Reference
Dividing a value between uses or periods — for example between the exempt main residence portion of a dwelling and the portion that produced income.
Australian Property Institute. The professional body whose Professional Practice Standards govern how a valuation is prepared in Australia.
A transaction between parties acting independently in their own interests. Where a transfer is not at arm’s length, the ATO substitutes market value for the stated price.
Automated valuation model. An algorithmic price estimate with no inspection or professional judgement. Not accepted as substantiation for tax purposes.
What you receive for a CGT asset on disposal. Where the transaction is not at arm’s length, market value is substituted under ITAA 1997 s116-30.
Valuing an income-producing property by dividing its sustainable net income by a market capitalisation rate. Used for commercial property alongside direct comparison.
Certified Business Valuer, a designation of the Australian Valuers Institute, held where business as well as property valuation work is undertaken.
The transaction or circumstance that triggers a capital gain or loss. The type of event determines the effective valuation date.
Settled sales of similar properties used as evidence of value, adjusted for differences in date, location, area, condition and improvements.
The total cost of a CGT asset for tax purposes, comprising five elements under ITAA 1997 s110-25. Deducted from capital proceeds to calculate the gain.
Certified Practising Valuer. The designation the ATO expects to see on a valuation prepared for tax purposes.
Where the law treats you as having acquired an asset at market value on a particular date rather than at the price you actually paid — as under s118-192 or on death.
Valuing a property by comparison with settled sales of similar properties, with stated adjustments. The primary method for residential valuation.
The date at which market value is assessed. Distinct from the inspection date and the report date, all three of which a proper report states separately.
The Federal Circuit and Family Court of Australia (Family Law) Rules 2021. Part 7 governs single expert witness reports. These replaced the Family Law Rules 2004 and the old Form 44A.
The most valuable legally permissible and physically possible use of a site. Relevant where a property’s current use is not its most valuable.
A transfer of an asset itself rather than cash — commonly a property contributed into or paid out of an SMSF. Requires a valuation at the transfer date.
An alternative to the CGT discount for assets acquired before 21 September 1999, adjusting the cost base for inflation to 30 September 1999.
An assessment based on external inspection only. Acceptable in limited circumstances but weaker than a full internal inspection.
The exemption from CGT for a dwelling that was your main residence, which may be full or partial depending on use and periods of absence.
The estimated amount for which an asset should exchange between a willing buyer and a willing seller at arm’s length, after proper marketing and with both parties acting knowledgeably.
The ATO’s Market Valuation Practice Instruction, which sets out what the Commissioner expects of a valuation prepared for tax purposes.
An asset acquired before 20 September 1985, generally outside the CGT regime — though the status is lost on death and in several other circumstances.
The figure used instead of the cost base when calculating a capital loss. It excludes the third element and is adjusted for certain claimed deductions.
The additional tax on superannuation earnings attributable to a total superannuation balance above $3 million, which received Royal Assent on 13 March 2026 and commences 1 July 2026. Its transitional cost base reset is measured at 30 June 2026.
The indexed figure used in s108-70 to test whether a capital improvement to a pre-CGT asset is a separate CGT asset. $187,962 for 2025–26. Use the figure for the year the CGT event happened.
A valuation of market value as at a date in the past, prepared using contemporaneous evidence together with a current inspection where possible.
Superannuation Industry (Supervision) Act 1993, and its regulations, which require SMSF assets to be reported at market value.
The ITAA 1997 provision that deems a former main residence to have been acquired at market value on the day it was first used to produce income.
Valuing land and improvements separately and adding them. Used for specialised property where comparable sales are scarce.
See effective date. The moment at which value is assessed, determined by the CGT event rather than by the valuer.
An accounting figure reflecting depreciation. Not market value, and not a substitute for it in a tax valuation.