Deceased estates and transfers within a family.

Australia has no inheritance tax, which is where most of the confusion starts. CGT arrives later, when the property is sold — and what it is calculated against depends on when the deceased acquired it.

Quick answer

When property passes on death, the beneficiary’s cost base depends on when the deceased acquired it. Pre-20 September 1985 acquisitions reset to market value at the date of death; later acquisitions carry the deceased’s cost base forward. A sale within two years of death can be exempt. Where property instead changes hands between living relatives below market value, the market value substitution rule replaces the actual consideration with market value at the transfer date.

In this cluster

4 guides, in the order they apply.

Establish the acquisition date before commissioning anything. For a post-1985 acquisition the deceased’s cost base usually carries over and a date-of-death valuation may be unnecessary — that one check can save the whole fee. Probate procedure differs by state: see our Brisbane, Sydney and Melbourne pages.

Start here CGT on inherited property The two-year rule, the date-of-death cost base reset, and when a valuation is needed. Read the guide Decide this first Pre-CGT property and 1985 Whether the deceased acquired before 20 September 1985 decides whether you need a valuation at all. Read the guide Living transfers Transferring property to family How market value substitution applies when property changes hands below market value. Read the guide Reference CGT events and valuation dates Which event fixes which date — death, transfer or sale. Read the guide

The service behind this

When you need the report, not the reading.

Fixed fees from $440 incl. GST for standard metropolitan residential. Quotes returned within 2 business hours, reports in 5 business days of inspection.

Deceased Estate Valuations

Retrospective Valuations

Fees and what moves a quote

Sources

Market valuation for tax purposes — Australian Taxation Office
Income Tax Assessment Act 1997 — Consolidated Act, AustLII
Australian Property Institute — Professional Practice Standards and the CPV designation

General information about how valuations are used for tax purposes. Not tax advice. Your accountant or tax agent should confirm which provision applies to your circumstances.

Written and reviewed by

Jarrad Khoury

Head of Valuations at Asset Valuations Group, where he leads the Business Valuation Services division. Over 10 years in property and business valuation. Registered Valuer in Queensland (Not Limited), Licensed Valuer in Western Australia (Not Limited), CPV through the Australian Property Institute (Not Limited), CPV and CBV through the Australian Valuers Institute, and Registered Business Valuer through the AIBB.

Last reviewed 15 September 2026 · About the practice · Editorial policy

Fixed fees from $440 incl. GST. Quotes returned within 2 business hours, reports in 5 business days.