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Valuation Types

Capital Gains Tax Valuation

Capital Gains Tax (CGT) is a tax on the profit made from selling certain types of property.


Most main residences (principal places of residence) are exempt from CGT; however, investment properties, business premises, and holiday homes are subject to the tax.


A CGT property valuation report helps determine the capital gain or loss by assessing the property's value at relevant points in time.


You can obtain a capital gains tax property valuation when you first purchase your investment property or choose to have a retrospective CGT valuation when selling. In either case, CGT valuations must be completed by an experienced Certified Practising Valuer.
 

Stamp Duty Valuations

Stamp duty is a government tax applied to property transactions, and its amount is based on the property's market value or purchase price, whichever is higher.

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A Stamp Duty Valuation ensures that the correct amount of duty is paid by establishing the fair market value of the property at the time of transfer.

 

This is particularly important for:​

  • Related-party transactions, where the sale price may not reflect market value.

  • Gifting property, where no price is set.

  • Transfers within trusts or companies.

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While obtaining a market assessment appraisal from a real estate agent is possible, it’s usually a general estimate and is not legally enforceable. Only Certified Practising Valuers, accredited by the Australian Property Institute, can offer reliable market assessment valuations.
 

Financial Reporting Valuations

Businesses, trusts, and organisations require Financial Reporting Valuations to comply with accounting standards. 

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These valuations are essential for:

  • Annual financial statements to reflect fair asset value.

  • Balance sheet reporting for property-owning entities.

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Bluestone Valuations is experienced in undertaking property valuations for financial reporting purposes in accordance with the Australian Accounting Standards Board (AASB) and International Financial Reporting Standards (IFRS).

SMSF Valuations 

Self-Managed Superannuation Funds (SMSFs) holding property assets must obtain periodic valuations to comply with Australian Tax Office (ATO) regulations.

 

When undertaking a property valuation for SMSF purposes both the market value and market rent can be assessed. It is common for non-arm’s length leases to be in place between SMSFs and related entities, and it is a requirement that these leases are structured within market parameters. 

 

SMSF managers are required to prepare annual financial reports which include the market value of assets held within the SMSF. Bluestone Valuations is able to provide yearly assessments to ensure accurate reporting and compliance with ATO requirements.

Rental Advice Valuations 

A Rental Advice Valuation provides an expert assessment of fair market rent based on location, property condition, and comparable leasing evidence.

 

When undertaking a market rent valuation, it is essential to understand both the lease terms and any relevant legislation governing the lease. In many cases, this includes the provisions of the Retail Leases Act 2003 (Victoria) and the Retail Leases Act 1994 (New South Wales).

Key lease terms such as incentives, outgoings, review formulas, and permitted use are critical factors in assessing market rent.

 

‘Market rent’ is defined by the International Valuation Standards Council (IVSC) as:

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“The estimated amount for which an interest in real property should be leased on the valuation date between a willing lessor and a willing lessee on appropriate lease terms in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.”

Building Insurance Valuations 

An accurate insurance replacement valuation is essential to ensuring your investment is adequately insured in the event of a disaster.

 

An insurance replacement valuation estimates the replacement cost of a property. This is the estimated total cost, as of the valuation date, to reconstruct the property to its original condition—not better or more extensive than when new.

 

The valuation assumes reconstruction using modern equivalent materials, including:

  • Demolition and debris removal

  • Professional fees

  • Upgrades to meet current building regulations, in accordance with the Building Code of Australia and local council regulations

 

The replacement cost estimate considers the following:​

  • Demolition and removal of debris

  • Building costs

  • Landscaping and site works

  • Professional fees

  • GST

  • Escalation of building costs during demolition, design, and tendering

  • Escalation over a 12-month insurance period

  • Contingency allowances

Pre-Sale/Pre-Purchase Valuations

A Pre-Sale Valuation helps sellers set a realistic asking price, while a Pre-Purchase Valuation assists buyers in ensuring they pay a fair amount.


These valuations consider:

  • Recent comparable sales and market trends.

  • Property improvements and zoning changes.

  • Market demand and economic conditions.

 

Unlike real estate agent appraisals, an independent valuation by a Certified Practising Valuer offers an objective assessment.

Immigration Property Valuations

When applying for a temporary or permanent residency visa, you may be required to provide a formal property valuation. The Immigration Department or your agent will request an official written report stating the current fair market value of your residential property to support your citizenship application.

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It is crucial to demonstrate that your property asset holds significant value, ideally matching or exceeding the original purchase price. A certified property valuation from a qualified professional is essential in meeting these requirements.

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