Accounting bodies support formal valuations over the draft capital gains tax (CGT) apportioning formula, which Treasury released on August 4. The consultation period ended on August 21, 2026, and professionals have started sharing their opinions publicly. Treasury’s parallel Tax Reform No. 3 Bill, addressing related technical adjustments, is also progressing through this consultation window.
The draft formula is not yet law, and it remains uncertain whether Treasury will implement changes based on the submissions. The July 1, 2027 deemed disposal and reacquisition date, along with the June 30, 2027 asset-scope date, stay the same.
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Industry bodies share their views
Since the draft’s release, two industry bodies have made their positions known. Tony Greco, IPA senior tax adviser, clarified that while a valuation does not need completion by June 30, 2027, it must accurately represent the asset’s market value as of that date. Greco pointed out that for assets with irregular growth, a formal valuation could be more advantageous, particularly if most growth occurred before July 1, 2027. He emphasized that uneven growth patterns can complicate the application of a standardized formula, making professional valuation a more reliable option.
Formal valuations for detailed assets
In the residential property sector, steady growth has been uncommon. While markets like Adelaide and Brisbane saw consistent growth from 2010 to 2020, other cities experienced fluctuations due to events such as the Global Financial Crisis and the pandemic. But over roughly the same window, other markets lived through the GFC crash, then the pandemic and the record 0.10% cash rate that came with it, plus rezoning windfalls in some suburbs sitting alongside flat patches in others, sometimes in the same city at the same time. These contrasting experiences show the importance of tailored valuations for assets in diverse market conditions.
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