ATO Warns Property Owners Against Early Market Valuations

The Australian Taxation Office has advised property owners to avoid obtaining market valuations before July 1, 2027, as the government prepares to implement changes to capital gains tax. Under the new rules, certain properties will require a market value established as of June 30, 2027, to distinguish between gains accruing before and after that date.

The agency stated that prospective valuations prepared before the deadline will not be acceptable. Instead, the ATO recommends retrospective valuations conducted after the date, noting these are often preferable because they provide better access to comparable sales records.

Taxpayers may eventually have the option to use a formal valuation or an alternative apportionment method currently being developed by the government. While professional valuations are generally more credible, the ATO clarified that acceptability typically depends on the process used rather than the valuer's credentials, with some exceptions for the GST margin scheme. The agency plans to release further guidance, tools, and calculators once the legislation is finalized.