SMSF trustees must prepare the fund's financial statements with assets at market value each year, usually as at 30 June. For property, the ATO's Guide to valuing SMSF assets says the value must be based on objective and supportable data, and it doesn't always have to come from a qualified independent valuer. An indicative desktop assessment is $99 + GST ($108.90 incl. GST); an inspected report is $495 + GST ($544.50 incl. GST).
What does the law require?
Regulation 8.02B of the Superannuation Industry (Supervision) Regulations 1994 requires SMSF assets to be valued at market value when preparing the fund's accounts and statements. The fund's auditor checks that the values are supported by evidence.
Does it have to be a qualified valuer?
Not always. The ATO's guide says a valuation can be done by anyone, including a trustee, as long as it is based on objective and supportable data. The guide suggests an external, qualified valuer is worth considering when the property is a large share of the fund's value or the valuation is complex. Your auditor decides what evidence they accept.
Does the property need a new valuation every year?
The ATO's guide says an external valuation isn't needed for every asset every year, though one may be prudent if the value is likely to be materially inaccurate or a significant event has occurred, but the trustee must still be able to show the value used is market value. Many trustees get a fresh valuation every few years and supporting evidence in between.
Which report suits?
Residential property in an SMSF: an indicative Desktop Property Assessment $99 + GST ($108.90 incl. GST) at 30 June (or any date you need), or an inspected Tax, Transfer & Compliance Valuation $495 + GST ($544.50 incl. GST) where the property is a large part of the fund or the value is complex. Your auditor decides what evidence they accept. Commercial property held by the fund: Commercial Property Valuation from $1,980 + GST ($2,178.00 incl. GST), quoted first.
Questions
Do SMSF properties need to be valued every year?
SMSF assets must be reported at market value each year. The ATO's guide says an external valuation isn't needed every year, though it may be prudent after a significant event; the value used must be supported by objective evidence.
Can an SMSF trustee value the property themselves?
The ATO's guide allows valuations by anyone, including trustees, if based on objective and supportable data. The auditor decides whether the evidence is enough.
Sources
- ATO: Guide to valuing SMSF assets
- Superannuation Industry (Supervision) Regulations 1994, regulation 8.02B
This guide is general information, not tax, financial or legal advice. We value property; your accountant, auditor or lawyer decides how a value is used and what evidence they accept. The ATO does not approve or accredit valuers or valuations for CGT purposes.