Current Market Valuations for transfers and compliance.
A current market valuation establishes what a property is worth today, at arm's length, on the date of inspection. It is the report the ATO expects whenever an asset changes hands without a genuine open-market sale — a transfer between related parties, a contribution into a self-managed super fund, or a property split under a family law settlement.
Quick answer
A current market valuation states a property's value today, for a related-party transfer, an SMSF in-specie contribution or a family law settlement. It is built from a physical inspection, title and planning research and current comparable sales, and signed by a Certified Practising Valuer. Fixed fees from $440 incl. GST, delivered in 5 business days.
What is a current market valuation?
A current market valuation is an independent assessment of the price a property would realise in an arm's length transaction between a willing buyer and a willing seller, as at the date of inspection. It is prepared to the same standard as a retrospective report — full inspection, comparable sales evidence, a stated methodology and a signed certification — but the effective date is today rather than a date in the past.
When a current valuation is required
Whenever a property moves without an open-market sale, the ATO substitutes market value for the stated consideration. These are the situations we are engaged for most often:
- Transfers between related parties — parent to child, or between entities under common control.
- In-specie contribution or acquisition of business real property by a self-managed super fund.
- Family law property settlements and consent orders.
- Company or trust restructures, and transfers in or out of a discretionary trust.
- Marriage or relationship breakdown rollovers under Subdivision 126-A.
- Buy-out of a co-owner, or partition of jointly held land.
How we establish market value
The direct comparison approach carries most residential valuations: settled sales of genuinely comparable properties, adjusted for date, location, land area, condition and improvements. For income-producing commercial property we also apply the capitalisation of net income approach and cross-check the two.
- Full internal and external inspection, with photographic record.
- Title search, planning overlays and permitted-use confirmation.
- A curated schedule of settled comparable sales from the same suburb and value bracket.
- For commercial: lease review, net income analysis and market capitalisation rates.
Real estate appraisal vs registered valuation
A market appraisal from a selling agent is not a substitute. The ATO, SMSF auditors and the courts all require an independent registered valuation.
What the report contains
Reports are issued as a signed PDF, formatted so they drop straight into your workpapers, audit file or court bundle.
- Property identification, inspection date and photographic record.
- Statement of valuation methodology, assumptions and limiting conditions.
- Schedule of comparable sales with full addresses and adjustments.
- Signed certification by a Certified Practising Valuer.
How it works — five steps
Worked example: an investment unit transferred to a family trust
Illustrative example
An individual transfers an investment unit to their own family trust for nominal consideration. Both sides need a market value at the transfer date — and it is the same figure used twice, for two different taxpayers.
- The effective date is the date of the transfer.
- We inspect internally and externally and record condition, fit-out, aspect, parking and any owners-corporation issues.
- We analyse settled comparable sales in the same complex and comparable complexes, adjusted for floor level, aspect, size and condition.
- The market value substitution rule replaces the nominal consideration, so the transferor’s capital proceeds become the market value rather than what was actually paid.
- The same market value becomes the trust’s first-element cost base, so the report is addressed to both parties and their advisers.
- State duty is assessed on the dutiable value of the same transfer, so where the duty date matches we state both purposes on the face of the report.
The trap. Nominal consideration does not reduce the CGT. The transferor is assessed as though the unit sold at market value, and the trust acquires at that value — so understating the figure reduces this year’s gain and increases the trust’s gain later, without saving anything overall.
This scenario is constructed to illustrate the method and the sequence. It is not a client matter, contains no client information, and is not a prediction about your property. Which provision applies to your circumstances is a question for your accountant or tax agent.
What goes wrong
The errors we are asked to correct are almost never errors of judgement about value. They are procedural, they are made before anyone thinks to involve a valuer, and they cost more to fix than to avoid.
Assuming a nominal price sets the tax. The market value substitution rule replaces the consideration entirely. Transferring at $1 does not create a $1 disposal, and the difference is assessable to the transferor.
One purpose stated, two purposes relied on. A report addressed only to the accountant, silent on the duty position, invites the revenue office to ask why it should be accepted. Ask for both purposes at the quoting stage.
A stale valuation. A current market valuation is current at its effective date. Where a transfer is delayed by months and the market has moved, the figure needs revisiting rather than reusing.
Sources
- Market valuation for tax purposes — Australian Taxation Office — the eight valuation fundamentals
- Income Tax Assessment Act 1997 — Consolidated Act, AustLII
- Australian Property Institute — Professional Practice Standards and the CPV designation
This page is general information about how valuations are used for tax purposes. It is 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
FAQs
Current market valuation questions, answered.
The questions clients, accountants and solicitors ask us most often.
How current does the valuation date need to be?
For most compliance purposes the valuation should be dated within 90 days of the transaction. SMSF annual valuations must reflect market value as at 30 June of the relevant financial year.
Can you value the property without going inside?
A kerbside or desktop assessment is possible, but an internal inspection produces the strongest report and is what we recommend wherever access can be arranged.
Do you value commercial and rural property?
Yes. Commercial, industrial and rural valuations are quoted individually and typically take 7–10 business days, as they require lease analysis and a wider evidence search.
Will one report cover both CGT and stamp duty?
Usually yes — the market value conclusion is the same. Tell us at the quote stage if a state revenue office has a specific format requirement and we will match it.
How much does a current market valuation cost?
Standard metropolitan residential valuations start from $440 incl. GST. Commercial, rural and specialised properties are quoted individually, with the fee fixed in writing before we begin.
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