SMSF Valuation Experts

SMSF managers must prepare annual financial accounts and statements including a valuation of any property assets to confirm a fund has complied with ATO regulations and relevant super law. 

When it comes to valuing real property assets, the two most important considerations for trustees are the valuation approach adopted and the timing of the assessment. Having objective and supportable data demonstrating market value and the valuation methodology used will enable compliant reporting.

The ATO recommends funds consider the use of a qualified independent valuer if either the:

• value of the asset represents a significant proportion of the fund’s value
• nature of the asset indicates that the valuation process is likely to be complex or difficult
• occurrence of a significant event which may include macro-economic events, market volatility or a natural disaster has occurred. COVID-19 is being considered a significant event and trustees are recommended to take this into consideration when preparing their financial reports.

A common challenge encountered when providing reporting for a property asset held in an SMSF is gaining access to current and relevant data to demonstrate market value comparison. The cost and timing associated with obtaining third-party advice in relation to this task is often the biggest hurdle.  At Acumentis our market-leading valuation management software contains millions of records. Our valuation team has immediate access to the most up-to-date sales information and market data allowing the efficient provision of a valuation report or property assessment.

Asset valuations are a crucial part of preparing annual Self-Managed Super Fund (SMSF) financial reports. The ATO mandates that assets must be valued at market value, and trustees must provide objective evidence to support the valuation. Annual reporting is required, which suggests market value is required every year.

Substantial events, such as physical changes to the asset or significant market value shifts, may also necessitate updated valuations. Our property market is dynamic, most recently influenced by, inflation, interest rate rises, weather events, and rising construction costs. Staying updated with market changes and adjusting property asset valuations accordingly is essential.

Acumentis provides the detailed market data and methodology required to comply with ATO reporting and super law requirements. Our national team of registered valuers brings a wealth of expertise, local and asset-specific knowledge, and insights to the process, that may be missed if using other third-party providers 

Acumentis delivers SMSF assessments in a timely and cost-effective manner. Assessments are delivered within two business days from receipt of a compliant engagement form, that is easily completed online. 

The ATO requires a valuation undertaken by a;

• registered valuer
• professional property valuation service provider
• member of a recognised professional valuation body
• person without formal valuation qualifications but who has specific experience or knowledge in a particular area

For SMSF reporting Acumentis created an innovative product during the early stages of the COVID-19 pandemic in 2020, the SMSF Restricted Property Assessment.

To complete the SMSF Restricted Property Assessment a qualified Acumentis valuer conducts a contactless remote desktop assessment that does not require physical access to the property. Thorough analysis using real-time sales and market data ensures SMSF trustees are provided an accurate and timely ATO compliant report.

Yes, there is a connection, but council rate valuations don’t typically use accepted methodologies to meet the ATO market value definition for SMSF reporting requirements. Council rates valuations usually form part of a general valuation process, applying a mass appraisal approach. These rates notice alone won’t clearly provide supporting data, so they would not meet the ATO guidelines. It’s recommended to seek professional advice when dealing with property valuations and related taxes.

Typically, an appraisal or letter from a real estate agent indicating the market value of a property may not meet ATO guidelines for SMSFs. A compliant report should detail the valuation methodology, include supporting data like comparable property prices, and specify the adopted figures for both the market and rental valuations. Ensure the provider is familiar with ATO guidelines and can produce a compliant report.

This is a common topic with SMSF clients. The implications are speculative until the legislation is enacted. However, a March 2024 ATO article suggests increased scrutiny on funds not updating asset values annually, which may intensify with the new legislation.

This question involves general valuation principles. For unique assets, we expand the search to other areas and apply suitable locational adjustments. This also applies to specialised commercial assets, using rates and yields from various regions to provide insights for adjustment. Choosing the appropriate valuation method based on the asset and evidence is crucial. If Direct Comparison is limited, methods like Capitalisation or Summation Approaches can be used to establish market value.

A professional valuer can provide retrospective valuations for an asset on multiple past dates, including those beyond three years ago. If you have specific requirements, it’s advisable to contact your valuer, as they can typically accommodate a wide range of needs.