Annual property valuations for SMSFs

Do you have a Self Managed Super Fund (SMSF)? Did you know that as part of the ATO compliance requirements for SMSFs, Trustee/s are required to value all fund assets at market value when preparing their fund’s financial accounts and statements.

While the valuations are required to confirm the value of fund assets on 30 June, we’re sending this early reminder so that you can plan ahead.

When valuing residential and commercial real property, you may wish to consider using a qualified independent valuer, especially where the value of the property represents a significant proportion of the fund’s value. The valuation should stipulate the supportable data if it is the sole source of evidence being relied upon to substantiate the valuation. For example, in the case of a real estate agent appraisal or online report, the valuation should list the comparable sales it relied on.

It is important for the Trustee/s to consider whether a previous valuation which has been provided by a qualified independent valuer can be used to support the valuation of the asset each year. In practice an annual valuation for residential real estate and a valuation at least every 3 years for commercial real estate is recommended.

This advice has been  brought to you by the team at ABA Advice. The ABA Team are experts in SMSF compliance. If you have any queries in relation to your responsibilities as a Trustee for your Self Managed Superannuation Fund, then give them call and they can answer any questions to ensure that your SMSF remains compliant.

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