Two ways to arrive at the 30 June 2027 amount
When a business, shares or other asset held across the date is eventually sold, the gain is split into the part that built up before 1 July 2027 and the part after. The law gives two ways to find the dividing line:
- The market value just before 1 July 2027, which for a private business means a valuation.
- An amount worked out under an apportioning method set by the government.
The choice is made in the tax return for the year of the actual sale, not on 30 June 2027.
What the calculation does
Treasury released a draft apportioning method on 4 August 2026 for real property and assets without a readily ascertainable market value. Professional commentary describes it as working backwards from the eventual sale price, assuming the asset grew at one constant rate over the whole time it was held.
It uses numbers such as the original cost, the eventual sale price and the time held. It does not look at the business itself.
The method was a draft at our review date (3 October 2026). Check its current status with your adviser.
What a valuation does
A valuation looks at the actual business at the date: its earnings, customers, recurring revenue, contracts, brand, intellectual property, people, systems, owner dependence, risks and market evidence. It asks a different question:
“What was this business actually worth?”
Neither approach is right for everyone. Whether to rely on a market valuation or the calculation is a tax decision, and it belongs to you and your accountant.
What the ATO expects of a market valuation
The ATO publishes guidance on market valuations for tax purposes. In plain terms it expects:
- A valuer with appropriate qualifications and experience, who is independent of the outcome.
- A documented process: the interest valued, the date, the basis of value, the information relied on, the method and the reasoning.
- Only information known or reasonably foreseeable at the valuation date. No hindsight.
- A secondary or cross-check method where possible.
No valuation carries ATO approval because of who prepared it: the ATO says acceptability usually depends on the valuation process. You can ask the ATO for a private ruling on an asset’s market value, but it will not give one on the market value for a future event, so no ATO confirmation of a 30 June 2027 value is available before that date.
More detail: the ATO’s market valuation guidelines in plain English.
Not built for the highest number
A valuation for tax is only useful if it holds up. An independent valuer is not there to produce the highest possible figure, or the lowest. The job is the most supportable market value from the evidence available, with the reasoning written down so your accountant can follow and test it.
Our CGT 2027 Valuation Package does not include a second-method cross-check at the fixed fee. If your accountant wants one, it can be added as additional work, quoted in writing before it starts.
Oliver Group provides valuation services only. Obtain taxation advice from your accountant or tax adviser as to whether the transition provisions apply to your circumstances. This page is general information, not tax, legal or financial advice.