more, the fee is confirmed in writing on the first call.
How much does a property valuation cost, and can I add one to a business valuation?
The property fee is quoted in writing before any work begins. You can combine them: Valuation Day offers $300 off the Oliver Group business fee when a property is added. A property value as at 30 June 2027 is prepared after that date, because the ATO says it should not be obtained before then.
Does Valuation Day give tax advice?
No. Valuation Day is general information, and Oliver Group provides valuation services only. Whether a valuation may be useful for you, which option suits you, and how the rules apply to your situation are questions for your accountant or tax adviser.
Another question? Call 03 8375 4177.
