Property investors are scrambling to lock in valuations a year ahead of schedule, as a looming tax shake-up is set to cost Australians $4.5bn.

As part of what the Albanese government has called a once-in-a-generation tax reform, every investment property will have to be valued.

Property valuation company Opteon says there has already been a 30 per cent spike in inquiries, as investors try to lock in a valuation ahead of the July 1, 2027 tax changes.

Opteon estimates about 2.5 million investment properties are potentially affected, based on

about 2.3 million residential properties and 250,000 commercial and agribusiness properties.

Opteon managing director Australia and New Zealand Scott Chapman told NewsWire investors should prepare themselves for the tax changes.

“The assessment itself can’t be done until after July 1, 2027, but we are getting a lot of inquires about people wanting to either book now so they can be first movers,” he said.

“We are also getting asked if they could do the inspection component now so they have it ready, and provided the condition of the property hasn’t changed in a year’s time, they can use that information for the valuation.

“It has been fascinating to watch consumers wanting to be well organised.”

Mr Chapman said while there were advantages to having a property valued as close to July 1, 2027 as possible, valuers could retrospectively value at property.

Huge cost of valuing revealed

Australians will be asked to pay a whopping $4.5bn in additional tax obligations, as a critical change from the government passes through parliament.

The CGT and negative gearing reforms were introduced to parliament on the last sitting day in May.

This means assets including shares, property and personal collectables all have to be valued as part of the tax rules.

In a submission to the government on the capital gains tax and negative gearing tranche 2 exposure drafts, Wilson Asset Management warns Australians will pay up to $4.5bn to be tax compliant.

This is based on about 2.3 million valuations for individual households, 996,203 for businesses and about 85,000 for farmers and their assets

If only a quarter of these property owners and a third of businesses use an individual valuation, it will cost those affected $1.3bn.

But this figure excludes other valuable items such as art, collectables, jewellery, antiques and other personal items impacted by the changes.

When these are also added in, Wilson Asset Management says valuations will cost about$4.5bn.

Wilson Asset Management chairman Geoff Wilson said it was unfair Australians were slapped with huge costs for valuations.

“Australians should not have to pay thousands of dollars for a valuation simply to ensure they are taxed on the gain they actually made,” he said in a social media post.

“Our modelling points to a one-off national valuation cost of up to $4.5bn, with the work required potentially reaching three to five times Australia’s available valuer capacity.”

Mr Wilson forecasts the flow-on impacts for Australian households, businesses and the broader economy will be well above the $4.5bn in initial costs.

“The valuation burden is only the immediate cost. With these changes applying to Australian businesses, the cost to the Australian economy will be tens of billions of dollars,” he said.

But this figure excludes other valuable items such as art, collectibles, jewellery, antiques and other personal items impacted by the changes.

How do the government changes work?

The Albanese government pushed through changes to capital gains taxes and negative gearing, announced in its May budget, calling it a once-in-a-generation overhaul to the system.

From July 1, 2027, the 50 per cent capital gains tax discount will be replaced with inflation-adjusted indexation.

Additionally, a new minimum 30 per cent tax rate will apply on capital gains from July 1, 2028, ending the incentive for asset-rich but cash-poor Aussies to sell assets when their income falls to maximise tax advantages.

Negative gearing has also been scrapped for those trying to get into the market on existing dwellings.

Current landlords and anyone who builds a new property can still use negative gearing.

What is the impact for property investors?

The property market has been hit by a trio of shocks including the budget changes, rising interest rates and surging oil prices, which combined are leading to price falls.

ANZ revised down its market expectations to forecast a peak-to-trough decline of 10.6 per cent in house prices across the nation’s combined capital city markets.

This is reflected in a 4.3 per cent decline nationally in 2026 followed by a further 3.4 per cent drop in 2027.

In Sydney, ANZ expects a 14.5 per cent peak-to-trough fall.

ANZ economists Madeline Dunk and Adam Boyton said it was clear recent tax policy changes and global uncertainty had dampened sentiment in the market, but that would likely be short term.

“Given the broader supply backdrop, and the capacity constraints in the construction sector, we think it is hard to see housing prices falling for an extended period,” they said in a statement.

“Through the second half of 2027 we expect dwelling prices to start recovering, supported by 50 basis points of rate cuts from the RBA.”