30 June 2027 and Business Valuation Questions, Answered
Short, direct answers to the questions business owners, shareholders and accountants ask about valuations and the 30 June 2027 CGT date. Each one links to the detail behind it.
CGT and 30 June 2027
- Is a 30 June 2027 valuation needed for every business?No. The 30 June 2027 rule applies to assets held by Australian resident individuals and trusts with at least one eligible beneficiary, not, generally, a company's own assets. Even then, the law does not require a valuation: an apportioning method, once finalised, may be used instead. A valuation may still help where the amounts are material.
- Does a company need a 30 June 2027 valuation?Generally, no. Companies can’t use the 50% CGT discount, so the 30 June 2027 rule does not reach a company’s own assets, except any acquired before 20 September 1985, which are...
- Can I get a valuation as at 30 June 2027 after that date?Yes. Valuing a business as at a past date, called a retrospective valuation, is normal valuation work. A valuation as at 30 June 2027 can only be prepared after that date, once...
- What is the apportionment method for 30 June 2027?It is a formula the Government has proposed, under a power in the tax law, to split a capital gain at 1 July 2027 instead of using a market valuation. The draft assumes one steady...
- Do the small business CGT concessions still apply after 1 July 2027?Yes. All four small business CGT concessions continue after 1 July 2027. From the income year that includes that date, the 50% active asset reduction opens to businesses with...
- Can a business owned by a trust be valued for CGT?Yes. Most trusts are inside the 30 June 2027 CGT rule: it applies where at least one beneficiary, such as an Australian resident individual, could get the CGT discount. Where it...
Business owners
- Is a 30 June 2027 valuation needed for every business?No. The 30 June 2027 rule applies to assets held by Australian resident individuals and trusts with at least one eligible beneficiary, not, generally, a company's own assets. Even then, the law does not require a valuation: an apportioning method, once finalised, may be used instead. A valuation may still help where the amounts are material.
- Can a business owned by a trust be valued for CGT?Yes. Most trusts are inside the 30 June 2027 CGT rule: it applies where at least one beneficiary, such as an Australian resident individual, could get the CGT discount. Where it...
- Why do business valuation quotes vary so much?Mostly because quotes cover different work. A full valuation report reaches a conclusion of value; a calculation follows methods agreed in advance and generally leaves out some of...
- What information is needed for a business valuation?Usually three years of financial statements and tax returns, current management accounts, the ownership documents such as the constitution, share register, trust deed or...
- Can you value shares in a private company?Yes. Independent Business Valuation values shares in Australian private companies: all of the shares, a single shareholder’s parcel, or one class of shares. The value of a parcel...
Accountants and advisers
- Do the small business CGT concessions still apply after 1 July 2027?Yes. All four small business CGT concessions continue after 1 July 2027. From the income year that includes that date, the 50% active asset reduction opens to businesses with aggregated turnover under 10 million dollars. The other three keep the existing tests: turnover under 2 million dollars or net assets of 6 million dollars or less. Other conditions still apply.
- What is the difference between a valuation and a calculation engagement?In a full valuation, the valuer decides what work is needed and reaches a conclusion of value. In a calculation engagement, the valuer and client agree a narrower set of...
- Can you value shares in a private company?Yes. Independent Business Valuation values shares in Australian private companies: all of the shares, a single shareholder’s parcel, or one class of shares. The value of a parcel...
- How do accountants refer clients for a business valuation?Get the client's agreement, then choose a route: the single client referral form for one matter, a bulk quotation request for a list, or the Accountant Partner Program for a...
General
- Why do business valuation quotes vary so much?Mostly because quotes cover different work. A full valuation report reaches a conclusion of value; a calculation follows methods agreed in advance and generally leaves out some of that work. The interest valued, the number of entities and dates, the records and the purpose matter too. Independent Business Valuation charges a fixed $999 + GST for a full report.
- What is the difference between a valuation and a calculation engagement?In a full valuation, the valuer decides what work is needed and reaches a conclusion of value. In a calculation engagement, the valuer and client agree a narrower set of...
- Who can value a business for tax purposes?There is no formal admissions board for business valuers in Australia. The ATO’s guidance says a valuation’s acceptability usually depends on the process, not who did it. In...
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