Do You Need to Value Your Assets Before 2027?
Updated: 7 minutes ago
If you own a medical practice, investment property, or other business assets, you're probably wondering: Do I need a valuation before the new CGT rules kick in?
For many of you, the answer is yes, and the key date is 30 June 2027.
In our latest video, we explain why this date matters, which assets need valuation, and whether the government's apportionment method is a viable alternative.
If you hold assets, you'll want to watch.
Related: Understanding the New CGT Rules
Not sure what the CGT changes actually are? Click here to start with our explainer:
The Line in the Sand: 30 June 2027
Here's the key concept: on 30 June 2027, for CGT purposes, you're treated as having sold your assets and then reacquired them.
No tax is paid. No money changes hands. But from that point forward, how your capital gain is calculated changes completely.
Growth before 30 June 2027 → Eligible for the 50% CGT discount
Growth after 1 July 2027 → Subject to the new indexation method
Your assets' value on that date determines how much of your gain falls into each bucket. That's why getting it right matters.
Which Assets Need a Valuation?
Unfortunately, it's probably most of them.
Assets that DON'T need a valuation:
Shares in listed companies
Units in listed unit trusts
Anything with readily available market data
Assets that DO need a valuation:
Investment properties
Goodwill in your medical practice
Privately held business interests
Other unlisted investments
You may not need a valuation if:
You're using the small business CGT concessions
Your business is very new with minimal growth
The value is immaterial
My advice? Don't self-assess. Talk to your accountant to make sure you're capturing everything you need by 30 June 2027.
Can't I Just Use the Government's Apportionment Method?
We hear this a lot: "Do I really need to bother with a valuation if I can just use the government's formula later?"
My advice: err on the side of caution and get a valuation anyway.
Here's why: The government's draft apportionment formula assumes straight-line growth over the life of your asset. But that may not reflect reality.
If your practice or property has grown significantly before 30 June 2027, a market valuation provides evidence of that growth, growth that qualifies for the more favourable 50% CGT discount.
The good news? You don't have to choose your method now. You can decide in 10 or 15 years when you actually sell. But if you want the option to use the market value method, you must have evidence at 30 June 2027.
What's Next?
The government hasn't released the final version of its apportionment methodology yet. Once that's clear, we'll be able to advise clients more specifically on which method makes sense for their situation.
In early 2027, GrowthMD will be rolling out staged plans to help clients with:
Asset valuations
Documentation requirements
Preparation for the 30 June 2027 deadline
But if you have questions before then, don't wait reach out to our team now.
Important information: This article contains general information only and does not constitute tax, financial, or legal advice. Legislation is still being finalised. Please consult your advisor before taking action.
