This site is a public education hub for property owners, investors, tax return accountants and real estate agents trying to understand Australia’s 1 July 2027 capital gains tax reform.
It does not sell valuation services. It explains the reform, who may be affected, why dated property valuation evidence and records matter, and what questions to raise with a registered tax professional.
What changes under the 2027 CGT reform#
From 1 July 2027 the 50% CGT discount (individuals, trusts, partnerships) is replaced by CPI indexation of the cost base plus a minimum 30% tax on net capital gains. Assets held on 30 June 2027 are treated as sold and reacquired at their market value just before 1 July 2027 — that is, as at the end of 30 June 2027 — a deemed disposal and reacquisition often called the cost base reset. That market value becomes the new cost base for later gains, which is why dated valuation evidence matters. Sources: budget.gov.au, ATO, Parliament. General information, not tax advice.
Who this education site is for#
Property owners
Understand why the reform may matter even if your home is not currently an investment property.
Property investors
Learn why 1 July 2027 records may become important for future CGT calculations.
Tax return accountants
Prepare client education, record checklists and questions for property-owning clients.
Real estate agents
Help landlords and owner-clients understand when to speak with their accountant or adviser.
Start here#
- Read the plain-English explanation of the reform.
- Check whether the rules may affect your ownership structure.
- Understand why owner-occupiers may still need to pay attention.
- Prepare questions for your tax professional.
- Keep property records organised before 1 July 2027.
- If you decide you need a valuation, compare what each level costs and what it is for.
Affected-owner guide
Compare valuation services & prices
Why 1 July matters
Ask a public question
SMSF vs normal owners
Negative gearing changes
ATO guidance tracker
Valuation vs the free formula
The new CGT calculation
All common questions
Get reform updates
Reform glossary
Timeline & key dates
Pre-1985 property
Home becomes a rental
Common questions#
Who is affected by the 1 July 2027 CGT change?
Mainly owners of residential investment or income-producing property held as individuals, trusts or partnerships. Owner-occupiers can be affected later if the property is rented, transferred, inherited or changes use. General information, not tax advice.
What does the cost-base "reset" mean?
Property held on 30 June 2027 is treated as sold just before 1 July 2027 — at its market value at the end of 30 June 2027 — and reacquired on 1 July 2027 for that amount, which becomes the new cost base for gains after that date. Gains up to then keep the old rules.
Are SMSFs included?
Under the legislated reform (Act No. 49 of 2026), super funds including SMSFs sit outside the new 1 July 2027 CGT settings and keep their existing CGT settings, for property acquired on or after 20 September 1985. One exception reaches every owner: property that is still a pre-CGT asset on 30 June 2027 is deemed sold just before 1 July 2027 whoever holds it — that rule (s 112-175) is written by asset type, not by owner. SMSFs do have a separate annual market-value obligation (SIS Reg 8.02B) — confirm treatment with your adviser.
Do I need a property valuation before 1 July 2027?
If a property may face CGT, a dated, independent valuation as at the end of 30 June 2027 (the market value just before 1 July 2027) is the cleanest evidence of the new cost base — harder and costlier to reconstruct later. Ask your accountant.
When is the valuation delivered?
The reset value (market value at the end of 30 June 2027) can only be finalised once the date has passed, so valuation providers generally deliver signed reports from around July 2027. Some services allow earlier reservation — check timing with the provider you choose.
What happens to pre-1985 (pre-CGT) property?
Under the legislated reform the blanket exemption for assets acquired before 20 September 1985 ends for gains after 1 July 2027. Those properties receive a deemed cost base equal to that same reset value, which makes dated valuation evidence especially important for long-held property. Confirm treatment with your tax professional.
What evidence does the ATO expect for market value?
The ATO’s market-valuation guidance expects an objective, supportable valuation — comparable sales evidence, a clear methodology and a qualified, independent valuer. A signed report prepared to that ATO-acceptable standard is stronger evidence than an agent’s appraisal or an online estimate. There is no “ATO-approved” valuation — no such status exists.
Can I get a backdated valuation after 1 July 2027 — is waiting worry-free?
You can, and many advisers assume this makes waiting safe. A retrospective (backdated) valuation is legitimate — but it is not automatically worry-free: sales evidence goes cold, the property’s condition at the date must be reconstructed, and a weakly-evidenced number is easier to challenge years later. A contemporaneous valuation around the date itself is generally the cleanest evidence; retrospective is the fallback, not the plan.
How much does a property valuation cost for CGT?
For a CGT figure, price the inspected report first: on-site inspections in this market start from about $646-$835, and market guides put standard residential valuations at roughly $300-$600. Signed desktop pathways start lower, around $279-$362, but a desktop involves no inspection and is not the level to rely on where the ATO may test the number. Scope matters more than price - a free estimate is not a signed valuation. See the property valuation service comparison for published examples.
Does the 1 July 2027 CGT change affect my family home?
An owner-occupied main residence generally keeps its exemption. The change matters if the home is later rented, used to produce income, transferred or inherited - the property can then face CGT with 1 July 2027 as a key valuation date. Check your position with a registered tax professional and see who is affected.
How is capital gains tax calculated on property after 1 July 2027?
Under the legislated reform, most gains after 1 July 2027 no longer get the 50% discount (individuals, trusts, partnerships). Instead the cost base is indexed to CPI, and a minimum 30% tax rate (new Division 119) reaches Australian-resident individuals — a trust or partnership gain meets the floor once attributed to an individual. The discount is not abolished outright — it still applies to gains accruing up to 1 July 2027, and concessional treatment is retained for new residential dwellings and affordable housing. The reset value — market value just before 1 July 2027 — becomes the new cost base for property held on 30 June 2027 - see the reform glossary and timeline.
Is a professional valuation compulsory for the 1 July 2027 reset?
No — it is a choice. You can either obtain a market valuation as at the end of 30 June 2027 or use Treasury’s free apportioning method (a formula set by the Treasurer, with ATO tools to come, that estimates the 1 July 2027 value by assuming the property grew at one steady rate). A professional valuation matters when that steady-rate assumption would understate your property’s real 1 July 2027 value — strong recent growth, renovations, or an unusual property — or when you want independently defensible evidence. See our full explainer valuation vs the free formula and ask a registered tax professional which suits your case.
Is the change only about property, or other assets too?
The discount-to-indexation change applies to CGT assets held by individuals, trusts and partnerships generally — property is where most people feel it, and it is this site’s focus. The negative-gearing change is specifically about residential property. For shares and other assets, ask a registered tax professional.
Important#
This site provides general education only. It is not tax, financial, legal or valuation advice. Whether the reform affects you depends on your ownership structure, use of the property, future plans and personal tax position.
Speak with a registered tax professional before acting.