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ATO Guide to Market Value

What 'market value' means

You should assess market value on the basis of the highest and best use of the asset as recognised in the market.

Valuers of real property adopt the definition used by the International Valuation Standards Council (IVSC):

the estimated amount for which an asset should exchange on the date of valuation between a willing buyer and a willing seller in an arm's length transaction, after proper marketing, wherein the parties had each acted knowledgeably, prudently and without compulsion.

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Minimum Requirement of the Valuation reports

This part provides guidance on the content we require in a market valuation report.
Minimum requirements

A valuation should:

be replicable - in effect, this means the valuation should be documented and explained well enough that another person or valuer can understand how the value was determined, and

preferably be undertaken by a suitably qualified and experienced person in relation to the asset being valued.

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A valuation report should:

be understandable, and

objectively demonstrate the valuation process undertaken in accordance with valuation industry practices.