- The ATO's guidance sets out what it expects a valuation report to cover, at a minimum.
- The report names the purpose, the exact asset and interest, the date and the standard of value.
- It explains the method, why it was chosen, and a cross-check.
- It shows the earnings, the adjustments and the evidence, and states assumptions and limitations.
- It ends with a single value, the valuer's identity, an independence statement, a signature and the issue date.
What the ATO expects
The ATO publishes guidance on market valuation for tax purposes. It says a valuation report should contain all the information needed to understand the analysis and show how the conclusions were reached. It lists what it expects a report to cover, at a minimum.
The ATO says the acceptability of a valuation usually depends on the valuation process followed rather than who conducted it. The ATO decides for itself whether to accept a valuation. A well-built report is how the process is shown.
Our Professional Valuation Report for CGT is built around that list. Here is what it contains, section by section.
1. Purpose
Why the valuation was done, and the CGT rule it relates to. For example: a gift of shares to a family member, the small business CGT concessions, a transfer to a related trust, or the 30 June 2027 split under the new rules. A valuation should fit the rule it is used for.
2. Scope and instructions
What we were asked to do, any limits on that, and any instructions that could affect the work. This reflects the written scope you accepted before paying.
3. The asset and the interest
Exactly what is valued. "The business" is not enough. The report states, for example:
- 100% of the goodwill of a business run by a trust
- 40 ordinary shares out of 100 in a named company
- 250 units in a named unit trust
- a one-third interest in a partnership
It also names the owner. A controlling holding and a minority holding in the same company can have quite different values, so this detail matters.
4. The valuation date
The single date the value speaks to. For a past date, the report makes clear that only what was known or reasonably foreseeable at that date was used.
5. Standard of value
Market value, defined in the report: the price a willing but not anxious buyer and seller would agree, both well informed, at arm's length. See what is market value for CGT.
6. The business
What the business does, its history, its customers, its people, its premises and its market at the date. This is the commercial story behind the numbers.
7. Earnings and adjustments
The earnings a buyer would rely on, and how they were reached from the accounts. Typical adjustments include:
- replacing owner drawings with a market-rate wage
- removing one-off income or costs
- bringing related-party rent or charges to market rates
- removing personal expenses run through the business
Each adjustment is listed with its reason.
8. Method and cross-check
The method used, such as capitalising maintainable earnings, and why it suits this business. The ATO recommends a second method, where possible, to test the first. The report shows both.
9. Evidence
The market evidence used to support the multiple or rate, and the information relied on: its source and how far it was checked.
10. From business value to the value of the interest
How the value of the business becomes the value of the interest: adding surplus cash and non-business assets, taking off debt, and then any adjustment for control, minority or marketability.
11. Assumptions and limitations
What was assumed, what was not available, and how gaps were dealt with. The ATO's guidance says missing information should be identified in the report. Any material differences from earlier valuations or the original cost are explained.
12. Conclusion
A single market value, and why that figure was chosen.
13. The valuer and the signature
The identity of the valuer responsible, a declaration of independence and any conflicts, the guidelines followed, and the date the report is issued. APES 225 Valuation Services is the guidelines we follow. The report is signed by the valuer responsible.
What the report does not do
- It does not say whether a tax rule applies to you.
- It does not calculate your capital gain or your tax.
- It is not built to produce a high or low number.
Those first two are for your accountant or tax adviser. The third is the point of independence.
What we need from you
- the purpose and the valuation date, ideally confirmed with your accountant
- financial statements, tax returns and management accounts
- ownership documents, leases and key contracts
- records from around the date, and answers to our questions
See documents for a CGT valuation.
Get a fixed fee
Every CGT valuation we do is a signed Professional Valuation Report, with the fee fixed by the business's annual revenue, from $1,495 + GST for revenue under $1 million. See pricing or choose your revenue band below.
General information only, current at 10 November 2026. We value businesses and business interests; we do not give tax advice. Your accountant or tax adviser decides whether a rule applies to you.