A retrospective property valuation is a market value of a property on a specific date in the past, worked out from the sales and market evidence available around that date. It is used for capital gains tax records, SMSF values, deceased estates and separations. At APAVAL a past date costs the same as today's date: a desktop assessment is $99 + GST ($108.90 incl. GST).
When do you need a value on a past date?
The common reasons are:
- A home becomes a rental. The market value when it was first used to produce income can matter for capital gains tax. See valuing your home when it becomes a rental.
- An inherited property. Executors and beneficiaries often need the value at the date of death. See deceased estate valuations.
- SMSF records. Trustees value fund property at market value each year, usually at 30 June. See SMSF property valuations.
- Separation. Family law matters may need values at more than one date. These are quoted separately and start at $1,650 + GST ($1,815.00 incl. GST).
How is a past-date value worked out?
The valuer looks at what similar properties sold for close to the valuation date, the state of the market at the time and the property's features on that date. Sales after the valuation date are generally not relied on for the value itself. The report states the date, the purpose, the evidence used and the assumptions made.
Desktop or inspected?
A desktop assessment (no inspection) gives an indicative value of a standard home, unit or vacant lot. The Australian Property Institute recommends a full inspection report where the tax system relies on the value, so for complex or high-value property, or where the value may be tested, choose an inspected report. Your accountant decides which suits. Compare them in desktop vs inspected valuations.
What does it cost?
The same as a current valuation: Desktop Property Assessment $99 + GST ($108.90 incl. GST); Tax, Transfer & Compliance Valuation $495 + GST ($544.50 incl. GST). A second date for the same property is $149 + GST ($163.90 incl. GST).
Questions
Does a past-date valuation cost more?
Not at APAVAL. Past dates cost the same as today's date. A second date for the same property is $149 + GST ($163.90 incl. GST).
How far back can a property be valued?
Most dates can be valued from sales records. Dates before 1985 are quoted individually because older sales records are thin.
Is a retrospective valuation accepted by the ATO?
The ATO doesn't approve or accredit valuers or valuations for CGT purposes. It sets out what makes a valuation reasonable, and your accountant decides what evidence to use. We value property; we don't give tax advice.
Sources
This guide is general information, not tax, financial or legal advice. We value property; your accountant, auditor or lawyer decides how a value is used and what evidence they accept. The ATO does not approve or accredit valuers or valuations for CGT purposes.