Who this is for
- Owners who first rented out a former home
- Beneficiaries who inherited a property
- Accountants preparing CGT calculations for clients
- Owners whose circumstances changed and need a value at a past date
What you get
- Market value at the date your accountant specifies, past or present
- Sales evidence from around the valuation date
- Notes on the property as it was at that date
- A written report signed by a Certified Practising Valuer
- Residential, commercial and industrial property covered
When capital gains tax calls for a valuation
Capital gains tax is worked out from what a property cost you and what you received for it. In some situations, the cost or value that matters is the property's market value at a particular date, not the price anyone actually paid. That is when a formal valuation is useful.
Common situations include:
- a former home that was later rented out or used to produce income
- a property inherited from a deceased estate
- a change in ownership between related parties
- a change in your residency or other circumstances
- keeping records now for a property you may sell in future
The CGT rules are detailed and depend on your circumstances. This page is general information only. Your accountant or tax adviser should confirm whether a valuation is needed and at what date before you order one.
Valuing at a past date
Many CGT valuations are retrospective. The valuer is asked what the property was worth at an earlier date, sometimes several years ago. To do this, Tom looks at:
- sales of comparable properties from around the valuation date
- the property's size, location and features at that time
- any changes since, such as renovations, extensions or subdivision
Photos, plans, building permits and old sale records can all help, so gather what you have before you call. The guide to retrospective valuations and capital gains tax goes into more detail.
Which valuation type suits
- Kerbside valuation, from $500 + GST. An external, contactless inspection. It is commonly used for capital gains tax reporting and suits many tenanted properties.
- Full inspection valuation, from $500 + GST. Useful when the interior, renovations or unusual features have a real bearing on the value.
- Commercial and industrial valuation, from $975 + GST, with a 7-day turnaround, for shops, offices, factories and warehouses.
Desktop valuations are designed for quick pre-sale or pre-purchase guidance, so they are not the usual choice for tax purposes. The guide to desktop, kerbside and full inspection valuations explains the differences, and current rates are on the pricing page.
What happens after you enquire
You speak directly with Tom Nagy. There is no office layer, so the person you talk to is the valuer who will sign the report. Tom will ask for:
- the property address and type
- the valuation date or dates your accountant needs
- anything that has changed about the property since that date
Once the scope and fee are agreed, the inspection is booked and you receive a written report stating the market value and the sales evidence relied on.
Why use an independent Certified Practising Valuer
For tax purposes, the value needs to stand up if it is ever questioned. A report from a Certified Practising Valuer is independent, prepared to professional standards, and based on market evidence.
Tom Nagy has more than 30 years in real estate and property valuation and holds current CPV registration with the Australian Property Institute. His reports are accepted by the Australian Taxation Office, the State Revenue Office and the courts.
Call 0407 835 388 to talk about the date and property you need valued, or request a quote.
Common questions
What is a retrospective valuation?
It is a valuation of a property as at a past date rather than today. The valuer considers the property as it was at that date and relies on sales evidence from around that time. Retrospective valuations are commonly used for capital gains tax, deceased estates and family law matters where the value at an earlier date is what matters.
How far back can a property be valued?
Properties can be valued as at dates well in the past, provided there is enough sales evidence from around that time. Records of the property's condition and any changes since, such as renovations, extensions or subdivision, are helpful. Tell Tom the date when you first call, and he can discuss what information would help.
Do I need a valuation for capital gains tax, or can I estimate it?
The ATO expects values used in tax calculations to be reasonable and supportable. A valuation from a qualified, independent valuer is a common way to support a market value figure. Whether you need one depends on your situation, so confirm with your accountant or tax adviser before ordering.
I rented out my old home. Do I need a valuation from when it was first rented?
In some circumstances, a market value at the time a former home was first used to produce income can be relevant to capital gains tax. Whether that applies to you depends on your history with the property and the rules at the time. Your accountant can confirm this, and the date they need, before you book.
Is a kerbside valuation acceptable for capital gains tax?
Kerbside valuations, which involve an external inspection only, are commonly used for capital gains tax reporting. For retrospective valuations, an inspection today shows the property as it is now, so information about its condition at the earlier date is important. If a full inspection would help, Tom will say so when you discuss the job.
Helpful guides
Desktop, kerbside or full inspection: which valuation do you need?
The three main types of residential valuation compared: what each involves, what it costs and when each one makes sense.
Retrospective valuations for capital gains tax, explained
Sometimes capital gains tax depends on what a property was worth years ago. A retrospective valuation estimates that past value from the evidence of the time.