CGT 2027 FAQ: 30 June 2027 valuation questions, answered

From 1 July 2027, the 50% CGT discount for individuals and trusts (including partners’ shares of partnership gains) is generally replaced, for gains that build up after that date, by cost base indexation for inflation, and Australian resident individuals pay at least 30% tax on those capital gains, with some exceptions. Gains built up before then generally stay under the old rules. Companies can’t use the 50% discount, so that part does not change for them, although any pre-1985 assets they hold are reset (see below).

The core change is law: the Treasury Laws Amendment (Tax Reform No. 1) Act 2026. Some detail was still being settled at the time of writing, including the legislative instrument for the apportioning method, which was released in draft for consultation in August 2026 and had not been made. We review this page as the position changes.

The transitional rule generally treats Australian resident individuals and trusts with at least one eligible beneficiary as having sold their relevant CGT assets at market value just before 1 July 2027, and bought them back straight away. Just before 1 July 2027 is the end of 30 June 2027, so that is the date a market valuation speaks to. A report dated 1 July 2027 answers a slightly different question.

Generally, no. The deemed sale and buy back is a way of drawing a line between the old rules and the new ones, not a sale you pay tax on at the time. The split is generally worked out when you later sell, transfer or otherwise dispose of the asset, and it shows up in the tax return for that year.

Generally, no. The part of the gain that built up to 30 June 2027 can still get the 50% discount when the asset is eventually sold, provided it would otherwise qualify. Indexation applies to the growth after that date, and resident individuals pay at least 30% tax on it, with some exceptions. That is why the 30 June 2027 value can matter: it is the line between the two parts of the gain.

No. The law does not require one, and plenty of owners will not need one. A company that holds its own business is generally outside the transitional rule for its own assets, unless they were acquired before 20 September 1985. Some owners may qualify for the small business concessions on a future sale; others may prefer a government apportioning method once it is finalised. A valuation is most worth discussing where a business or interest held by an individual or a trust has grown a lot in value. Your tax adviser decides.

The company’s own assets are generally not affected: companies can’t use the 50% discount (pre-1985 assets aside). But if you hold shares in the company personally, or through a family trust, those shares are assets the new rules can apply to. So the 30 June 2027 question is usually about the value of the shares, not the assets inside the company. Valuing shares in a private company is core Independent Business Valuation work: see private company share valuation.

Most trusts are covered by the transitional rule (it applies where at least one beneficiary could get the CGT discount), so the trustee is generally treated as selling and buying back the trust’s assets just before 1 July 2027. For a trading trust that usually means the business: its goodwill and other assets. If the trust holds shares or units in another entity, those may need their own value, as may the units each unitholder holds in a unit trust. See trust business valuation for how we approach each structure.

A sole trader owns the business assets personally, so the rule for individuals can apply to the goodwill and other assets of the business. In a partnership, CGT generally applies to each partner’s share of the partnership assets, so the question is usually asked partner by partner, which matters when partners hold different shares or have different plans. Your tax adviser confirms how the rules apply to your structure.

Possibly. Assets acquired before CGT began on 20 September 1985 are generally outside CGT today. Under the new law (section 112-175), an asset that is still pre-CGT on 30 June 2027 is treated as sold and bought back at its market value immediately before 1 July 2027. Growth to that date stays exempt, but growth after it can be taxed when you later sell. This applies to any owner, including a company. Raise this with your tax adviser.

It can. The value may become relevant whenever a later CGT event happens, and that is wider than a sale: transferring shares to a family member, selling part of the business to a new partner, restructuring or winding up an entity can all be CGT events, depending on how they are done. That might be twenty years away. Evidence of what the business looked like in 2027 is easier to keep now than to rebuild then.

Possibly. The Act lets the Minister set an apportioning method (section 112-185) that you may be able to choose instead of market value just before 1 July 2027. At the time of writing it was only a draft, released for consultation in August 2026 and described as covering real property and assets without a readily ascertainable market value. It cannot be relied on until it is finalised, and how it works may change.

Generally, the choice is made in the tax return for the year you later sell or otherwise dispose of the asset, not in 2027. So you do not have to decide now. But if a valuation might suit you better later, the evidence for it has to exist later, and a 30 June 2027 value is hard to support years afterwards if nobody kept the records.

Apportionment is arithmetic. A valuation is an opinion of market value at a date, supported by evidence: the earnings, customers, contracts, people, risks and market conditions at 30 June 2027. A formula assumes value built up in a set pattern, and real businesses rarely grow that way: one that doubled in value early and then levelled off looks very different from one only now taking off. Which approach suits you is for your tax adviser.

A valuation as at 30 June 2027 can only be completed after that date, but you can book and organise the records now. As we understand the rules, having a valuation on file does not lock you into using it, because the choice is generally made when you later sell. Your tax adviser should confirm this for your situation.

No valuer can promise that, and it is a red flag if one does. The ATO’s guidance on market valuation focuses on how a valuation was done: whether the valuer was suitably qualified and independent, whether the method suits the asset, and whether the evidence and reasoning are documented. Our reports are built so you and your adviser can follow each step. Every report is prepared and signed by a suitably qualified business valuer at Valuation Group.

Possibly. It depends on their valuation experience, their independence from you and the business, and what the value is for. Where the amount is material, an independent valuer means the person preparing your tax return is not also the person who set the number in it. We value the business; your accountant keeps the tax advice.

Treasury has said the four small business CGT concessions continue: the 15-year exemption, the 50% active asset reduction, the retirement exemption and the small business rollover. The usual conditions still apply. Whether you qualify is generally worked out at the time of the CGT event, and your tax adviser decides.

One threshold moves. From the income year that includes 1 July 2027 the 50% active asset reduction is available to businesses with aggregated turnover under 10 million dollars, up from 2 million dollars. The other concessions keep the existing 2 million dollar turnover test and the 6 million dollar maximum net asset value test. So a business in between may be able to use the active asset reduction where it could not before, if it meets the other conditions.

Possibly not, but it is too early to assume. Whether a sale qualifies is tested when it happens, which may be years away. Market value can matter inside the concessions too: the 6 million dollar maximum net asset value test generally looks at the market value of assets just before the CGT event. That is a different date and question from 30 June 2027. Your tax adviser can tell you which values matter for you.

There is no statutory deadline for obtaining a 30 June 2027 valuation. The pressure is practical, not legal. The further you get from 30 June 2027, the harder it is to show what the business looked like that day: staff leave, systems change and forecasts get overwritten.

No. 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. Before then we can confirm the scope and fee, set up your matter and help you work out which records to keep, so the valuation is straightforward once the year end accounts are in.

Yes. A valuation can be prepared as at a past date. The valuer works from what was known or reasonably knowable at 30 June 2027, not from what happened next, which is much easier when the records from the time survive. One built on thin records is harder to support.

Keep what genuinely existed at the time, and never create documents later to fill gaps. The useful set: financial statements and tax returns for recent years and for the year to 30 June 2027; management accounts; the customer list and how much the largest customers bring in; key contracts and leases; budgets and forecasts made at the time; staff and key person details; the asset register; and loans and related party arrangements.

Sometimes. A sale, buy-out or restructure usually needs a value at a different date, which is an additional valuation date at $495 + GST when we prepare both together. Family law matters are prepared through our dedicated family law practice, Family Law Valuations, because a property settlement valuation answers a different question at a different date. Court or tribunal work is a separate engagement with its own fee.

We charge one fixed fee of $999 + GST for a full valuation report on one business or ownership interest with annual turnover under $10 million. Turnover over $10 million, groups of entities or several interests: Quoted in writing. The fixed fee applies once we confirm the interest, purpose, structure and records fit the fixed-fee scope. Anything outside it is quoted in writing before we start. Fixed fee, confirmed in writing before we start. No hourly billing and no surprises.

Each additional entity or interest valued is $795 + GST, for example where a family trust holds the business and family members also hold shares in a related company. Each additional valuation date is $495 + GST. Anything outside the agreed scope is quoted in writing before we do it.

Standard engagements take 2 business days for turnover under $2 million and 3 business days for turnover $2 million to $10 million. Delivery time starts once payment and all required information have been received, and pauses while we wait for answers to our questions or your signed representation letter. For a 30 June 2027 valuation, that means after 30 June 2027, once the year end records are ready. Complex matters get a timetable agreed before we start. Tell us your deadline and we will tell you on the call whether we can meet it.

No. A calculation or limited-scope engagement gives an estimate with less work behind it. It is not a full valuation report. For a CGT value that may need explaining years later, your tax adviser may want the fuller report. We tell you which one you are getting before you engage us.

Use the client referral form, which asks you to confirm your client’s consent. We confirm the scope and fee in writing before we start, and the client signs a representation letter confirming the information supplied before the final report. Documents come only through the secure upload link on the matter, never by email. You see the client’s matter or documents only with the client’s written consent.

Yes. The bulk quotation request lets you summarise a group of clients: how many, their structures, the turnover mix and the dates needed. We reply with a written quote. Firms expecting regular work can apply to the Accountant Partner Program. No client documents are uploaded through the website.

Usually the financial statements and tax returns, the entity structure, share registers, trust deeds or unit registers, related party arrangements and any earlier valuations. The tax decisions stay with you: whether the rules apply, whether to use market value or apportionment, and how the value is used in the return. We provide an independent market value for the agreed interest at the agreed date. We do not give tax advice.