Reviewed 24 October 2026. General information only, not tax advice. This page reflects the law at 24 October 2026. A Bill introduced on 14 October 2026 would change some deemed-sale conditions, but it is not law (APH).
The straight answer: not necessarily
Not necessarily: no valuation has to be in place on the day (ATO, 19 October 2026), but a valuation may be useful for some assets.
- For most assets, including real estate, the ATO says the market value just before 1 July 2027 will need to be established when you later sell, unless the apportioning method can be used (ATO).
- That method had not been made at 24 October 2026, and the draft would not cover every asset (ITAA 1997 s 112-185).
Your accountant can say whether a valuation is worth it for you.
Why does 30 June 2027 matter?
Because the 30 June 2027 figure splits your eventual gain. If you or your family trust still hold an asset on 1 July 2027, the law generally treats it as sold just before that date and bought back straight away, a deemed sale (ITAA 1997 ss 112-155, 112-165). Assets bought before 20 September 1985 get their own deemed sale (ITAA 1997 s 112-175).
When you later sell, the part of the gain up to 30 June 2027 is generally still eligible for the 50% capital gains tax (CGT) discount; the part that builds up from 1 July 2027 can generally use cost base indexation, an inflation adjustment, instead (ATO). The line is the asset's market value, the price a willing buyer and seller would agree on at arm's length (ATO), unless you choose a formula, if one is made and covers the asset (ITAA 1997 s 112-155(3)).
What did the ATO say on 19 October 2026?
That a valuation doesn't have to be in place on 30 June 2027, and shouldn't be obtained before that date, because a valuation can't be forward-looking (ATO, 19 October 2026).
More ATO guidance, including which professionals to consider and what records to keep, is due before 1 July 2027 (ATO, 13 October 2026).
What about the formula?
The law lets the Minister make a formula, the apportioning method, that may be chosen instead of market value for the assets it covers, but none had been made at 24 October 2026 (ITAA 1997 s 112-185; Federal Register of Legislation search that day).
Treasury's August 2026 draft would cover only real property and assets whose market value can't easily be worked out, not listed shares (Treasury exposure draft, s 5(2)). It estimates the 30 June 2027 figure from what you paid, what you later sell for and the days you held the asset, assuming steady, compounding growth or decline (Treasury draft explanatory material). The final method may differ. If one is made, you choose by the day you lodge the tax return for the year you sell, or later if the ATO allows (ITAA 1997 ss 112-155(4), 103-25); see valuation or the apportioning method.
When may a valuation be useful?
Where the 30 June 2027 figure is likely to matter and can't be looked up, as it can for listed shares; ask your accountant.
- Growth: the figure sets how much of a gain falls before the date, where the 50% discount can generally still apply (ATO).
- A later sale or transfer: passing ownership to someone else, by sale or gift, is a CGT event (ITAA 1997 s 104-10), and the figure is used then.
- Uneven growth: the draft formula assumes steady growth, so if the value jumped or fell at one point, its figure may differ from the market value on the day.
- Trusts and companies: a family trust's assets are generally covered, with some exceptions, and the trustee makes the choice (ITAA 1997 s 112-165). Private company shares held by you or your trust are generally covered, though the company's own assets are not, apart from any bought before 20 September 1985 (ITAA 1997 s 112-175). See family trusts and shareholders.
When is a 30 June 2027 valuation prepared?
After the date: on or after 1 July 2027, looking back to 30 June 2027 (ATO, 19 October 2026). It should rest on information known, or that could reasonably be foreseen, at that date, not hindsight (ATO, Market valuation for tax purposes).
A valuation dated today is a current value to plan around, not a 30 June 2027 value.
What can I do now?
Keep good records and talk to your accountant.
- Keep purchase records:
when you acquired the asset, what you paid, its value then and any changes to its character or ownership. The ATO says these rules continue (ATO).
- Plan to keep records from around 30 June 2027,
such as a business's accounts to that date or photos of a property's condition. They may help a later valuation show what was known then.
- Ask your accountant
whether a market value or the formula, once made, may suit you. Oliver Group provides valuation services only.
- Try the checker:
Questions people ask
Do I need a valuation in place on 30 June 2027?
No valuation has to be in place on 30 June 2027, the ATO said on 19 October 2026. It added that one shouldn't be obtained before that date, because a valuation can't be forward-looking. A 30 June 2027 valuation is prepared on or after 1 July 2027.
Is a valuation the only way to work out the 30 June 2027 value?
Not necessarily. The law allows an apportioning formula, not made at 24 October 2026, and Treasury's draft covers only some assets. For most assets, including real estate, the ATO says the market value just before 1 July 2027 will need to be established on a later sale, unless the formula can be used.
Do I need the 30 June 2027 market value for my 2026-27 tax return?
Generally not. The ATO says you generally don't need to know an asset's 30 June 2027 market value for your 2026-27 return. For most individuals and trustees, the earliest return that could include the gain is for 2027-28, if the asset is sold or another CGT event happens that year.
Do I need a valuation of my home for 30 June 2027?
Generally not. A home that was your main residence for the whole time you owned it is generally exempt from capital gains tax (ITAA 1997 s 118-110), and the ATO says that exemption isn't changing. If it was rented out or used for business, ask your accountant.
Does my company need a 30 June 2027 valuation of its assets?
Generally not. The main 30 June 2027 deemed-sale rules cover individuals and trusts, not a company's own assets, except assets it bought before 20 September 1985 (ITAA 1997 s 112-175). Companies generally can't use the 50% CGT discount (s 115-10). Private company shares held by an individual or family trust are generally covered.
Another question? Call 03 8375 4177.
