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1 July 2027 CGT reset. What does this mean? On 1 July 2027 every CGT asset held by an individual, trust or partnership is treated as sold and reacquired at market value.
On 1 July 2027 every CGT asset held by an individual, trust or partnership is treated as sold and reacquired at market value. Growth before that date keeps the 50 per cent discount. Growth after it is taxed under cost base indexation and the 30 per cent minimum rate. The number that decides how much of each client’s gain sits on either side is the 1 July 2027 market value, and the client chooses how to establish it when they lodge for the year of sale. Most tax professionals have understood that much. What fewer have worked through is the timing, and that is where the next twelve months is vital. A 1 July 2027 value cannot exist before 1 July 2027 A valuation as at the 1 July 2027 reset date has to be prepared on the sales evidence at that date. Nobody can finalise one in advance. That means every valuer in Australia will be working from the same week of evidence, for every client of every practice that decided a valuation was worth having. It is a capacity problem with a date on it. Orders placed in the June 2027 work programme will sit behind every other order placed in the June 2027 work programme. How pre-orders work A pre-order places the client in the queue now. The report is prepared in the first week of July 2027 on the evidence at the valuation date, signed, and delivered to the firm or the client’s portal. Nothing is finalised early and nothing is estimated. The order simply exists before the rush does. Several properties can be placed on one instruction. The valuer needs the address, the interest being valued, the purpose, any changes that affected condition at the valuation date, and supporting documents. Difficult dates and unusual assets are flagged before the order is committed, not after. Why a dated valuation keeps the choice open The alternative to a valuation is Treasury’s apportioning method. The draft determination compounds a single daily growth rate from purchase price to sale price and reads off an implied value at 1 July 2027. It was released as an exposure draft in August 2026 and, as at the date of this article, has not been registered. CPA Australia and the FAAA have both asked for the compounding approach to be replaced with a simple days-held split. If that happens, the direction of the result changes for a large share of clients. A client with a valuation on file compares both figures at the time of sale and elects the better one. A client without one takes whatever the final instrument prescribes, supported by whatever evidence survives from a date that may by then be a decade old. The valuation does not commit the client to anything. It keeps the election open. That matters most for the clients who’s CGT assets are the hardest to calculate: uneven growth, capital improvements the formula cannot see, unusual property, or a long holding period. For those clients a dated valuation is cheap insurance against a method that has not yet been settled. What the report is and who signs it Reports are desktop valuations prepared from the sales evidence and property data at the valuation date, with comparable sales set out so the figure can be followed by an auditor or the ATO. Each report is signed by the valuer who prepared it. Staging it across the year The CGT assets holders who will come out of this cleanly are treating the reset as a 2026-27 project rather than a June task. A workable sequence:
27 October 2026 By Mike Wilczynski |
