CGT Cost Base Reports.
Independent estimates of your construction and improvement costs.
When the receipts for an owner-built home, renovation or improvement can’t be found, a CGT Cost Base Report gives your accountant a quantity surveyor’s estimate to work from. Residential reports $395 + GST. Reports prepared with qualified quantity surveying expertise.
Fictional property · estimated improvement costs
Fictional property and figures, for illustration only. A cost estimate is not a valuation or tax advice.
Evidence for the improvement costs in your cost base
When you sell an investment property, capital gains tax (CGT) is generally worked out from what you receive for the property less its cost base. The cost base is what the property cost you, plus certain other costs, including capital costs of improving it.
If the records of those improvement costs are missing, a CGT Cost Base Report provides an independent estimate, prepared with qualified quantity surveying expertise, of what the construction or improvement works cost. Your accountant can then use it when they work out your cost base.
The five elements of a cost base
Source: ATO, Cost base of assets. A CGT Cost Base Report relates to element 4. Costs you can claim as a tax deduction, such as capital works deductions, are not included in the cost base.
When a CGT cost base report is useful
A report is designed for situations where the original cost records aren’t available.
Owner-built homes and extensions
You built or extended the property yourself, or managed the work, and no complete cost records exist.
Renovations without receipts
Kitchens, bathrooms, decks and other improvements where the invoices were never kept or can’t be found.
Properties being sold
You are selling, or have recently sold, and your accountant needs support for the improvement costs.
Properties bought before 20 September 1985
The ATO says major improvements made to a pre-CGT property after that date may be subject to CGT.
Lost or unavailable records
The builder is no longer trading, records were lost, or the previous owner can’t provide them.
Accountants and tax agents
Your client is selling and needs an independent estimate of the improvement costs. Talk to our team about ordering for your clients.
Three simple steps to your report
Order online. Our team assesses the information available for the property and prepares your report.
Tell us about the property and the works
Complete the online enquiry or order form, with what you know about the improvements and when they were done.
Our team assesses the information
We review the plans, photos and other property information available. Where a site survey is required, an additional fee may be charged.
Receive your CGT Cost Base Report
You get your completed report to give to your accountant when they work out your capital gain.
Clear, upfront pricing
Fees are shown separately so you know what to expect.
CGT Cost Base Report
For residential properties, including owner-built homes, renovations and improvements.
- Estimate of construction and improvement costs, prepared with qualified quantity surveying expertise
- A written report for your accountant or tax adviser to use when working out your cost base
Site survey, where required
Where a site survey is required, an additional fee may be charged.
Commercial properties
Quoted individually, because every commercial property is different.
Not sure yet?
Send us your property details and we will help you work out what you need.
What the ATO says about your records
General information only. Confirm how it applies to you with your tax adviser.
Keep records of improvements
The ATO says you must keep records of every transaction or event relevant to working out a capital gain or loss, including details of improvements such as extensions or additions. Keep them for 5 years after the CGT event.
Missing records
For improvements to an investment property, the ATO suggests asking the builder for a copy of the receipt for payment. Where actual costs can’t be established, an estimate prepared with qualified quantity surveying expertise can help your accountant.
Capital works deductions
Capital works expenses you can claim as deductions can’t be included in the cost base. Your accountant applies this when working out your capital gain.
CGT changes start 1 July 2027
The ATO says that from 1 July 2027 the 50% CGT discount for resident individuals, trusts and partnerships is replaced with cost base indexation on gains that accrue on or after that date. It also lists a minimum 30% tax for individuals on certain net capital gains, and CGT on gains that accrue from that date for assets bought before 20 September 1985. Some exemptions apply.
The ATO says there is no change for assets bought and sold before 1 July 2027, and that you must keep meeting the existing record-keeping requirements. Records of what you spent on your property still matter. Talk to your tax adviser about how the changes apply to you.
Common questions
What is a CGT Cost Base Report?
It is a report prepared with qualified quantity surveying expertise that estimates the construction and improvement costs that form part of a property’s cost base for capital gains tax. It is most useful when the original invoices and receipts are missing.
How much does a CGT Cost Base Report cost?
Residential reports are $395 + GST. Where a site survey is required, an additional fee may be charged. Commercial reports are quoted individually, because every commercial property is different.
Do I need one if I have all my receipts?
Usually not. If you have invoices and receipts for the work, your accountant can generally work from those. A report is designed for situations where the records are missing or incomplete.
How is this different from a tax depreciation schedule?
A tax depreciation schedule estimates the deductions you may be able to claim while you own an investment property. A CGT Cost Base Report estimates construction and improvement costs for working out your capital gain when you sell. Some owners need both, and your accountant can advise.
Will the ATO accept the report?
We can’t speak for the ATO or guarantee how any estimate will be treated. Your accountant or tax adviser decides how to use the report when working out your cost base, and can tell you what the ATO requires in your situation.
Is a CGT Cost Base Report a property valuation?
No. It estimates the cost of construction or improvement works. It does not estimate what the property is worth.
Need a CGT Cost Base Report?
Order online in a few minutes, or call us and we will help you work out what you need.
Call 1300 780 892 · [email protected] · TaxShield Pty Ltd ABN 79 156 400 510
General information only, not tax advice. Always confirm your cost base and capital gain with a registered tax agent or accountant.