Private ruling: The validity of a market valuation
Date of advice: 21 December 2016
Published: March 2016
Ruling period: 1 July 20XX to 30 June 20YY
Date scheme commenced: 1 July 20XX

Ruling: Q1: Can you use the midpoint of the supplied property appraisal, as the market value of your property for the purposes of calculating the CGT discount as a non-resident who owned the property before 8 May 2012 ? | A1: Yes

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. You acquired the property at a location (the property) prior to 8 May 2012. You were a non-resident of Australia on or after 8 May 2012, and the whole time between then and the sale of the property. You obtained a market appraisal from a real estate agent on or after 8 May 2012 estimating a value for the property in a small range. The real estate agent is appropriately qualified and has inspected and appraised the property in reaching these conclusions about the market value of the property. You sold the property in the 20XX income year and made a capital gain.

Relevant legislative provisions: Subdivision 115-A of the Income Tax Assessment Act 1997 | Subdivision 115-B of the Income Tax Assessment Act 1997 Section 115-105 of the Income Tax Assessment Act 1997 | Section 115-115 of the Income Tax Assessment Act 1997

Reasons for decision: Summary: Some of the things listed in the ATO valuation guidelines that the ATO will look at when evaluating a valuation include that it should be: • explained well enough to understand how the valuation was reached; • contemporary; • understandable; • undertaken by a qualified or experienced person. Your valuation is contemporary, having been done on the day in question. The valuer gives a description of how they came to their conclusion. The given range of the valuation is relatively small compared to the overall value of the property. The midpoint valuation appears reasonably reflective of the market value of the property as at 8 May 2012. Accordingly, in this particular case, for the purposes of calculating your eligibility for the CGT discount, the Commissioner is prepared to accept this as a valid market valuation.