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Real Estate Insight

Capital gains tax

1 July 2027 CGT valuation: pay for one, or use Treasury's formula?

When you sell a property after 1 July 2027, you need its value on 30 June 2027. You can pay a valuer or use Treasury's free formula. Put in your purchase and expected sale, and see whether a valuation could save you tax, and in which direction.

By the Real Estate Insight team · Last reviewed 4 October 2026 · How we check our numbers

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Stamp duty, legal, inspections.

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Typically a few hundred dollars for a residential valuation.

Treasury's formula puts your 30 June 2027 value at $905,975

A valuation pays off if it comes in between $908k and $951k.

Using the formula, CGT on this sale is $45,187. Outside that range, even after the $600 fee, the formula costs less. The lowest tax comes from a value of about $928k, where the indexed value matches what you'd net from the sale.

CGT at different 30 June 2027 values

Value on 30 June 2027CGTvs formula
$770,000 (-15%) $83,787 +$38,601
$815,000 (-10%) $71,013 +$25,826
$861,000 (-5%) $57,954 +$12,768
$905,975 (formula) $45,187 –
$951,000 (+5%) $44,110 -$1,077
$997,000 (+10%) $54,920 +$9,733
$1,042,000 (+15%) $61,500 +$16,313

About this estimate. General information, not tax advice. A valuation has to be a genuine market value: you can't pick the number, so treat the band as a guide to whether one is worth ordering. One resident individual owner, CPI of 2.5% a year, latest legislated tax rates. Treasury's apportioning formula is a draft as at October 2026. Real Estate Insight is not a registered tax agent.

Why the 30 June 2027 value matters

When you sell, your gain is split in two at 30 June 2027. The part before that date keeps the 50% discount. The part after is taxed in full, but only above inflation. The value on 30 June 2027 decides where the split falls, so it decides how much of your gain is taxed each way.

How Treasury's formula works

The draft determination (consultation closed 21 August 2026) gives owners of real property a free alternative to a valuation. It works out one daily growth rate that turns your purchase price into your sale price over the days you owned it, then applies that rate up to 30 June 2027. Our calculator follows its nine steps exactly and matches its worked example to the cent.

When a valuation beats the formula

Tax on the sale is lowest when the 30 June 2027 value, indexed for inflation to the sale date, exactly matches what you net from the sale. That gives a clear rule of thumb:

  • Strong growth after July 2027: a valuation above the formula's figure saves tax, because more of the gain gets the discount.
  • Growth after July 2027 slower than inflation: a valuation below the formula's figure saves tax, because the extra gain lands where indexation shields it.
  • In between: the formula is often close to the best you can do, and a valuation fee isn't worth it.

For our default example (bought for $700,000 in July 2020, owner on $120,000, sold in July 2031), the formula puts the value at about $906,000:

Sale price in 2031Formula valueA valuation saves tax if it's
$850,000$792,023below about $788,000
$1,050,000$905,975between about $908,000 and $951,000
$1,300,000$1,037,817above about $1,040,000

A valuation has to be a genuine market value: you can't choose the number. Use this to decide whether ordering one is worth it, not to aim for a figure.

What we don't know yet

The determination is still a draft, and the ATO hasn't said what evidence it will accept for a 30 June 2027 value. We'll update this page when either changes, and log it in the changelog.

Questions people ask

Do I need a valuation on 1 July 2027?
No. You only need a 30 June 2027 value when you sell, and you can get it then: a valuer can value a property as at a past date. Or you can use Treasury's formula, which needs no valuation.
Can I get a retrospective valuation?
Yes. Treasury's explainer says the value is worked out in the tax return for the year you sell. A valuation done later, valuing the property as at 30 June 2027, is what most owners will use if they choose a valuation at all.
How does Treasury's formula work?
It takes your purchase price and your sale price and assumes the property grew at the same rate every day in between, compounding. The value on 30 June 2027 is read off that curve. It ignores what actually happened to prices, which is why a valuation can come out higher or lower.
Is a higher valuation always better?
No. A higher value puts more of the gain in the discounted, pre-2027 part. That helps when the property grows faster than inflation afterwards. If it grows more slowly, a lower value moves gain into the period where indexation shields it, and costs less tax.
Can I use the formula for one property and a valuation for another?
The draft lets you choose the method for each asset when you sell it. The formula is only available for real property and assets with no readily available market price, so listed shares use their market value.
Will the ATO accept an agent's appraisal or an online estimate?
The ATO hasn't said yet. Its guidance and tools were still being prepared in October 2026. A formal valuation by a certified practising valuer is the safest evidence.

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