CGT business valuation as at 30 June 2027.

The short version

Busy? These six points cover most of it. The rest of the page explains each one.

• No tax bill on 30 June 2027. The new rules change how a later sale is taxed. They do not create a tax bill on the day.
• It depends on who owns the business. Australian resident individuals, partners and trusts with at least one eligible beneficiary are in the frame. A company's own assets generally are not, but shares held by you or your trust can be.
• A valuation is optional. The law uses the market value just before 1 July 2027 unless you choose an apportioning method, which was still a draft at the time of writing. Your accountant helps you choose, and the choice can usually wait until you sell.
• The date is 30 June 2027. A valuation for this purpose describes your business as it stood at the end of that day, so it is prepared after that day.
• Getting organised early helps. Not because of a due date (there is none), but because records and people move on.
• You can book now. Independent Business Valuation values businesses and business interests for owners and their accountants, Australia-wide. One fixed fee of $999 + GST for a full valuation report on one business or ownership interest with annual turnover under $10 million. Fixed fee, confirmed in writing before we start. No hourly billing and no surprises.

What changes on 1 July 2027

The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 is now law. It changes how capital gains are taxed for Australian resident individuals, and for many trusts and partners, and it draws a line at the end of 30 June 2027.

In plain English, for gains that build up from 1 July 2027, the 50% CGT discount is generally replaced by two things: your cost base is lifted in line with inflation (CPI indexation), and Australian resident individuals pay at least 30% tax on those gains, with some exceptions. Growth up to 30 June 2027 is not swept in: when you eventually sell, that earlier portion can generally still access the 50% discount.

To draw the line, the law treats each relevant asset as sold just before 1 July 2027 and bought back on 1 July 2027. This happens automatically and no tax is payable because of it: the gain waits until you actually sell. The amount used is market value just before 1 July 2027, unless an apportioning method is chosen (once one is finalised), so 30 June 2027 is the valuation date.

More on the timing: the 30 June 2027 valuation date.

The detail sits in the Act, including sections 112-155, 112-165, 112-175 and 112-185, and in the ATO guidance on the reform.

Where each element stands

Who the new rules touch, and who they do not

The transitional rule is aimed at the taxpayers who could use the 50% discount in the first place.

Companies can't use the 50% CGT discount, so the 30 June 2027 deemed sale for individuals and trusts does not apply to a company's own assets. The exception is any asset a company has held since before 20 September 1985 (a pre-CGT asset). The law treats that asset as sold and bought back at market value just before 1 July 2027, so growth after that date can be taxed. Your adviser can tell you whether that applies.

Some other situations work differently, including super funds and owners who are not Australian residents. Raise these with your accountant early.

Valuation or apportionment: the choice can wait, the evidence cannot

Market value just before 1 July 2027 is the default. Instead, a taxpayer may be able to choose an apportioning method that the Minister may set by legislative instrument (section 112-185). It is not final: a draft released for consultation in August 2026 had not been made as at 13 October 2026. The Government describes it as covering real property and assets without a readily ascertainable market value, and it could change.

The law does not require a formal valuation report to work out market value. If the apportioning method is finalised and you choose it, that choice is generally made with the tax return for the year the asset is later sold, so it is a tax decision for you and your adviser, not for a valuer.

The choice can wait. The evidence cannot.

If nobody chooses the method, market value is what the law uses, and someone has to establish it. Done years later, that depends on whatever records survived. A valuation prepared soon after 30 June 2027, from records made at the time, keeps the market value route on a firm footing without committing you to it.

Neither route suits everyone. Where the value is material, or the business changed sharply around 2027, a market value on file gives your adviser a real figure to compare. Which route suits you is a question for your tax adviser once the method is final. More: valuation or apportionment.

The small business CGT concessions continue

The four small business CGT concessions in Division 152 continue after 1 July 2027: the 15-year exemption, the 50% active asset reduction, the retirement exemption and the small business rollover. Where an owner meets the conditions, these can still reduce or defer a capital gain on a business sale alongside the new rules.

One change is worth knowing. From the income year that includes 1 July 2027 the turnover threshold for the 50% active asset reduction rises from 2 million dollars to 10 million dollars. The other concessions keep their existing thresholds: generally aggregated turnover under 2 million dollars, or net assets of no more than 6 million dollars under the maximum net asset value test. The active asset test and the other basic conditions still apply.

Valuations already sit close to these concessions: the maximum net asset value test is measured using the market value of assets. If you might be near the net asset threshold, you may need market values for that test too. Tell us when you ask for a quote so the scope covers it. Whether you qualify is a tax question, and our resource on the small business CGT concessions and valuations explains where a valuation fits.

Why prepare now

There is no statutory date by which a 30 June 2027 valuation has to be done. The reasons to start early are practical: evidence, planning and capacity.

The year that matters has already started

The financial year that ends on 30 June 2027 began on 1 July 2026. The contracts, customers, staff and accounting choices of this year are the facts the valuation will rest on.

• Evidence fades. Your financial statements will survive. The commercial picture behind them often does not: which customers mattered, which contracts were in force, which risks were known. A reconstruction years later is weaker than a record made at the time.
• Some evidence only exists on the day. Debtors, stock, the order book, work in progress and known issues change week to week. Their position at 30 June 2027 is easy to save at the time and hard to prove years later.
• Your accountant needs room to plan. Working out which entities and interests are touched, and which route suits each one, is easier before the year end than during it.
• Clean records make a cleaner valuation. Owner loans, related party rent, one-off costs and owner wages all need explaining, which is easier in the ordinary course of the year than under pressure later.
• Requests are likely to bunch. Every 30 June 2027 valuation shares the same date, so many will be requested once year-end accounts are done. Booking early reserves your place.
• The responsibility stays with you, for years. ATO guidance says the responsibility for a valuation that can be replicated and defended stays with the taxpayer, and that the ATO may review one, more likely where the value is high. The figure may not be used until a sale years, even decades, away.

A short to-do list

1. 01Ask one questionAsk your accountant: do the 30 June 2027 rules touch anything we, our trust or our partnership own?
2. 02Start a 2027 folderCustomer list, key contracts, leases, the budget and a staff list. At 30 June 2027, add debtors, creditors, stock, the order book and any known issues.
3. 03Get a quoteTell us about the business. We confirm the scope and fee in writing.
4. 04Book your placeWe schedule the work for after 30 June 2027, once your accounts are ready.

What a 30 June 2027 valuation from Independent Business Valuation includes

A valuation report from Independent Business Valuation is a reasoned, documented report for one business or ownership interest, written to be read years later by someone who was not there. ATO guidance says acceptability usually turns on the process: an objective, suitably experienced valuer, a recognised method and credible evidence. Our reports are built to show that process. For a 30 June 2027 engagement it covers:

• The subject, defined precisely: the whole business, all or some of the shares in a company, units in a unit trust, or a partnership interest.
• The date and standard of value: market value as at 30 June 2027, for the CGT purpose your adviser has identified.
• Normalised earnings: owner wages at a market rate, related party rent, one-off items and private expenses adjusted.
• The method and a cross-check: usually capitalised earnings for a trading business, tested against an asset-based or other method where that helps.
• Part interests: where only some of the shares or units are valued, the report considers what that interest would sell for, including any discount for lack of control.
• The evidence file: the records relied on, the commercial position at the date and the key assumptions, kept so you and your adviser can return to them years later.
• A representation letter: before the final report, you sign a letter confirming the information you supplied.

Every report is prepared by a suitably qualified business valuer at Valuation Group. Guided by APES 225 Valuation Services. Software helps us organise and check information. A qualified valuer makes every valuation judgement and signs every report.

Booking now, preparing after 30 June 2027

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.

A report as at 30 June 2027 cannot honestly be finished before that day ends, because the numbers it rests on do not exist yet. Everything around it can happen now.

You receive a records checklist matched to your business, so the right documents are kept as the year runs. You provide the records through the secure upload link on your matter, never by email.

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 is usually once your year-end accounts are available.

If you need a value now, for a sale or a restructure, that is a separate valuation at a current date. It can be a useful baseline, but it is not the 30 June 2027 value.

What it costs

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, including a valuation as at 30 June 2027. It is fixed for the agreed scope and never billed by the hour, and the fee does not move with the value we reach. Larger or more complex matters are quoted in writing.

Each additional valuation date is $495 + GST, and each additional entity or interest is $795 + GST. In the workshop example above, the trust's shares and the co-founder's shares are two interests.

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.

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.

Our CGT valuation cost page explains what moves a fee up or down.

For accountants

If you advise clients with businesses in trusts or partnerships, or with company shares held personally or by a family trust, the 30 June 2027 question will reach your desk. We work alongside you, not around you.

• You decide the tax treatment: whether the rule applies, which assets are touched and which route is used. We establish market value for the interest and date you specify.
• We stay independent. The fee is fixed before work starts and does not depend on the result.
• Your clients stay yours. You see a client's matter or documents only with that client's written consent.
• Send a summary of a client list and we scope and quote a group of 30 June 2027 engagements in writing.

Questions to settle before instructing a valuer

1. Which taxpayer holds each interest, and is each one an Australian resident?
2. For each trust, does the beneficiary test in s112-165(1)(d) appear to be met?
3. Are any pre-CGT assets held anywhere in the group?
4. Is the interest controlling or a minority, and does a shareholders' agreement affect it?
5. Could the client rely on the Division 152 concessions later?
6. Will the report be used for anything else, such as a sale or buy-out?

Owners: send this page to your accountant, so you are both reading the same thing. Accountants: see For accountants, or apply to the Accountant Partner Program.