How often does an SMSF need to value property?

To comply with relevant super law the market value of a property asset held in an SMSF is required to be reported by the trustee on an annual basis at 30 June each year.

There are some circumstances where property held by an SMSF must be re-valued on a more frequent basis:

  • When a pension is commenced, a valuation from within 12 months prior to the commencement of the pension must be used.
  • When the auditor believes that the valuation used in the accounts is either too high or too low.
  • Where the SMSF has in-house assets and the auditor needs to ensure that the 5% in-house asset ratio has not been exceeded.

ATO guidance recommends that a trustee should consider an external assessment after a significant event which may include macro-economic events, market volatility, or a natural disaster. 

Acumentis believes that COVID-19 could be considered a significant event and recommends that trustees take this into consideration when preparing this year’s financial reports.