FAQ’s - Valuing Self-Managed Super Fund property assets

Gareth Turner, Senior Valuer — Brisbane

We’ve pulled together a list of the questions we get asked the most about valuing Self-Managed Super Fund property assets.

If you hold property in your SMSF or are an SMSF manager these questions may help as you prepare your annual reporting for ATO compliance.

Why use a qualified property valuer to value SMSF property assets?

When it comes to valuing 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 Australian Taxation Office 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 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.
Who can provide valuations for SMSF property assets?

The ATO requires a valuation undertaken by a;

  • registered valuer
  • professional 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
How often does an SMSF need to value property assets?

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 need to ensure that the 5% in-house asset ratio has not been exceed.

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. 

Can Acumentis provide SMSF valuations for multiple properties across Australia?

If you have multiple properties across Australia within an SMSF, the Acumentis team can certainly assist. With over 300 qualified independent property valuers across 45 offices throughout metropolitan, regional, and rural Australia we have someone near ready to help.

The Acumentis team specialise in residential, commercial, rural, and agribusiness property types and can value any type of property asset held within an SMSF.

How much does an SMSF valuation cost?

Our pricing guide can be found in the table below:

Asset Value Assessment Cost Tenancy
Up to $1 Million *$250 (+ GST) Single residential property
Over $1 Million Request a quote
Up to $2 Million *$500 (+ GST) Up to two tenants
$2 – $3 Million *$750 (+ GST) Up to two tenants
> $3 Million, complex or retrospective Request a quote
Up to $2 Million *$500 (+ GST) Rural lifestyle, grazing, dryland farming
$2 – $5 Million *$750 (+ GST) Rural lifestyle, grazing, dryland farming
> $5 Million, any value or specialised Request a quote

*Prices starting from.
Terms & Conditions Apply.

Can Acumentis provide retrospective/back dated SMSF property valuations?

Acumentis has the access to relevant sales information and market data allowing the provision of the market value of a property for the previous financial year, or earlier financial years where required for reporting purposes.

Is a physical property inspection required for SMSF valuations?

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 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.

Why should I choose Acumentis for SMSF valuations?

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 

Our clients find that the benefits of an Acumentis SMSF Restricted Property Assessments are

  • ATO compliant, including reliable and substantiated data
  • Efficient turnaround times, 2 - 4 working days from receiving compliant documentation
  • Cost effective
  • Available nationwide
  • Available for all property types – residential, commercial, rural and agribusiness

To discuss how we can assist you with the reporting requirements for your SMSF property assets request a quote or contact me today.

Aaron Hughes
Regional Director
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