Independent market valuations of fine art for taxation and capital gains tax purposes
Capital gains tax calculations can depend on the value of an artwork at a particular date, not simply what the owner paid for it or what a similar work once achieved at auction. When market value is required, the assessment should be objective, supportable and matched to the relevant valuation date.
Banziger Hulme provides carefully researched fine art valuations for private owners, accountants, tax advisers, solicitors, executors, trustees and companies throughout Australia. We establish the valuation scope with you and your professional adviser, assess the available evidence and provide a written report that records the basis of value, research, assumptions and limitations.
From 1 July 2027, new CGT rules are scheduled to apply to eligible assets held by Australian resident individuals and trusts.
For assets held at 30 June 2027, the law generally treats them as though they were sold immediately before 1 July 2027 and reacquired immediately afterwards. Unless an approved apportioning method is used, both the deemed sale proceeds and the new cost base are based on the asset’s market value immediately before 1 July 2027.
Any notional capital gain or loss created by this deemed sale is generally deferred until the asset is actually disposed of in the future. The legislation also allows the market value to be determined at that later time, meaning a valuation is not legally required before 1 July 2027. However, obtaining a valuation at or around 30 June 2027, when the market value is assessed under the transitional rules, creates a contemporaneous record of the asset’s market value. This is generally much easier to support than attempting to reconstruct the value years later, when market conditions, comparable sales and other evidence may no longer be available.
The rules do not affect every artwork in the same way. Ownership structure, acquisition date, use, cost, exemptions and later events can all matter. Confirm the tax position and required valuation date with your accountant or tax adviser before commissioning the report.
For tax purposes, market value is generally approached as the price that knowledgeable, willing but not anxious parties would agree in an arm’s length transaction in the appropriate market at the specified date. The assessment is specific to the artwork and the valuation purpose.
A deceased estate valuation is more than a rough opinion. It is a structured, professional assessment of relevant artworks or collectables based on research, market knowledge and the circumstances of the matter.
Depending on the collection and brief, the service may include:
In deceased estates, independence matters.
Families are often dealing with grief, time pressures and differing views about what items should be worth. Some artworks may appear modest but hold substantial market value. Others may carry emotional importance without equivalent commercial value.
An independent, properly researched valuation helps by:
This is exactly why independent valuation is so important in probate, inheritance and family division matters.
Artist, attribution, title, date, medium and dimensions.
Condition information available within the agreed scope.
Provenance, labels, inscriptions, exhibition history and ownership records where available.
Previous sales and comparable market evidence.
The relevant market and market conditions at the valuation date.
The purpose, basis and date of valuation.
Material assumptions, limitations and information gaps.
Confirm the purpose. Tell us why the valuation is required, who will rely on it and the relevant valuation date. Your accountant, tax adviser or solicitor should confirm the tax instruction where appropriate
Define the scope. We confirm the artworks, locations, ownership information, available records and whether a remote review or on-site inspection is suitable.
Provide photographs and records. Clear images, dimensions, labels, signatures, invoices, prior valuations and provenance information help us identify each work and assess the evidence.
Research and assess market evidence. We consider the characteristics of each artwork, relevant comparable sales and the market conditions applying at the valuation date.
Receive the written report. The report records the agreed purpose and basis, identifies the works, explains the evidence and methodology used, and states relevant assumptions or limitations.
A remote or desktop valuation may be appropriate when clear photographs, dimensions, labels and supporting records are available and physical examination is not required. This can be useful for interstate and regional clients or for manageable groups of well-documented artworks.
An on-site inspection may be recommended for high-value or complex works, significant condition concerns, incomplete photography, questions about medium or construction, or larger collections. A physical inspection does not by itself authenticate an artwork, and a remote review cannot reveal every subtle condition issue.
5.0
(25 Google Reviews)
Banziger Hulme has provided independent fine art valuations since 2003.
Our work is grounded in specialist fine art knowledge, current and historical market evidence, careful research and clear written reporting. We value Australian and international art for private clients, professional advisers, companies, government bodies and institutions throughout Australia
Director
Director
David Hulme is a registered valuer member of the Art Consulting Association of Australia and has been an approved valuer for the Australian Government’s Cultural Gifts Program since 2007. This approved-valuer status is a professional credential and does not mean every Banziger Hulme valuation is prepared under that program or endorsed by government.
Not automatically. The legislation uses market value immediately before 1 July 2027 as a reference point for certain assets, but it can allow the amount to be worked out later when a realisation event occurs. A contemporaneous valuation may still be prudent because evidence can become harder to locate and condition can change. Ask your tax adviser what is appropriate for your circumstances.
Usually not without confirming that it uses the correct basis and valuation date. Insurance replacement value and market value answer different questions and can produce materially different figures.
No. An auction estimate may inform the analysis, but it relates to a particular sale context and is only one piece of evidence. A market valuation considers the artwork, relevant market, valuation date and comparable evidence as a whole.
No. The tax treatment depends on whether the artwork is a collectable as defined, its acquisition circumstances and other facts. The $10,000 personal-use asset threshold applies to personal-use assets other than collectables. Your tax adviser should confirm the classification.
No. We provide the fine art valuation and supporting report. Your accountant or tax adviser applies the tax law, determines the cost base and calculates any liability.
In many cases, yes. We first review the artwork, purpose and evidence to decide whether a remote valuation is suitable. An on-site inspection may be recommended where physical examination is important.
Contact Banziger Hulme with photographs, available records and the valuation date or instruction provided by your accountant, tax adviser or solicitor. We will advise on the appropriate scope and whether a remote or on-site valuation is suitable.
Contact our art specialists now with your enquiry. We aim to reply within 48hrs.
