Does the ATO accept a RE appraisal as market valuation in working out CGT? I also have a figure from the bank valuation at the time but not sure if the bank will release that report too me.
You'll have more chance of the ATO accepting a valuation from a registered valuer than from a real estate agent. However, ultimately it is the process taken to arrive at the value (rather than the person who did the valuation) that determines whether the ATO will accept it. So a well supported valuation from a real estate agent may be accepted (if the ATO ever comes knocking). I've seen the ATO contest valuations even where there was a report from a licenced valuer. Generally this is for high value transactions. The ATO will engage their own valuer and then it is up to the Court to decide which valuation is more reasonable.
ATO have their own panel of valuers, much like banks so find out which valuers are on there panel and engage one of them. More info here: Request Rejected
According to your link they did 93 CGT valuations at an average cost of $32k per valuation. I doubt any were standard residential ones.
I would think a list of 3-5 comparable sales, address, date sold, bed/bath, land size and comment on similarity to your property included in the real estate appraisal letter on letterhead should carry good weight, although I have no experience with it being tested by the ato. I think that would be a reasonable way of assessing market value to a reasonable person.
According to Market valuation for tax purposes | Australian Taxation Office "A person without formal valuation qualifications whose assessment is based on reasonably objective and supportable data" is allowable. I'd get 3 x market appraisals or CMAs from local REAs.