Short answer
A business valuation report sets out its purpose and scope, the exact business or interest valued, the valuation date, the information and assumptions relied on, the method chosen and why, a cross-check, the concluded value, its limitations, and the valuer's qualifications and independence. The ATO's market valuation guide lists similar minimum contents for tax.
The parts of a full valuation report
A full report is written so that someone outside the work, such as your accountant or an ATO reviewer, can follow and test how the value was reached.
| Part | What it covers | Why it matters |
|---|---|---|
| Purpose and scope | Why the valuation was prepared, the instructions given and any limits on the work. | It sets the limits of everything that follows. |
| The asset or interest | Exactly what is valued, such as the whole business, one shareholding or trust units, and who holds it. | Your accountant needs the value of the asset you actually own. |
| Date and standard of value | The valuation date and the definition of value used, usually market value. | A value at one date does not answer for another. |
| Information relied on | The documents and data used, their source, how far they were checked, the assumptions, and anything not provided. | It is the evidence behind the figure. |
| Method and reasons | The approach chosen, why it suits this business, and a cross-check where one is possible. | It shows the figure was reasoned, not picked. |
| Workings | Adjusted earnings, the rate applied, surplus assets and debt, and the step to the interest held. | Another valuer can follow and test the result. |
| Conclusion | One value, and if the method gives a range, why that figure was chosen. | This is the figure your adviser works with. |
| Risks and limitations | What the value depends on, what was not verified, and who may rely on the report. | It tells you how far the report can be used. |
| Valuer and independence | The valuer's qualifications, the standards that guided the work, a declaration of independence and conflicts, and the date issued. | A reader can judge how objective the work was. |
For tax, the ATO's market valuation guide lists much the same items as the minimum it expects. See market value for tax purposes and business valuation methods.
How to check a report when it arrives
You do not need to follow every calculation. These five checks catch most problems before the report is final.
- Is it the right asset?Check the entity, the interest and the holding. If you own half the shares, the report should value that holding, not just "the business".
- Is it the right date?For the 1 July 2027 CGT changes, the rule uses market value just before 1 July 2027, so the date is 30 June 2027.
- Are the facts right?Read the information relied on and the assumptions, and flag anything wrong or missing. At Independent Business Valuation, you sign a representation letter confirming the information supplied before the final report is issued.
- Are the reasons there?Look for why the method suits the business, the main adjustments to earnings, and a cross-check. A number with no workings is hard to defend.
- Is it independent?The report should declare the valuer's independence and any conflicts, and the fee should not depend on the value reached.
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.
What a valuation report does not do
- It does not give tax advice. Your tax adviser decides how the figure is used, and whether a valuation or an apportioning method (once one is made) suits you.
- It does not promise acceptance. The ATO may review any valuation, and the taxpayer stays responsible for the value used.
- It is not a court expert report. Court or tribunal work is a separate engagement with its own fee, and family law matters go to our dedicated family law practice, Family Law Valuations.
- It may not suit another purpose. A report prepared for tax at one date may not suit a sale or a later date.
- A calculation or limited-scope engagement is not a full valuation report. We say which one you are getting before you engage us. See valuation or calculation.
Guided by APES 225 Valuation Services. A qualified valuer makes every valuation judgement and signs every report.
Read the full guide
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- What is a business valuation?A business valuation is a reasoned, independent opinion of what a business, or an interest in it, is worth at a stated date for a stated purpose...
- Our valuation process, from first question to signed reportEvery valuation at Independent Business Valuation follows the same eight steps, from a single cafe to a family group with three trusts. You know the...
- How a valuation worksThe steps, what we analyse and what the report contains.
- What a valuation costsOne fixed fee for turnover under $10 million, confirmed in writing before we start.
Related questions
How long is a business valuation report?
It depends on the business and the purpose. The ATO notes that where a value is straightforward, the report and records may be brief. A business with several entities, interests or adjustments needs more explanation. Length matters less than whether a reader can follow and test the reasoning.
Can I give the report to my bank or a buyer?
The report states who it is prepared for, the purpose, and who else may rely on it. Share it with your accountant for that purpose. If a bank, buyer or other party wants to rely on it, ask us first, because a report prepared for one purpose may not suit another.
Does the report value the premises the business owns?
Independent Business Valuation values businesses and business interests, not real property. If a business owns land or buildings, the report says how they were treated, and if it relies on another expert's figure, it names that expert and the basis used.
More short answers
- 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...
- 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...
- 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...
- 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...
Sources
- ATO, Market valuation for tax purposes (section "Valuation reports")ato.gov.au
- Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (No. 49, 2026), Federal Register of Legislationlegislation.gov.au
- ATO, Tax reform: boosting home ownership, reforming negative gearing and capital gains taxato.gov.au
- Treasurer's media release, 4 August 2026: Consultation on next tranche of tax reform legislationministers.treasury.gov.au
Updated
General information only, not advice about your circumstances. A valuation depends on the facts of the business and the purpose it is for.