Is a 30 June 2027 valuation needed for every business?

Who the rule touches

From 1 July 2027 the 50% CGT discount for individuals and trusts is generally replaced, for later growth, by cost base indexation and a 30% minimum tax on resident individuals' gains. To separate old growth from new, an Australian resident individual, or a trust with at least one eligible beneficiary, is generally treated as selling each CGT asset just before 1 July 2027 and buying it back on 1 July 2027.

For business owners, that usually means the value as at 30 June 2027 of:

• private company shares held personally or through a family trust
• units in a unit trust
• a share of a partnership business
• a business run as a sole trader, or by a trust directly

The deemed sale is automatic, but no tax falls due in 2027 because of it: the gain waits until you actually sell. Super funds and foreign residents are generally outside the rule.

The alternative to a valuation

Where the rule applies, the starting point is market value just before 1 July 2027. The law also lets the Minister set an apportioning method you may be able to choose instead, once it is finalised. That choice is made with your tax return for the year you later sell, not now.

In October 2026 the method was still a draft, released for consultation in August 2026. And the draft covers real property and assets without a readily ascertainable market value. It works from the price paid, so it may not suit an asset with no purchase price, such as goodwill you built yourself, and the final version could differ. See the apportionment method.

Companies are different

Companies cannot use the 50% CGT discount, so the rule does not reach assets a company owns itself, such as its goodwill, apart from the pre-1985 assets covered below. The company generally needs no 30 June 2027 value for this purpose.

The catch is the shares. If you or your family trust own them, the shares are caught, and valuing private company shares usually means valuing the business inside. Assets acquired before 20 September 1985 follow a separate rule that resets them at market value just before 1 July 2027, whoever owns them, companies included. Your adviser should check. More in does a company need a 30 June 2027 valuation.

When a valuation may still be worth having

Without an apportionment choice, market value is the default and the onus of supporting it is yours. A valuation may be worth raising with your accountant when:

• the interest is worth a material amount and most of its growth came before 2027
• you expect a sharp change after 2027, so a formula could split the gain very differently from what happened
• a sale, buy-in or succession is likely within a few years
• the evidence (customers, contracts, forecasts, key people) would be hard to rebuild later

It may add little when the asset sits inside a company, the amounts are small, or your adviser expects the 15-year exemption or another small business concession to cover the whole gain.

A valuation as at 30 June 2027 is prepared after that date, once your records to 30 June 2027 are available. You can book your place now.