- Foreign and temporary resident individuals, including beneficiaries of trusts and partners, are not entitled to the full 50% CGT discount for gains after 8 May 2012.
- For an asset acquired on or before 8 May 2012, the ATO describes two ways to work out the discount: a pro rata method, or a market value method if you were a foreign or temporary resident on 8 May 2012.
- The market value method needs the asset's market value at 8 May 2012, so a valuation at that past date may be useful.
- Foreign and temporary residents are generally taxed in Australia only on taxable Australian property, such as assets used in a business carried on through a permanent establishment in Australia.
- Your accountant or tax adviser decides which method applies and whether it suits you; we value the asset at 8 May 2012.
The 8 May 2012 rule in plain words
Before 9 May 2012, foreign resident individuals could generally claim the same 50% CGT discount as Australian residents. From that date, the law changed. The ATO's current guidance says foreign and temporary resident individuals, including beneficiaries of trusts and partners in a partnership:
- are subject to CGT only on taxable Australian property
- are not entitled to the full 50% CGT discount for gains after 8 May 2012
For assets bought after 8 May 2012 and held while a foreign or temporary resident the whole time, there is no discount. Where you were an Australian resident for part of the time, an apportioned discount may apply.
Assets held on 8 May 2012
For an asset acquired on or before 8 May 2012, the ATO describes two methods. If both apply, you can choose:
- Pro rata method. If you had a period of Australian residency after 8 May 2012, the discount is spread by the number of days you were a resident after that date.
- Market value method. If you were a foreign or temporary resident on 8 May 2012, the discount can be worked out using the asset's market value on that day.
Broadly, the market value method compares the market value at 8 May 2012 with the cost base at that date. The growth that had built up by then is the part that can keep the discount. Growth after that date generally cannot.
This is why the value at 8 May 2012 matters. It is a value at a single past date, and it should be the genuine market value at that date. An independent valuation is not built to produce a high or low figure.
Which method to use, and how the result flows into your tax return, is for your accountant or tax adviser. We do not calculate the discount or your tax.
Which business assets this can involve
A foreign or temporary resident is generally taxed in Australia only on taxable Australian property. The ATO's list includes:
- assets used to carry on a business through a permanent establishment in Australia, such as the goodwill and plant of an Australian business
- an indirect interest in Australian real property, for example a holding of 10% or more in a company or trust whose assets are mainly Australian land and buildings
- options or rights over either of these
Whether a particular asset falls in these categories is a tax question for your adviser. Once they confirm what is in scope, we value it.
Valuing a business at a date years ago
A value at 8 May 2012 is a retrospective valuation. The valuer looks at the business as it stood then, using information that was known or reasonably foreseeable at that date. What happened to the business afterwards is generally left out. See our page on retrospective CGT valuations for how hindsight is handled.
Typical evidence includes:
- financial statements for the years ended around 30 June 2011 and 30 June 2012
- management accounts or reports close to May 2012
- the customer base, contracts and leases in place at the time
- the share or unit register at the date, if the asset is shares or units
- any offers, finance applications or valuations from around that time
What the valuation report covers for this purpose
The report states the asset valued, the owner, the valuation date of 8 May 2012 and the purpose. It sets out the standard of value (market value), the information relied on and its dates, the method and earnings used, adjustments, market evidence, assumptions and limitations. It is signed by the valuer responsible. We follow the APES 225 guidelines on valuation services.
What we need from you
- confirmation from your accountant or tax adviser that a value at 8 May 2012 is needed, and for which asset
- what is being valued: the business, shares, units or a partnership interest
- financial statements around 2011 and 2012, and tax returns if available
- ownership records at 8 May 2012
- any dated documents from the time, as listed above
Get a fixed fee
The fee is fixed by the annual revenue of the business, starting at $1,495 + GST for revenue under $1 million. Use the price tool below, or see pricing for every band.
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.