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How Xian Saved Over $20,000 In Tax Using Guardian
Xian purchased her 2-bedroom Hurstville unit in 2015 for $550,000. She lived in the property as her principal place of residence for the first three years before renovating and renting it out in 2018. When she sold the property in 2025 for $700,000, she faced a potential capital gains tax liability.
Without a formal CGT valuation from 2018, the ATO would have assessed her capital gain using the original 2015 purchase price of $550,000 — even though the property had significantly increased in value by the time it became an investment. This would have unnecessarily inflated her capital gain and increased her tax payable.
Fortunately, on the advice of her accountant, Xian engaged Guardian Property Valuers. With a professional CGT valuation in place, she saved over $20,000 on her end-of-year tax bill.
Tax Savings Breakdown
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Cost Base
Sale Price
Capital Gain
CGT Discount (50%)
Marginal Tax Bracket
Tax Payable on Capital Gain
Guardian Helped Xian Save
ATO
Cost Base
Sale Price
Capital Gain
CGT Discount (50%)
Marginal Tax Bracket
Tax Payable on Capital Gain
By engaging Guardian Property Valuers, Xian was able to save over $20,000 in Capital Gains Tax. Without a CGT valuation from our team, the ATO would have assessed her cost base at the original 2015 purchase price of $550,000 — resulting in a significantly inflated tax bill at her next financial year assessment.
Our expert valuers are well-versed in the relevant federal tax legislation, particularly Section 118-192 of the Income Tax Assessment Act 1997 (Cth), which enables the use of the market value substitution rule. This provision allows property owners to reset their cost base to the market value at the time their home is first used to produce income.
We stay up to date with legislative changes and are trusted by leading accountants and tax professionals across New South Wales, Victoria, and the ACT. At Guardian, we provide accurate, compliant property valuations at fair market value to support your tax outcomes.
See What You Could Be Saving With Our CGT Calculator
Just like Xian, you can benefit from our accurate and affordable CGT-compliant property valuations.
Try our in-house CGT Calculator to estimate your potential tax savings compared to the ATO’s default cost base assessment.
Capital Gains Tax Calculator
