If you own an investment property and plan to keep it beyond 1 July 2027, this is an important date to put on your radar.

Australia's Capital Gains Tax (CGT) rules are changing. Gains that build up before 1 July 2027 will generally remain under the existing CGT discount rules, while gains accruing from that date will generally move to a new inflation-based system, together with a 30% minimum tax on real capital gains.

For property investors caught across both systems, this raises an interesting question:

Should you get your investment property valued around 1 July 2027?

While the official ATO answer isn't necessarily yes, we increasingly believe obtaining a valuation for your investment property assets on 30 June 2027 will be important to manage your CGT outcomes. The government is still developing the proposed "apportionment" method for capital gains calculations when investors have not arranged a property valuation on 30 June 2027. The details released to far suggest that having a valuation will result in a cleaner calculation under the more favourable discounted CGT rules that apply until 30 June 2027.

The CGT changes were enacted as law on 26 June 2026, and a second tranche of legislation with changes and amended details was introduced to parliament on 14 October 2026.

Why does 1 July 2027 matter?

Think of 1 July 2027 as a line in the sand.

The Government has designed the reforms so that capital growth before 1 July 2027 isn't simply swept into the new system. Instead, the existing CGT discount can continue to apply to the part of the gain that accrued before the change.

That means investors who own a property across the transition may eventually need to distinguish between its pre- and post-1 July 2027 capital growth.

Why might a valuation help?

Imagine you bought an investment property for $600,000 and by 1 July 2027 it is worth $1 million.

You might not sell for another 10 or 15 years. By then, establishing exactly what the property was worth back in 2027 could be more difficult.

Having good evidence of its value around the transition date could make that future CGT calculation easier to support.

And that's the key point: you may not need the valuation in 2027. You may need the evidence years later when you sell.

Does everyone need a formal valuation?

No. A formal valuation around 1 July 2027 is not automatically required for every investment property. For some investors, a real estate agents appraisal letter may be sufficient. However, if you want greater certainty and peace of mind, the stronger valuation evidence of a formal valuation would be worth paying for.

Importantly, a valuation may be worth considering if:

• your property has a large unrealised capital gain;
• the property is unusual or difficult to value;
• you own a commercial property or development site;
• construction or development is underway; or
• the eventual CGT liability could be significant.

Thinking about selling?

If a property sale is already on your horizon, the reforms also make timing worth reviewing.

That doesn't mean you should sell simply because the tax rules are changing. Tax is only one consideration alongside rental income, debt, transaction costs, the property's prospects and your broader financial plans.

But if you're sitting on a substantial capital gain and were already considering selling, comparing the potential outcomes before and after 1 July 2027 could be worthwhile.

What should property investors do?

There's no need to rush out and order a valuation for every investment property immediately on 30 June 2027. However, the more time that elapses after that date, the more difficult a valuation becomes. Doing it in the first few months after 1 July 2026 will help.

Most importantly, keep those records. They could become valuable many years from now when you eventually sell.

Important information

This article contains general information only and does not take into account your objectives, financial situation or needs. Tax outcomes depend on individual circumstances and the legislation applying at the relevant time. Consider obtaining appropriate financial and tax advice before acting.