What a retrospective valuation actually is
A retrospective valuation states what a property was worth on a specific date in the past. It is not today's value adjusted backwards by an index, and it is not an agent's appraisal with an old date typed at the top. It is a market value opinion built from sales that settled around the valuation date, analysed as a valuer would have analysed them at the time.
That distinction matters because the ATO treats a valuation as evidence, not as an assertion. A number without contemporaneous sales behind it is not evidence of anything, which is why so many rejected valuations fail on their comparable sales schedule rather than on the figure itself.
When the ATO expects one
A retrospective valuation is required whenever the cost base or the taxable portion of a gain depends on a historical market value rather than a price actually paid.
A main residence that was first used to produce income after you moved outProperty inherited from a deceased estate where the date-of-death value sets the cost baseTransfers to family members, trusts or an SMSF for no consideration or below market valueA change in the use of the land, such as a subdivision or a conversion to commercial useReconstructing a cost base where original purchase records have been lostIf more than one of these applies to the same property, you usually need more than one valuation date. We work that out with your accountant before quoting rather than after.
How a valuer reconstructs a past market
The work starts with title and planning history, so the property is valued in the physical and legal state it was actually in on the valuation date, not the state it is in now. Renovations, subdivisions and zoning changes since then all have to be stripped back out.
From there the valuer assembles verified sales that settled in a window around the valuation date, adjusts them for differences in land size, condition, aspect and location, and tests the result against the direction the wider market was moving at the time. Where the property has since been sold, that sale is a useful sanity check but never the primary evidence.
Choosing the right valuation date
The single most common error we correct is the date. It is rarely the settlement date and rarely the date the accountant noticed the issue. For a former home it is the day the property was first used to produce income. For an inherited property it is the date of death. For a below-market transfer it is the date of the contract.
Get the date wrong and the entire report is unusable, however good the evidence behind it. If there is any ambiguity, we confirm the date in writing with you and your tax agent before the engagement starts.
What a defensible report contains
A report that survives review reads like a documented argument rather than a certificate.
A clear statement of the valuation date, the interest valued, and the purposeFull property description as at the valuation date, with title particularsA schedule of contemporaneous comparable sales with adjustments explainedThe valuation approach used and why it was chosenAssumptions, limiting conditions and any restrictions on the inspectionSignature and API membership details of the Certified Practising ValuerCommon questions
Can a valuation be backdated by twenty or thirty years?
Yes. Sales evidence for most Australian markets is available back to the introduction of CGT in 1985. The further back the date, the more time is spent sourcing and verifying evidence, which is reflected in the quote.
Do you need to inspect the property for a retrospective valuation?
Where the property is accessible, an inspection is preferred because it helps establish what has changed since the valuation date. Where it is not, a kerbside or desktop assessment supported by historical photographs, plans and records is appropriate and is disclosed in the report.
Will the ATO accept a real estate agent appraisal instead?
Generally no. An agent appraisal is a marketing opinion, not an independent valuation, and it does not carry the methodology, evidence schedule or professional certification the ATO expects for a market value substitution.
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