Taxation Based Valuations

McLean Gladstone provides comprehensive property valuation services for a wide range of taxation implications across South Australia. As an independent property valuer and certified property valuer, we deliver accurate, defensible reports essential for Capital Gains Tax, Stamp Duty, and Rating Issues (including Land Tax, Council Rates, Emergency Services Levy, and SA Water). Our expertise ensures compliance and helps optimize your tax position.
 

1. Capital Gains Tax (CGT) Valuations When you sell an investment property in Australia that was acquired after September 1985, capital gains tax may apply to any profit realised. To accurately calculate your CGT property valuation liability, a formal valuation report becomes the basis for your Australian Tax Office (ATO) submission. Our property valuation for CGT purposes reports can be conducted on a current market value basis or, more commonly, as a retrospective property valuation.
 

Key Scenarios for CGT Valuations:

• Vacating a Primary Residence & Renting It Out: If your former home becomes a rental property, it's deemed subject to CGT from that date. A retrospective valuation can help establish its value at that point, potentially reducing future tax liability.

• Moving Into an Investment Property: If you begin occupying a former rental property as your primary residence, a retrospective valuation to the date you moved in is required to state the fair market value to the ATO.

• Non-Resident CGT Changes: For non-resident individuals, the 50% CGT discount was removed for gains accrued after 8 May 2012. A retrospective valuation prior to this date can help claim the CGT discount for gains accrued before the change.
   

Our valuation for capital gains tax purposes reports are designed to provide the objective and supportable data required by the ATO. We work closely with accountants and financial planners to ensure your capital gains valuation of property is precise and beneficial to your position.
 

2. Stamp Duty Valuations - Stamp duty, also known as transfer duty, is a state government tax payable upon the transfer of ownership of an asset, most commonly real estate property. In South Australia, it is generally charged on transfers of residential and primary production land, with the buyer responsible for payment. The amount of stamp duty is calculated on a sliding scale based on the property's value.   A stamp duty valuation is often required when property ownership is transferred between related parties (e.g., family members) or when property is transferred into a superannuation fund or various other trusts and legal entities, especially if the transaction price is significantly below market value. The stamp duty tax is then payable based on the valuation report provided by a registered property valuer.  
 

Important Considerations for Stamp Duty in SA:

• Foreign Buyers: Foreign buyers purchasing residential land in South Australia may incur an additional foreign ownership surcharge, typically 7% of the property's value, on top of the standard stamp duty.  

• First Home Buyers: As of June 2024, South Australia has abolished stamp duty for first-home buyers who buy or build a new home, with no property price caps. However, this exemption does not apply to established homes.  

Our property valuation for stamp duty purposes reports contains detailed information on the physical attributes of the property, current market sales evidence, and professional valuation rationale, ensuring you do not pay more tax than necessary.  
 

3. Rating Issues: Land Tax, Council Rates, Emergency Services Levy (ESL), and SA Water In South Australia, the Valuer-General independently determines the Site Value and Capital Value for all rateable properties annually. These statutory valuations are then used by various rating authorities—RevenueSA (for Land Tax), Local Government Authorities (for Council Rates), RevenueSA (for Emergency Services Levy), and SA Water (for sewerage charges)—to determine your annual rates and taxes.  

• Site Value: Used for Land Tax, this is the value of the land excluding structural improvements, but including site improvements like draining, filling, or clearing.  

• Capital Value: Used for Council Rates, ESL, and SA Water charges, this is the value of the land including all improvements such as buildings and structures.  
   

Objecting to Statutory Valuations: If you believe your property's Site Value or Capital Value has been incorrectly assessed (too high or too low), you have the right to lodge a formal objection with the Office of the Valuer-General.  

• Deadline: Objections must be lodged in writing within 60 days of receiving your first rates notice for the financial year from any rating authority (e.g., council, SA Water, RevenueSA).  

• Evidence: The "onus of proof" rests with the taxpayer, requiring you to provide compelling evidence. This typically includes an independent property valuation report from a Certified Practising Valuer and detailed sales reports of comparable properties sold around the 1 January valuation date.  
   

McLean Gladstone's local property valuer team has extensive experience in preparing robust valuation reports to support land tax objections, council rates objections, and challenges to emergency services levy valuations and SA Water rates valuations. We understand the mass appraisal methodology used by the Valuer-General and can identify discrepancies that may lead to an inflated assessment.
 

Why Choose McLean Gladstone for Taxation Valuations? As a leading property valuer in Adelaide and across South Australia, McLean Gladstone offers expert, unbiased real estate valuation services for all your taxation needs. Our licensed property valuers are highly qualified and experienced in providing precise valuation of property reports that stand up to scrutiny from the ATO and state revenue authorities. Whether you need a residential property valuation or a commercial property valuation for tax purposes, contact our team today for reliable advice and a professional valuation on property.