Tax Time Valuation – Why Accurate Property Valuations Matter
As the end of the financial year approaches, many property owners and investors across Australia start preparing their tax returns. Amid receipts, statements, and forecasts, one critical task is often overlooked: getting an accurate property valuation. Whether you own residential or commercial property, a tax time valuation can have a direct impact on your financial outcome.
Why Do Property Valuations Matter at Tax Time?
A property valuation is a professional, objective estimate of your property’s market value as of a certain date. At tax time, this becomes more than just a number. It helps you:
- Calculate Capital Gains Tax (CGT): When selling an investment property, you may need to pay CGT on the difference between the purchase and sale price. If you don’t have records of the original value, a retrospective valuation can establish the correct starting point.
- Support Depreciation Claims: If your property is used to generate income, an accurate valuation helps identify eligible assets and supports the creation of a compliant Tax Depreciation Schedule.
- Inform Investment Strategy: Knowing your property’s current value lets you measure return on investment, assess performance, and plan future property decisions more confidently.
- Comply with ATO Requirements: If you’re transferring property between family members or entities, the ATO may require evidence of market value. A formal valuation ensures compliance and reduces audit risks.
Common Scenarios That Require Tax Time Valuations
1. Property Sale or Disposal
Selling a property? If you’ve made improvements or owned it long-term, a valuation may be required to correctly calculate CGT and ensure accurate reporting.
2. Change of Use
If your property’s use has changed (e.g., from principal residence to investment), the value at that point becomes the new cost base. A valuation helps lock in this figure.
3. Estate Planning or Transfers
In situations involving deceased estates or family transfers, an independent valuation helps with fair asset distribution and tax compliance.
Why Choose Herron Todd White?
Herron Todd White is Australia’s largest independent property valuation and advisory firm. With a national presence and deep expertise across residential, commercial, and agribusiness markets, our team delivers:
- ATO-compliant valuation reports
- Accurate, localised insights across 100% of Australian postcodes
- Timely, trusted advice that supports better tax decisions
Whether you’re in Brisbane, Sydney, Perth or a regional town, our valuers understand your market and your tax-time needs.
Getting a valuation at tax time isn’t just about ticking a box. It’s about making informed, compliant, and financially savvy decisions. If you’re planning to sell, claim depreciation, or transfer ownership, don’t rely on guesswork.
Talk to the experts at Herron Todd White today. Let us help you take the guesswork out of tax time.
And if you haven’t yet organised a Tax Depreciation Schedule, now’s the perfect time, our team can help you maximise your deductions before June 30.
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