iscover 1 July 2027 CGT reset: pre-order now, valued in the first week of July
TaxEvery valuer in the country will be working from the same week of evidence. Clients whose reports are pre-ordered are prepared first. How it works and what to brief.
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 practices have understood that much. What fewer have worked through is the timing, and that is where the next twelve months will be won or lost.
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. Turnaround that is measured in days in a normal week will not be measured in days in that one.
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 are hardest to call: 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: a Chartered Accountant, Registered Tax Agent (TPB 17532009) and Certified Property Valuer with the Australian Valuers Institute. The person signing the number understands the tax consequence of the number, which matters when the valuation date is itself the tax position.
Staging it across the year
The practices that will come out of this cleanly are treating the reset as a 2026-27 project rather than a June task. A workable sequence:
- Identify the clients where a valuation is clearly justified and pre-order their 1 July 2027 reports now.
- Work through the borderline clients over the next few months and pre-order those as each decision is made.
- Use the first half of 2027 to gather documents and brief clients, so nothing is chased in July.
Firms that would rather their clients saw the firm’s name on the order page, and firms that want a client letter template, a one-page client explainer and a practice checklist, will find them on the CGT valuations for accountants and tax agents page.
Full detail on how the reset works, what a report contains and how to pre-order is in the 1 July 2027 CGT valuation guide.
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