Retrospective Property Valuations for CGT.
A retrospective valuation establishes the market value of a property at a specific date in the past — used to set a CGT cost base, apportion a main residence exemption, or substantiate the value of an inherited asset. We have prepared thousands of retrospective reports across Australia, dating back as far as 20 September 1985.
Quick answer
A retrospective valuation establishes a property's market value at a date in the past — commonly a pre-CGT date, a date of death, or the day a former home first produced income. We prepare them back to 20 September 1985 from a current inspection plus contemporaneous evidence, signed by a Certified Practising Valuer. Fixed fees from $440 incl. GST.
What is a retrospective property valuation?
A retrospective property valuation is an independent assessment of a property's market value as at a date in the past, prepared by a Certified Practising Valuer in accordance with the Australian Property Institute's Professional Practice Standards and the ATO's Market Valuation Practice Instruction (MVPI). It uses contemporaneous comparable sales, current physical inspection, and historical records to produce a defensible figure that will support a CGT calculation, an estate distribution or a transfer between related parties.
The legal framework
Three layers of authority govern retrospective valuations for tax purposes. Each shapes a different aspect of the report — what counts as market value, when an independent valuer must be engaged, and how the ATO assesses the result.
- ITAA 1997 s110-25 / s116-30 — establishes the cost base and capital-proceeds rules, including market value substitution.
- ITAA 1997 s118-192 — the 'home first used to produce income' rule that deems acquisition at market value when a former home becomes a rental.
- ATO Market Valuation Practice Instruction (MVPI) — the practical expectations for documentation, methodology and qualifications.
- API Professional Practice Standards (PS, ANZVTIP) — the technical standards every CPV must follow when issuing a valuation.
When is a retrospective valuation required?
Retrospective valuations are needed whenever the ATO needs market value at a date other than the sale date. The most common triggers we see are:
- Property purchased before 20 September 1985 that has since changed character or use after that date.
- A main residence first used to produce income (s118-192 ITAA 1997).
- Inheritance — establishing date-of-death market value to reset the beneficiary's cost base.
- Change in trust deed, ownership structure or in-specie SMSF contribution.
- Family law settlements requiring historical asset values.
- GST margin scheme valuations as at 1 July 2000.
Evidence we use to value the past
Retrospective valuations rely on contemporaneous evidence — sales that settled within a reasonable window of the effective date, current physical inspection where possible, and historical records describing the property's condition at the date in question. Our typical methodology layers:
- Sales evidence from RP Data, Pricefinder and APM going back to 1985.
- Council records, planning approvals and historical aerial photography.
- Original purchase contracts, prior valuations and renovation records where available.
- Adjustment for time, location, and area, condition and improvements.
Real estate appraisal vs registered valuation
The ATO does not accept real estate agent appraisals as substantiation for material CGT positions. The table below summarises the key differences.
ATO-compliant report format
Every retrospective valuation we issue follows the API Professional Practice Standards and the ATO MVPI. The report is structured so your accountant can lodge it with confidence and so the valuation withstands ATO review or objection.
- Property identification and inspection summary.
- Statement of valuation methodology and assumptions.
- Schedule of comparable sales with full address and adjustment matrix.
- Signed certification by a Certified Practising Valuer.
- Statement of qualifications and limitations.
How it works — five steps
Worked example: a deceased estate with a 2011 date of death
Illustrative example
A house is sold in 2026. The owner died in March 2011 and had bought the property in 1996. The executor needs the market value at the date of death, because that is the cost base the beneficiaries inherit.
- The effective date is fixed by the death, not by the sale or the grant of probate — March 2011.
- We inspect the property as it stands in 2026 and record its current condition and improvements.
- We establish what the property was like in March 2011 from the historical record: the 2011 rate notice, the title and any building approvals, plus photographs if the family has them.
- We analyse sales that settled around March 2011 in the same suburb and value bracket, and adjust them for the differences between those properties and this one as it stood in 2011.
- Any capital improvement made after March 2011 is excluded from the retrospective figure and noted separately, because it was not part of the asset at the effective date.
- The report states the effective date, the methodology, the comparable schedule with addresses and adjustments, the assumptions, and the valuer’s certification.
The trap. The 2026 renovation is the part most often got wrong. A figure that reflects the kitchen the beneficiaries installed in 2019 overstates the 2011 cost base, and the error runs in the taxpayer’s favour — which is exactly the direction a reviewer looks first.
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.
The wrong date. An A1 disposal uses the contract date, not settlement; a deceased estate uses the date of death, not the date of the grant. A technically excellent report at the wrong effective date is worthless and cannot be amended into correctness.
Post-date improvements left in. Where the property has been renovated since the effective date, the retrospective figure must exclude the work. This is the single most common substantive error we are asked to correct.
Evidence destroyed before it was needed. Rate notices, old contracts and photographs get thrown out in a house clearance. They are the cheapest evidence there is, and once gone the property at the effective date has to be reconstructed from title and planning records alone, which costs more and produces a weaker report.
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
Retrospective valuation questions, answered.
The questions clients, accountants and solicitors ask us most often.
How far back can a retrospective valuation go?
We routinely value to 20 September 1985 — the start of the CGT regime. Earlier dates are possible (we have prepared 1970s valuations for legacy estate work) where sufficient evidence exists.
Do you need to inspect the property today?
Yes, in almost all cases. The accepted methodology pairs a current inspection with historical evidence describing the property as at the effective date.
Will the ATO accept a retrospective valuation?
Yes, where it is prepared by a Certified Practising Valuer to the API Professional Practice Standards and the ATO MVPI, with a full comparable sales schedule and signed certification.
Can a real estate agent appraisal be used instead?
No. The ATO does not accept agent appraisals as substantiation for material CGT positions — an appraisal is a marketing opinion, not an independent assessment.
How much does a retrospective valuation cost?
Standard metropolitan residential retrospective valuations start from $440 incl. GST. Commercial, rural and multi-date assessments are quoted individually.
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