The market value of your business at 1 July 2027 is now a permanent input into every future capital gain calculation. The practical questions are when to have the valuation done, and whether it can be prepared after the date and assessed back to it. There is no deadline, backdating is permitted, and the strongest position is a report finalised once FY2027 accounts are settled, usually between August and November 2027.
The Bottom Line
A valuation cannot be finalised before 1 July 2027, and it does not have to be finalised immediately after it. A report signed later that assesses value as at 1 July 2027 is a retrospective valuation, which is recognised professional practice. What governs acceptability is the valuation date and the information available at that date, not the date on the signature page. The evidence weakens the longer you wait.
Is there a deadline for the 1 July 2027 valuation?
No. Assets held at 30 June 2027 are deemed to be sold and immediately reacquired just before 1 July 2027. The event triggers no immediate tax liability. It separates the gain that retains the existing 50% discount from the gain that falls under the new regime.
The choice between a market valuation and the alternative apportionment method is made when lodging the tax return for the year of the actual sale, potentially a decade later. Nothing requires a valuation to be obtained in 2027, and nothing is lodged with the ATO in 2027 to evidence the value.
That is a timing freedom, not a reason to defer indefinitely. The value being evidenced is fixed at a single national date, and the evidence supporting it decays from that date onward.
Can a valuation be backdated to 1 July 2027?
Yes, subject to one condition.
The statutory valuation date is fixed at 1 July 2027. The timing of the valuer’s work is not prescribed. A report signed in December 2027 assessing value as at 1 July 2027 is a retrospective valuation, and retrospective valuation is recognised professional practice. It is used routinely for deceased estates, family law matters and historical tax positions.
The condition is that the report cannot rely on information that could not have been known at the valuation date. A retrospective valuation is judged on its information set, not on the valuer’s calendar.
The Commissioner has not published a deadline for obtaining the valuation and is unlikely to do so. ATO market value guidance focuses on the process: the qualifications of the valuer, the methodology applied, the evidence relied on, and whether the reasoning is documented. Acceptability is determined by how the valuation was undertaken, not when the report was signed.
What a valuer can and cannot use after the date
The working rule is that the valuer may use what was known or reasonably knowable at 1 July 2027, and must exclude what only became apparent afterwards.
Can be used: FY2027 financial statements and management accounts, budgets and forecasts approved before 1 July 2027, the order book and contracted revenue at that date, transaction and market data published to that date, and industry conditions as they were understood at the time.
Cannot be used: a major contract won in October 2027, a competitor’s collapse in 2028, actual FY2028 trading results, transaction multiples observed after the date, or a downturn that nobody foresaw at the time.
The distinction is commercial, not academic. Consider a manufacturer that signs a significant new supply agreement in October 2027. The agreement lifts the business materially, but it cannot be reflected in the 1 July 2027 value, because at the valuation date it was neither contracted nor reasonably knowable. A valuation that quietly absorbs it, through a forecast built on 2028 knowledge or a multiple drawn from later market data, is hindsight. It is also straightforward to identify on review, because the valuer’s own evidence carries dates after the valuation date.
There is one nuance. Events after the date can be used to confirm a condition that already existed at the date, but not to introduce something new. A customer insolvency in August 2027 may corroborate a receivables risk that was visible in June. It does not licence a valuer to rebuild the forecast with hindsight.
Why 1 July itself should not be rushed
A valuation report cannot be properly finalised before its valuation date. The ATO does not accept prospective assessments, and a value cannot be concluded for a date that has not yet occurred.
FY2027 ends the day before the valuation date, so the FY2027 accounts describe the period immediately preceding it. Those accounts are the single most relevant evidence base, and they are rarely settled on 2 July. A report finalised in September on settled FY2027 figures is more defensible than one signed on 2 July using draft numbers that are later revised. A restatement after the report is issued is the weakest outcome of all, because the figure supporting the tax position no longer matches the financial record it was built from.
How late is too late
| When the report is prepared | Evidential position | Principal risk |
|---|---|---|
| Before 1 July 2027 | Not possible as a final report. The date must exist before it can be valued. | Treating a pre-date estimate as the transition value. |
| July to November 2027 | Strongest available. FY2027 records and market data are complete and current. | Valuer capacity, because every affected taxpayer in Australia shares one valuation date. |
| Late 2027 to 2029 | Acceptable, provided the valuer works strictly from information available at 1 July 2027. | Hindsight creeping into forecasts and comparables. |
| At the eventual sale, years later | Weakest. The valuer is reconstructing a market that has long since moved. | Records and people are gone, and the valuation is commissioned once the tax consequence is already known. |
The middle two rows are both acceptable positions. The difference is how much work is required to defend them.
What this means in practice
Engage a valuer in the first half of 2027 and finalise the report once FY2027 accounts are settled, usually August to November 2027. Allow three to six months of preparation before that:
- Normalise the financial records, separating personal and non-recurring items from maintainable earnings
- Reconcile the share register and confirm the ownership position of each holder
- Agree a process with shareholders, ideally a single valuation every holder can rely on rather than competing reports
- Identify and document the assets in scope, including intellectual property held separately from the operating entity
Booking early matters more than it usually would. Every affected taxpayer in Australia is working to the same valuation date, and valuer capacity in the second half of 2027 is finite.
The record pack to preserve at 30 June 2027
If you defer the valuation, the deferral is only safe if the evidence is preserved. Retain a dated record pack reflecting the position at 30 June 2027:
- FY2027 financial statements and the final management accounts
- Forecasts and budgets approved before 1 July 2027, with evidence of the approval date
- Recent board papers and minutes
- The order book and contracted revenue position
- The share register and any shareholder agreements
- Active key contracts, including customer, supplier, licence and lease agreements
- The asset register, including intellectual property and any patent or trademark filings
Store it as a single dated file. The pack is what makes a later valuation defensible, and assembling it in 2027 costs almost nothing compared with reconstructing it in 2032.
Why the valuer’s licensing and standards position matters
ASIC classifies equity valuation as a financial service under the Corporations Act. Sherwood Australia holds Australian Financial Services Licence 563351, covering equity valuations, and is an AVI Certified Business Valuer (AVI 20281). Reports are prepared in accordance with the principles of APES 225 Valuation Services and the International Valuation Standards.
For a retrospective valuation this matters more than usual. Where the report is prepared after the valuation date, scrutiny falls on the process and on the qualifications of the person who ran it. A licensed, standards-based process, documented at the time, is what makes a backdated valuation hold.
Frequently asked questions
Do I need a business valuation before 1 July 2027?
No. There is no requirement to obtain a valuation in 2027. The choice between a market valuation and the apportionment method is made when you lodge the tax return for the year you actually sell the asset. Preparation before 1 July 2027 is worthwhile, but the report itself cannot be finalised until the valuation date has passed.
Can a 1 July 2027 valuation be prepared after that date?
Yes. A report signed after 1 July 2027 that assesses value as at 1 July 2027 is a retrospective valuation and is recognised professional practice. It must rely only on information that was known or reasonably knowable at the valuation date.
Is there an ATO deadline for obtaining a 1 July 2027 valuation?
No deadline has been published and one is unlikely. ATO market value guidance focuses on how a valuation was undertaken, including the valuer’s qualifications, the methodology and the evidence, rather than on when the report was signed.
When is the best time to have the valuation done?
Between August and November 2027, once FY2027 accounts are settled. FY2027 ends the day before the valuation date, so those accounts are the most relevant evidence base. A report built on settled figures is more defensible than one signed on 2 July using draft numbers that are later revised.
Can a valuer use information that emerged after 1 July 2027?
No, with one narrow exception. Later events may be used to confirm a condition that already existed at the valuation date, but not to introduce information that was not knowable then. New contracts, later trading results and post-date transaction multiples all sit outside the information set.
What happens if I wait until I sell?
It is permitted, but it is the weakest position. The valuer is reconstructing a market that has moved, records and staff may no longer be available, and the valuation is being commissioned at a point when the tax consequence of the answer is already known.
Does the deemed disposal on 30 June 2027 create a tax bill?
No. The deemed sale and reacquisition triggers no immediate tax liability. It marks the dividing line between the gain that retains the existing 50% discount and the gain that falls under the new regime.
What records should I keep at 30 June 2027?
FY2027 financial statements and management accounts, forecasts approved before 1 July 2027, board papers, the order book, the share register, active key contracts and the asset register including intellectual property. Retain them as a single dated pack.
Disclaimer
This article is general information only and does not constitute tax, legal or financial advice. It addresses the timing and evidential treatment of valuations at the 1 July 2027 transition date and does not assess any individual asset or tax position. You should obtain advice specific to your circumstances before acting.