--- title: "CGT valuation glossary" description: "Plain-English definitions of the terms behind the 1 July 2027 CGT split." url: "https://yourpropertyvaluation.com.au/glossary" publisher: "Your Property Valuation" --- # CGT valuation glossary ## CGT split (1 July 2027) *Also called: split point, split value, two-era CGT.* The CGT split divides the capital gain on an Australian investment property bought on or before 12 May 2026 into two eras at 1 July 2027. Growth up to 1 July 2027 can still use the 50% CGT discount; growth after it uses CPI indexation of the cost base instead. The property's value on 1 July 2027 is the split point. More: https://yourpropertyvaluation.com.au/cgt-guide ## 50% CGT discount *Also called: CGT discount.* The 50% CGT discount halves the taxable capital gain. Under the Budget 2026 changes it continues to apply to growth before 1 July 2027 for properties bought on or before 12 May 2026, and no longer covers growth after that date. More: https://yourpropertyvaluation.com.au/faq ## CPI indexation *Also called: cost base indexation, indexation method.* CPI indexation increases the property's cost base in line with inflation instead of applying a flat discount to the gain. It is how growth after 1 July 2027 is taxed. More: https://yourpropertyvaluation.com.au/cgt-guide ## Cost base The cost base is the amount the capital gain is measured from - broadly what was paid for the property. Under indexation it grows with inflation, and for Bucket A properties the certified value at 1 July 2027 becomes a permanent cost-base record to keep with the purchase contract. More: https://yourpropertyvaluation.com.au/cgt-guide ## Bucket A Bucket A is an investment property contracted on or before 12 May 2026. Its owner can choose between a certified valuation as at 1 July 2027 and the ATO's default time-based method to split the gain. Most Australian investment properties are in Bucket A. More: https://yourpropertyvaluation.com.au/blog/bucket-a-cgt-explained ## Bucket B Bucket B is a new build bought after 12 May 2026 and never lived in. It gets the 50% discount on the whole gain, or indexation instead. More: https://yourpropertyvaluation.com.au/blog/bucket-a-cgt-explained ## Bucket C Bucket C is an existing (second-hand) home bought after 12 May 2026. Indexation applies, with no second option. More: https://yourpropertyvaluation.com.au/blog/bucket-a-cgt-explained ## ATO apportionment formula *Also called: ATO default method, time-based apportionment, straight-line method.* The ATO apportionment formula is the default used when there is no certified valuation: it splits the gain by time held, assuming the property grew evenly across every year it was owned. Because most properties grew faster before 2027, it often understates the pre-2027 value. More: https://yourpropertyvaluation.com.au/blog/valuation-vs-ato-default ## Certified valuation *Also called: CGT valuation, certified property valuation.* A certified valuation is a formal, written valuation report prepared by a registered property valuer, valuing the property as at a specific date - here 1 July 2027 - following the ATO's approved valuation methodology. It is signed, dated and backed by the valuer's professional judgement, which is what makes it usable as evidence for tax purposes. More: https://yourpropertyvaluation.com.au/blog/what-is-a-certified-valuation ## Registered property valuer A registered property valuer holds current registration with their relevant state authority (API - Australian Property Institute - or equivalent). The ATO requires the CGT split-point valuation to come from one. More: https://yourpropertyvaluation.com.au/faq ## Desktop valuation A desktop valuation is completed remotely: the registered valuer uses comparable sales data, council records and property databases without visiting the property. It is faster and lower cost than an in-person valuation. More: https://yourpropertyvaluation.com.au/faq ## In-person valuation *Also called: full valuation, inspection valuation.* An in-person valuation involves a registered valuer physically inspecting the property - condition, improvements and location factors data alone cannot capture. It carries more weight in an ATO audit and is the type recommended for CGT purposes. More: https://yourpropertyvaluation.com.au/faq ## Retrospective valuation A retrospective valuation values a property as at a past date. Done after 1 July 2027 it may be accepted in some circumstances, but it typically produces a lower estimate, and any uncertainty is resolved in the ATO's favour. More: https://yourpropertyvaluation.com.au/faq ## Real estate agent appraisal An agent's appraisal is an opinion of price to help sell a property. It is not a certified document and does not satisfy the ATO's requirement for a CGT split-point valuation. More: https://yourpropertyvaluation.com.au/faq ## Valuation date The valuation date is the date the property is valued as at - for the CGT split, 1 July 2027 - which is different from the date the report is written. The report must value the property as it stood on 1 July 2027. More: https://yourpropertyvaluation.com.au/cgt-guide *General information only, not tax advice. Confirm your position with a registered tax agent or accountant.* Source: https://yourpropertyvaluation.com.au/glossary