If you’re a business owner in Australia, you’ve probably noticed that valuations are suddenly front and centre in every strategic conversation. It’s not just a passing trend; valuations have become the hot topic because of sweeping changes to Capital Gains Tax (CGT) announced in the 2026 Federal Budget.

The gamechanger: The 2026 Federal Budget

From 1 July 2027, the longstanding 50% CGT discount for individuals, trusts, and partnerships will be abolished. In its place, the government is introducing cost-base indexation (adjusting your purchase price for inflation) and a 30% minimum tax on all net capital gains. This is a fundamental reset that will affect how business owners plan, value, and eventually exit their businesses.

But here’s the kicker: for assets held before 1 July 2027, any gain accrued up to that date can still access the legacy 50% discount, while gains after that date are taxed under the new, less generous rules. The value of your business at the transition date becomes the critical reference point.

Why valuation evidence matters more than ever

Under the new rules, a robust, defensible valuation at 1 July 2027 is essential. Why? Because it determines how much of your capital gain is taxed under the old rules (with the 50% discount) and how much is taxed under the new regime. Relying on the ATO’s default formula could cost you dearly if it undervalues your business at the cut-off.

For many owners, the tax difference will be materially higher on the same sale price. Without a credible valuation, you risk paying more tax than necessary and facing greater uncertainty if your tax position is ever reviewed.

Who needs to pay attention?
  • Owners of private businesses, family businesses, and trusts
  • Anyone planning a sale, restructure, or succession event in the next few years
  • Those relying on small business CGT concessions (which remain, but now interact with the new rules in complex ways)
  • Pre CGT businesses, that are now also in scope from 1 July 2027
Why act now?
  • The quality of your valuation evidence at 1 July 2027 will directly impact your tax bill when you eventually sell.
  • Retrospective valuations are harder to defend and may not reflect true market conditions.
  • Steps can be taken to maximise the value of your business over the coming months.
  • The demand for expert valuation services is expected to spike as the deadline approaches—acting early means you’re not caught in the rush.
Maximising your valuation as at 30 June 2027

With the new CGT rules, the value of your business at 30 June 2027 will directly impact how much of your future capital gain is taxed under the old, more favourable regime. Maximising your valuation at this date is not just about getting a bigger number, it’s about ensuring you have robust, defensible evidence to support your tax position when you eventually sell.

To achieve this, you need to start planning now. The period leading up to 30 June 2027 is your window to:

  • Review and strengthen your business fundamentals: financial performance, customer relationships, contracts, and growth prospects.
  • Address risks and uncertainties that could impact value, such as owner dependence, staff structure, or lease terms.
  • Document and retain all relevant records, financial statements, budgets, forecasts, business plans, and agreements to support your valuation.
  • Engage with experienced advisers who understand both the technical and commercial drivers of value, and who can help you prepare a valuation that stands up to scrutiny.
How we can help and why you need to start now

Our team specialises in helping business owners prepare for valuation ahead of the CGT changes. We work with you to:

  • Identify and strengthen key value drivers in your business
  • Ensure your records and documentation are ready for a robust, defensible valuation
  • Prepare a formal valuation report that aligns with ATO expectations and supports your tax position
  • Provide ongoing advice to help you maximise your business value and make your next move your best move yet

Starting early is critical. Waiting until the last minute can mean missed opportunities to improve your valuation, rushed documentation, and greater risk if your position is ever reviewed. By planning now, you give yourself the best chance to maximise your after-tax outcome and safeguard your financial future.