Who this is for
- Family members transferring property between themselves
- Owners moving property into or out of a trust or company
- SMSF trustees acquiring property from a related party
- Conveyancers and solicitors preparing a transfer
What you get
- Current market value at the date of transfer
- Comparable sales evidence supporting the value
- Description of the land, improvements and location
- A written report signed by a Certified Practising Valuer
- Residential, commercial and industrial property covered
When stamp duty depends on market value
Most people think of stamp duty as a tax on the price paid. For many transfers that is true. But when property changes hands between people or entities that are connected, the price may not reflect the real value. In Victoria, duty is generally assessed on the greater of the price paid and the property's market value.
That makes a formal valuation important for transfers such as:
- a parent transferring a property, or a share of one, to a child
- one partner or co-owner buying out the other
- moving a property into or out of a family trust or company
- a self-managed super fund acquiring property from a related party
- any sale between related parties at a price below market
Duty exemptions and concessions exist for some transfers, and the rules can change. This page is general information only. Your conveyancer, solicitor, accountant or the State Revenue Office should confirm how duty applies before you proceed.
Which valuation type suits
For most residential related-party transfers, you have two options:
- Kerbside valuation, from $500 + GST, based on an external inspection. Contactless, and suitable where the property is tenanted or access is inconvenient.
- Full inspection valuation, from $500 + GST, where the interior condition or recent works have a real effect on the value.
For shops, offices, factories and warehouses, a commercial and industrial valuation is needed, from $975 + GST with a 7-day turnaround. Desktop valuations are not offered for commercial or industrial property.
The guide to desktop, kerbside and full inspection valuations compares the options, and current rates are on the pricing page.
SMSF and related-party transfers
Transfers to a self-managed super fund can raise both duty and superannuation questions. Super funds generally need to deal with related parties at market value, and the fund will also need to report the property at market value in its financial statements. An independent valuation can support both. See SMSF property valuations for more, and check the details with your accountant or SMSF adviser.
What happens after you enquire
When you call or email, you deal directly with Tom Nagy, the valuer who prepares the report. He will want to know:
- the property address and type
- who is transferring to whom
- the expected transfer date, or the past date if it has already happened
- whether the valuation is also needed for another purpose, such as SMSF or tax records
The inspection is then arranged and you receive a written report stating the market value and the sales evidence behind it.
Why an independent valuation matters
For duty purposes, the value needs to be credible to the State Revenue Office. A valuation from an independent Certified Practising Valuer is based on market evidence and prepared to professional standards, not on what the parties would like the figure to be.
Tom Nagy holds current CPV registration with the Australian Property Institute and has more than 30 years in real estate and property valuation. His reports are accepted by the State Revenue Office, the Australian Taxation Office and the courts.
Call 0407 835 388 to talk about your transfer, or request a quote.
Common questions
Why do I need a valuation when no money is changing hands?
In Victoria, duty on a transfer is generally worked out on the greater of the price paid and the property's market value. When property passes between related parties for little or no money, the market value often becomes the key figure. Your conveyancer, solicitor or the State Revenue Office can confirm how duty applies to your transfer.
Will the State Revenue Office accept the valuation?
Tom's reports are accepted by the State Revenue Office. As with any valuation, the SRO can review the figure and may ask questions or obtain its own valuation. A well-supported report from an independent Certified Practising Valuer, based on comparable sales, gives you a sound basis if that happens.
Can a real estate agent's appraisal be used instead?
An agent's appraisal is an estimate of a likely selling price, often prepared to win a listing. It is not an independent valuation and may not be accepted as evidence of market value for duty purposes. Check with your conveyancer or the SRO about what evidence they need for your transfer.
Could a transfer into my SMSF need a valuation too?
Often, yes. Super funds generally need to deal with related parties at market value, and the SRO may also look at market value for duty. The rules around related-party acquisitions by SMSFs are strict, so speak with your accountant or SMSF adviser before the transfer. A single independent valuation may serve both purposes.
What date should the property be valued at?
For a transfer, the value is usually needed at or close to the date of the transfer. Your conveyancer or solicitor can confirm the exact date. If the transfer has already happened, a retrospective valuation can be prepared as at the relevant date using sales evidence from that time.