Key takeaways
Prepare dated evidence without assuming a new tax requirement
As checked on 17 October 2026, Division 296 is law, but does not say every privately owned business needs a new valuation. Ask your tax adviser whether your circumstances require evidence, rather than assuming a reference to 2027 creates a capital gains tax cost reset.
Trace the ownership chain to the interest being valued
A business may operate through several companies or trusts while property and funding sit elsewhere, so group earnings alone do not identify an owner’s interest. Prepare an ownership diagram with governing documents and reconcile internal balances to avoid counting assets twice or assuming every holding has identical rights.
Preserve records showing what was knowable at the date
A date-specific valuation needs the accounts, forecasts, contracts and operating facts available or reasonably foreseeable then, rather than a reconstruction driven by later outcomes. Keep a secure snapshot with source records and a separate chronology of later events so corrections and hindsight remain visible to the reviewer.
Obtain written instructions defining the asset and valuation date
A reporting deadline is not necessarily the date at which value must be measured, and different tax questions may require different instructions. Ask your adviser to specify the taxpayer, asset, provision, date and purpose, while documenting missing information and specialist needs rather than expecting a valuation to guarantee acceptance.
Label planning scenarios separately from actual valuation conclusions
A planning model can explore earnings, debt or ownership uncertainty, but is not automatically evidence of market value at a future date. Label hypothetical inputs and limitations, then refresh the evidence when formal instructions arrive and reconcile changes rather than retaining whichever earlier figure appears most favourable.
Confirm the legislation first
Division 296 is enacted and applies from 1 July 2026, but a reference to 2027 does not establish a valuation obligation for every private business or a general CGT cost-base reset. Ask your accountant to confirm the relevance of the operative rules to your circumstances and identify the particular asset, purpose and date. The first-year member balance test and any transitional asset measurement serve different purposes; a valuation brief must follow the adviser’s actual requirement, not the year in a page title.
Identify the interest and date
Map the ownership chain from the investor or fund to the underlying business. Shares, units and direct operating assets can require different analysis. Your accountant should confirm which interest needs to be measured and at what date. Do not substitute an anticipated financial reporting date for a legally relevant valuation date without that confirmation.
Prepare records without presuming an outcome
Collect ownership documents, accounts, loan balances and significant contracts, and establish how date-specific information will be retained. This preparatory work can make a later instruction more efficient even if the eventual requirements differ. Keep historical records distinguishable from subsequent developments, especially where trading conditions or capital arrangements change before the valuation is commissioned.
Signed
A clear valuation conclusion starts with an agreed purpose, relevant evidence and disclosed assumptions. The report identifies the interest valued and explains the reasoning behind its conclusion.
Define the planning deliverable
An initial scope can identify document gaps, valuation subjects and assumptions requiring adviser input. A valuation report, if commissioned, should then explain the selected method, evidence and limitations for the confirmed purpose. Planning assistance should not be described as an election, a legislative determination or a commitment to a particular tax result for the holder.
Avoid unsupported reset assumptions
This service does not establish a new cost base, a reset election or an entitlement tied to a particular date. Any Division 296 relevance remains subject to your accountant confirming applicable legislation. Related Division 296 valuation planning and SMSF interest valuations can be scoped once the required question is settled.
Build a dated evidence file, not a presumed tax outcome
As at 17 October 2026, Division 296 is law, not merely the earlier proposal: the ATO says it applies from 1 July 2026, with $3 million and $10 million thresholds for 2026–27. For that first year, the end-of-year total super balance test matters; subsequent years also consider the opening balance 1.
This does not make every privately owned business subject to a new valuation requirement. Ask your tax adviser whether your superannuation interests, underlying investments and circumstances require date-specific evidence. A reference to 2027 does not automatically reset ordinary business cost bases or create an election. Keep the adviser's dated instructions alongside the evidence pack, recording any unresolved interpretation separately from established facts.
Trace ownership through to the economic interest
Prepare an ownership diagram that connects the individual or superannuation fund to each company, trust, partnership and underlying operating business. Show ownership percentages, share classes, unit holdings and changes during the relevant period. Attach registers, constitutions, trust deeds and amendments, shareholder agreements and documents governing distributions, transfers or redemption.
Identify where property, intellectual property, equipment and working capital actually sit. A business may use premises held by a related trust while earning revenue through a separate company. Reconcile intercompany loans, unpaid distributions and external borrowings so the same asset or liability is not counted twice. Give the valuer the rights attached to the specific interest, rather than assuming its value equals a simple percentage of the group's operating value. Flag missing or disputed ownership documents for legal clarification.
Preserve what was knowable at the relevant date
Create a secure, read-only snapshot of accounting records, management accounts, bank reconciliations, debtor ageing, inventory, debt schedules and material contracts. Retain the forecasts and budgets actually available then, including their preparation dates, assumptions and approval history. Preserve source exports as well as summaries, with an index identifying the record owner, reporting period and any subsequent corrections.
Capture evidence of customer concentration, contract renewals, owner responsibilities, related-party charges and unusual expenses. These details help explain maintainable earnings rather than merely reproducing reported profit. Keep later events in a separate chronology: a later sale or contract loss should not silently replace information available at the valuation date. The ATO's valuation guide emphasises relevant, reliable information known or reasonably foreseeable at that date 2. Agree retention arrangements with your adviser; this checklist does not prescribe a universal statutory retention period.
Obtain written asset and date instructions
Ask the tax adviser to specify the provision being considered, taxpayer or fund, exact asset or interest, required valuation date, valuation basis and intended use. Distinguish a reporting deadline from the date at which value must be measured. Where several dates are under consideration, request separate instructions and explain which questions remain conditional.
The engagement should also identify intended report users, necessary specialist input, access restrictions and responsibility for supplying information. Agree how missing records, assumptions and scope changes will be documented. ATO guidance says a valuation must be objective and supportable, and identifies report particulars including purpose, scope, asset details and supporting records 3. The adviser determines the tax treatment; the valuer supplies evidence addressing the agreed valuation question, not a guarantee of ATO acceptance.
Keep planning scenarios separate from actual valuations
Use clearly labelled scenarios to explore record gaps, timing and sensitivity to earnings, debt or ownership assumptions. State the hypothetical date, inputs and limitations on every planning output. A scenario prepared today is not automatically evidence of market value at a future date.
When actual instructions arrive, refresh the evidence, confirm the applicable rules and commission the defined assessment. Reconcile differences from earlier scenarios rather than selectively retaining the most favourable figure. Keep the final report, instruction history and supporting calculations together, without presenting readiness work as tax advice or an established tax entitlement.
Scope, fees and timing
See our fixed-fee valuation packages and confirm the scope and fee before commissioning work. Confirm the purpose, intended users, information requirements and inclusions in a written engagement before work begins. Calculated Value and Limited Scope delivery is 5–7 business days from complete financial information and a signed engagement. Full Conclusion timing is confirmed individually in the engagement letter. Specialist requirements or changes to the instruction may affect suitability and timing; confirm these before relying on an external deadline.
Sources and further reading
Frequently asked questions
Does the reference to 2027 mean my business gets an automatic CGT reset?
No. A calendar year alone does not establish a CGT event, a new cost base or a valuation obligation. Ask your accountant to identify the applicable legislation and your circumstances before commissioning work. We can then scope the relevant interest and date, without assuming a blanket 2027 reset or a particular tax outcome.
Source: ATO — CGT events
Should I use the contract date or settlement date for my valuation?
For a sale under a contract, the ATO generally identifies the CGT event time as when the contract is entered into, rather than settlement. Other events can have different timing rules. Give your accountant the transaction documents and ask them to confirm the relevant event and valuation date before we prepare the instruction.
Source: ATO — CGT events
Will giving business shares to a family member avoid the need for a valuation?
Not necessarily. The ATO explains that receiving nothing for a CGT asset can trigger market value substitution for capital proceeds. Substitution may also apply where proceeds differ from market value and the parties are not dealing at arm’s length. Ask your accountant to assess the transfer before deciding what valuation evidence is needed.
If we agree a price within the family, is that enough for CGT?
An agreed price is not automatically the amount used for CGT. The ATO considers both the relationship and how the parties actually bargain when assessing arm’s length dealings. Where market value substitution applies, evidence of value at the CGT event may be needed. Your accountant should confirm the rule’s application to your transaction.
Can you value my business at an earlier date if I start preparing now?
A retrospective valuation may be possible if sufficient evidence exists for the required date. The ATO expects relevant, reliable information known or reasonably foreseeable at that date. Keep historical accounts, forecasts and transaction records separate from later developments, and let us assess evidence gaps before agreeing the scope or promising a completed report.
Do I need to value the whole business or just my shares or units?
Start with the exact asset your accountant identifies. A business, a shareholding and a unit holding are different valuation subjects; the ATO’s guidance recognises these different assets. Provide the ownership structure, governing documents and relevant rights so the instruction addresses your actual interest rather than assuming the whole business value is interchangeable with it.
What records should I gather before asking for a tax valuation?
Gather financial statements, management accounts, ownership records, debt details, significant contracts and available forecasts. Retain evidence showing what was known at the proposed valuation date. The ATO expects valuations to be supported by relevant information, so tell us about missing records early; reconstructing historical evidence may require a different scope from reviewing complete accounts.
What should I expect a CGT valuation report to explain?
The ATO identifies purpose, scope, asset details, relevant dates, supporting records and the value as core report information. Agree these matters with your accountant and valuer before commissioning work. Ask for the methodology, assumptions and limitations to be explained, rather than treating a short value figure as sufficient evidence for every tax purpose.
Source: ATO — Market valuation of assets
Will commissioning this valuation establish my Division 296 entitlement or election deadline?
No. A market valuation provides evidence of value for a defined purpose; it does not itself determine legislative eligibility, create a tax entitlement or establish an election deadline. Ask your accountant to confirm any Division 296 relevance under applicable legislation before instructing us. We do not assume a fixed election date or automatic entitlement.
Will an independent report guarantee the ATO accepts my value?
No report can guarantee acceptance. The ATO expects an objective valuation supported by appropriate evidence and recognises the credibility of professional valuations, but the facts and applicable tax provisions still matter. Agree a clear purpose and provide complete records; your accountant should assess how the report supports the tax position being taken.
Source: ATO — Market valuation of assets
A clear, independent view of value — with the evidence behind it.
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- Gain an independent perspective. Move forward with confidence.
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- Identify strengths, risks and opportunities through SWOT analysis.
WHAT YOU GET IN A LIMITED SCOPE VALUATION REPORT
Inside your IBV™ report
Executive Summary
Conclusion of value · Method selected · Valuer qualifications
Detailed Report
Maintainable earnings · Cap rate / multiple · Premise of value
The Evidence Pack
SWOT analysis · Top Performers Report · RAVDA score
APES 225 voluntarily aligned. Report depth and supporting analysis follow your agreed package and engagement scope.
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