I will keep this short. Because that is the point.


If you sell your business after 1 July 2027 and you cannot demonstrate what it was worth before or on that date, you will very likely pay more tax than you need to.


That is not a scare tactic. It is the mechanics of the new Capital Gains Tax changes.


Here is how it works. From 1 July 2027, the 50% tax discount that business owners have relied on for decades is being replaced. But, and this is the part that matters, any gain you built in your business before that date can still be protected under the old, more generous rules, regardless of when you actually sell.


The catch is that you need to be able to show what your business was worth at that point. The Government has indicated that a formal market valuation at 1 July 2027 will be accepted as the reference figure. Without one, the Tax Office applies a formula — a time-based split of your total gain across your whole ownership period. For most growing businesses, that formula produces a result that benefits only the ATO.


An independent business valuation, prepared as at 1 July 2027, gives you a documented, defensible number. It separates the value you built under the old rules from what comes after. That separation is worth real money.


This applies whether you run a café, a consulting firm, a trade business, a medical practice, a retail shop, or anything else. The industry does not matter. The size does not matter. What matters is whether you have evidence of what your business was worth before the deadline.


If you have been thinking about selling in the next few years, these changes may have already answered the timing question — selling before 1 July 2027 means the new rules do not apply to your transaction at all.


Do not wait until you are selling. By then, it may be too late.

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The CGT changes described here have been announced as part of the 2026 Federal Budget and are subject to legislation passing Parliament. Seek advice from a registered tax adviser regarding your specific circumstances.