New CGT Rules Could Force Australians to Value Everyday Collectibles
Millions of Australians could be required to obtain valuations for personal collections, jewellery, artwork and other household assets under proposed capital gains tax (CGT) reforms, with accountants warning the changes could create a significant compliance burden and unexpected costs for families.
CPA Australia has raised concerns about the proposed reforms, which would require all CGT assets held on 30 June 2027 to have a market value established as the starting point for the new tax rules.
CPA Australia Tax Lead Jenny Wong told The Northern Rivers Times many Australians may not realise the changes extend far beyond investment properties and share portfolios.
“Most Australians think this reform is about investment properties and share portfolios – but it actually goes much further than that,” Ms Wong said.
Under current tax law, collectibles purchased for more than $500, including artwork, jewellery, rare coins, first-edition books and trading cards, are generally considered CGT assets. Personal-use assets valued above $10,000 may also fall within the rules.
If the reforms proceed, taxpayers would need to establish a defensible market valuation for these assets as at 30 June 2027.
Ms Wong noted that items such as vintage watches, coin collections, jewellery and collectible trading cards could all be affected, creating uncertainty for households attempting to determine which possessions require valuation.
She also warned inherited assets may be captured under the reforms.
“Think about grandma’s jewellery box – pieces accumulated over decades and passed down through generations. Families may be required to obtain formal valuations for each item before 1 July 2027,” Ms Wong said.
CPA Australia said the changes are likely to trigger a substantial increase in demand for tax advice, record-keeping assistance and professional valuation services, placing additional pressure on accountants and tax agents.
The organisation estimates the one-off transitional valuation burden could total between $675 million and $825 million nationwide, with formal valuations potentially costing hundreds of dollars per item.
CPA Australia has also expressed concerns about the proposed split-gain mechanism, warning it could result in some taxpayers paying tax on more than their actual economic gain where asset values fluctuate before and after the 2027 valuation date.
Ms Wong stressed that clearer guidance is needed to help taxpayers understand which assets are captured and how valuations should be conducted.
“The Treasurer has said this reform targets property speculators and high-income investors, but in reality it places new obligations on every Australian holding CGT assets – and on the accountants who support them,” she said.
“Without clearer guidance and simplification, the compliance burden on both taxpayers and the profession risks being significant and unfair.”
