Capital Gains Tax Valuation in Canberra: Preparing for 1 July 2027

If you own an investment property in Canberra, the capital gains tax (CGT) rules that have applied since 1999 are set to change. In the 12 May 2026 Federal Budget, the Government announced that from 1 July 2027 it will replace the 50% CGT discount with cost-base indexation and a 30% minimum tax rate on capital gains. The reform is not yet law — an exposure draft and ATO guidance are still to come — but the proposed start date gives owners a clear reason to get their records in order now.

For many Canberra owners, the single most useful step is establishing a defensible market value of the property as at 1 July 2027. Here is why, and what it means in practice.

What is changing on 1 July 2027

The reform applies to gains arising after 1 July 2027. Gains that accrued before that date stay under the current rules; gains after it fall under the new regime. In practice, a long-held property may need its gain apportioned across 1 July 2027.

	Until 30 June 2027	From 1 July 2027 (proposed)
Discount	50% CGT discount after 12 months	Cost-base indexation for inflation
Floor	None	30% minimum tax rate on the gain
Applies to	Individuals, trusts, partnerships	Same — super funds excluded

A few points worth knowing:

• Income support recipients (including pensioners) are proposed to be exempt from the 30% minimum rate.
• New builds keep a choice between the old and new arrangements.
• Self-managed super funds are excluded from this reform — though SMSFs still need annual valuations for their own compliance.

Because the measure is not legislated yet, the detail may shift. But the start date and the apportionment principle are clear enough to plan around.

Why a 1 July 2027 valuation matters

When a gain has to be split across 1 July 2027, the Australian Taxation Office accepts more than one method — including a formula based on the holding period, or an independent market valuation at the apportionment date. Where Canberra prices have moved unevenly (and they have), a valuation is usually the most defensible way to support the split in your return: it reflects what the property was actually worth on the day, rather than a straight-line estimate.

A valuation dated 1 July 2027 also becomes part of your permanent CGT record. Kept properly, it supports the cost-base position for years — long after the memory of the mid-2027 market has faded.

This is not tax advice, and a valuation is not a legal requirement. It is an evidence question: when you eventually sell, the stronger your contemporaneous evidence, the easier the apportionment is to stand behind. Our capital gains tax valuation page covers the process in full, and the CGT calculator gives a quick sense of the moving parts.

Why local matters in Canberra

Canberra is its own market. Values behave differently across Belconnen, Gungahlin, Woden, Tuggeranong and the inner north and south, and the city's leasehold land system adds nuance that interstate valuers do not always account for. A defensible 1 July 2027 valuation rests on local comparable evidence — recent sales of genuinely similar properties in the same pocket of the city.

Landmark Valuations is based in Belconnen and works across the ACT every week, so the comparables behind your valuation are local, current and relevant. That matters most for exactly the apportionment scenario above, where the figure has to hold up against the ATO's own data.

What to do now

You do not need to act on day one of the new rules, but a little preparation goes a long way:

1. Locate your records — the original purchase contract, settlement statement, and any capital improvement receipts (these feed the cost base).
2. Note your holding structure — individual, joint, trust or company changes how the reform applies.
3. Plan the 1 July 2027 valuation — diarise it now so the report is dated close to the changeover, while the evidence is fresh.
4. Talk to your accountant about whether apportionment by valuation or by formula suits your situation.

If you would like a tailored quote for a 1 July 2027 valuation on a Canberra property, you can request one here — or read more about our Canberra valuations and ACT coverage.

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Sources

• Tax reform — Budget 2026–27
• ATO — Reforming negative gearing and capital gains tax

Last verified 4 June 2026. The 1 July 2027 CGT changes are proposed and not yet law; confirm the final rules with your accountant or the ATO before acting.