Selling a property in South Australia? If it’s not your principal place of residence, chances are you’ll need to account for capital gains tax (CGT). Whether it’s an investment home, inherited property, or commercial site, a CGT property valuation is essential for calculating your tax obligation fairly and accurately.
This article explains how CGT property valuation works in SA, when it’s needed, who should conduct it, and how it affects your tax return.
What Is Capital Gains Tax (CGT)?
CGT is a federal tax levied on the profit (gain) made from selling an asset—including real estate—acquired after 20 September 1985.
You pay tax on the difference between:
- The sale price (less selling costs), and
- The cost base (purchase price + related costs + improvements)
When the cost base is unclear or needs to be reset (as in cases of inheritance, change of use, or lost records), a valuation is required to determine the property’s market value.
When Do You Need a CGT Property Valuation in South Australia?
- When selling an investment property
- When converting your main residence into a rental property
- If you inherited a property and later sell it
- If you gift a property or transfer it below market value
- When ownership is transferred between related parties
- If you’ve lost the original purchase documents
In each of these situations, the market value at a specific date is used to establish your CGT cost base.
Key Dates That May Require a Valuation
- Date of inheritance (if the property was acquired before 1985)
- Date property first rented (main residence to investment)
- Date of relationship breakdown or family court transfer
- Date of gifting or related-party transfer
- Date of subdivision or change in title structure
Who Can Provide a CGT Valuation in SA?
For ATO purposes, the valuation must be completed by a:
- Certified Practising Valuer (CPV)
- Member of the Australian Property Institute (API)
- Experienced in retrospective and tax-related valuations
Real estate agent appraisals are not accepted for CGT compliance, as they are not legally recognised or independently certified.
What’s Included in a CGT Valuation Report?
A professional CGT valuation includes:
- Valuation date relevant to the CGT event
- Full property description and location
- Analysis of comparable sales around the valuation date
- The valuer’s methodology and justification
- Market commentary (e.g. Adelaide trends at that time)
- The valuer’s signature, certification, and contact details
The report must be able to withstand ATO scrutiny, especially in audit scenarios.
How Is a CGT Valuation Conducted in SA?
Valuers will either inspect the property (if valuing the current date) or conduct a retrospective assessment based on historical data.
They consider:
- Market conditions on the valuation date
- Local area sales in places like Norwood, Glenelg, or Mount Gambier
- Features, size, and improvements
- Renovation history
- Zoning and land use at the time
If the property has been altered since the CGT date, valuers may use photographic evidence, council plans, or previous appraisals to determine past condition.
Capital Gains Tax Rates in Australia
CGT is part of your income tax, not a separate tax. Key points:
- 50% CGT discount applies if the property was held for more than 12 months
- The gain is added to your assessable income in the year of sale
- Different rules apply to companies, trusts, and SMSFs
Check with an accountant or tax agent for your specific situation.
Example of CGT with Valuation in SA
- You bought a property in 2000 for $250,000
- In 2010, you turned it into a rental
- You sell it in 2024 for $600,000
- You need a CGT valuation as of 2010 to set your new cost base
A valuer determines the 2010 market value was $400,000 → Your gain is calculated from there, not from the original $250,000.
Cost of CGT Valuation in South Australia
| Property Type | Estimated Valuation Fee |
| Standard residential property | $600 – $1,200 |
| Investment or rental property | $800 – $1,500 |
| Rural or lifestyle property | $1,200 – $2,500+ |
| Commercial or strata property | $1,500 – $3,000+ |
Retrospective valuations may attract higher fees due to the extra research involved.
How to Use Your CGT Valuation
- Provide the report to your accountant or tax agent
- Keep it for your tax records (minimum of 5 years)
- Submit it with your tax return if required
- Use it as evidence in case of an ATO review or audit
Conclusion
A professional CGT property valuation in South Australia ensures your tax obligations are based on accurate, fair, and ATO-compliant figures. Whether you’re selling a rental property in Adelaide, transferring land to family, or finalising an estate, working with a certified valuer is the smartest way to manage capital gains.