New CGT rules could force Australians – and their accountants – to value everyday collectibles

• Tax changes will create a surge in demand for tax advice, record-keeping, and valuation support
• Full extent of what constitutes a “collectible” remains unclear
• Inherited assets may even be caught

CPA Australia is warning that proposed changes to capital gains tax (CGT) could impose unexpected and costly valuation obligations on millions of Australians – and create a significant compliance burden for the accounting profession.

Under the proposed reforms, all CGT assets held on 30 June 2027 will require a market value to be established as a starting point for the new tax rules. While framed as targeting high-income investors, CPA Australia says the changes will reach deep into ordinary households – and drive a surge in demand for professional advice.

CPA Australia Tax Lead Jenny Wong said both taxpayers and their advisers are facing a wave of complexity that has not been properly accounted for.

“Most Australians think this reform is about investment properties and share portfolios – but it actually goes much further than that,” Ms Wong said.

“The valuation obligation applies to every CGT asset held on 30 June 2027, including everyday collectibles sitting in people’s homes – and accountants will be on the front-line helping clients make sense of it.”
 
Under existing tax law, collectibles purchased for more than $500 – including artwork, jewellery, rare coins, first-edition books and vintage cards – are treated as CGT assets. Personal use assets above $10,000 are also captured.

The reforms introduce a new requirement: all such assets will need a defensible market valuation on 30 June 2027.

“A Pokémon card bought for $600, a vintage watch, a coin collection, or a piece of jewellery purchased years ago – all of these are potentially captured,” Ms Wong said.

“These are real assets sitting in Australian households right now, and most people will have no idea they may need to get formal valuations.”

Ms Wong said the extent and breadth of what constitutes a “collectible” remains unclear: “Is a Pokémon card collected as a hobby considered a CGT asset? What about a designer handbag or a watch that has increased in value?” Ms Wong said.

“There is significant uncertainty, and taxpayers will turn to their accountants for answers that the law does not yet clearly provide.”

CPA Australia warns that even inherited assets may be caught.

“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 says the reforms will create a substantial surge in demand for tax advice, record-keeping, and valuation support, placing pressure on an already stretched profession.

“Accountants and tax agents will be expected to guide clients through what assets are captured, what records are needed, and how to obtain defensible valuations,” Ms Wong said.

The influx of client inquiries could be significant as the 2027 deadline approaches.

“We are likely to see a wave of Australians contacting their accountants asking: ‘Do I need to value this? What is it worth? How do I prove it?’,” Ms Wong said.

“Without clear rules and guidance, this will create bottlenecks, delays and increased compliance costs across the system, adding layers of complexity, judgement and potential risk.”

CPA Australia warns that accountants may also face increased professional risk if valuations are challenged by the ATO.

“Tax practitioners will be placed in a difficult position, balancing client expectations, unclear definitions, and the need for defensible valuations. That is a significant additional burden on the profession,” Ms Wong said.

Formal valuations can cost hundreds of dollars per item, meaning households with collections of jewellery, artwork, watches or coins could face thousands of dollars in upfront costs.

CPA Australia estimates the total one-off transitional valuation burden at between $675 million and $825 million, a figure that was not disclosed by Treasury.

“This is a substantial, economy-wide compliance exercise, and much of it will be facilitated through accountants,” Ms Wong said.

CPA Australia has also identified concerns with the proposed split-gain mechanism, which could result in taxpayers being taxed on more than their actual economic gain.

"For a personal use asset, any capital loss on disposal is entirely disregarded under existing tax law. But this Bill splits a single asset's history into two separate tax events — one before 1 July 2027, one after. If the asset's value falls before that date and recovers afterwards, the loss on the first event is ignored while the gain on the second remains fully taxable. That creates a real risk that taxpayers end up paying tax on more than they actually made," Ms Wong said
CPA Australia is calling on the Government to clarify the scope of the reforms and better consider their practical impact.

“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. Without clearer guidance and simplification, the compliance burden on both taxpayers and the profession risks being significant and unfair.”

 

Media contact

Adrienne Biscontin
External Affairs Lead
[email protected]
0429 009 691