Property investors across Australia are accelerating efforts to secure property valuations ahead of significant tax reforms scheduled to take effect in mid-2027. The Albanese government’s tax overhaul, described as a once-in-a-generation reform, will require all investment properties to be valued before July 1, 2027, prompting a surge in valuation inquiries.

Opteon, a leading property valuation firm, reported a 30 percent increase in client inquiries as investors seek to lock in valuations well in advance of the deadline. The company estimates that approximately 2.5 million investment properties will be impacted by the new requirements, encompassing around 2.3 million residential properties alongside 250,000 commercial and agribusiness holdings.

Scott Chapman, managing director of Opteon, explained that while formal assessments cannot be conducted until after the July 2027 implementation date, many investors are requesting property inspections now in order to expedite the process. He noted that if a property’s condition remains unchanged for a year, the preliminary inspection data could be used for the official valuation at a later date.

The tax reforms, including changes to capital gains tax (CGT) and negative gearing rules, were introduced in parliament in late May. Under the new framework, assets ranging from shares and properties to personal collectibles will require updated valuations to determine accurate tax liabilities.

Wilson Asset Management has expressed concerns about the financial impact of the reforms on taxpayers. In a submission responding to the exposure drafts, the firm projected national costs of up to AUD 4.5 billion to ensure compliance, based on the need for around 2.3 million household valuations, nearly one million business valuations, and approximately 85,000 valuations for farmers.

Geoff Wilson, chairman of Wilson Asset Management, criticized the valuation expenses as excessive. He argued that Australians should not be compelled to pay thousands of dollars solely to establish the true gains subject to taxation. Wilson warned that the initial valuation costs could surpass the capacity of Australian valuers by as much as three to five times.

Beyond the valuation fees, Wilson highlighted potentially wider economic repercussions. He estimated that the cumulative cost burden on Australian businesses could reach tens of billions of dollars once the reforms fully take effect, suggesting that the financial impact will extend well beyond the immediate compliance expenses.