Capital gains Tax Valuations are now one of the most interesting of valuation requirements given the recent changes announced and legislated by the Federal Government in June 2026.
The only properties generally exempt from Capital Gains Tax are those occupied as the principal place of residence for their entire period of ownership. If the property is leased out for part of the period, the period not occupied as the principal place of residence is subject to Capital Gains Tax for the affected time period.
Rural properties incorporating a dwelling have the ATO Small Business CGT Concessions (such as the 15-year exemption or active asset reduction) and the partial main residence exemption for the family home up to 2 hectares.
Importantly if the farm has a dwelling used as a principal place of residence an exemption of a 2-hectare parcel incorporating the main dwelling may be obtained. This would involve obtaining a profession property valuation to determine the value of the associated 2-hectare parcel, dwelling and associated residential improvements which could include garaging, swimming pools, tennis courts and the like. This could particularly amount to a significant percentage of the overall property value on smaller high value parcels which may be impacted by proximity to residential precincts, water views or high value lifestyle locations.
Kelly and Fitzgibbon can assist with capital gains tax valuations across all key property categories including:
- Residential properties
- Commerial and Industrial properties
- Rural properties
Capital gains tax concessions are generally only available when properties are held in the names of individuals and superannuation funds. Assets held in company structures have no Capital Gains Tax discounts or reduced rates.
For more information relating to the key changes to Capital Gains Tax legislated June 2026 see our recent post regarding the critical changes and the implications for property owners and the need for updated valuations for impacted property owners – Key Capital tax Changes for Property Owners – July 2026
Call us today Tel: 03 9596 0000 – Melbourne | Tel: 03 5977 1056 – Mornington or complete the contact form setting out your requirements and we will assist you with your property valuation and advice requirements.
