SMSF Valuations: Ensuring Compliance & Streamlining Process

Self-Managed Super Funds (SMSFs) are a vital part of Australia’s superannuation system, offering individuals control over their retirement savings.

A key aspect of managing an SMSF is obtaining accurate property valuations. This is not merely a formality but a critical requirement for all parties involved - the SMSF entity, the accountant, the SMSF auditor, and to meet the Australian Taxation Office (ATO) requirements.

The Necessity of SMSF Valuations

  1. SMSF Entity: Every SMSF must undergo an annual audit to verify the accuracy of its financial statements and ensure compliance with the Superannuation Industry (Supervision) Act 1993 (SIS Act) and regulations (SISR).
  2. ATO Guidelines: The ATO provides clear guidelines on property valuation for SMSFs, ensuring consistency and transparency. Regular valuations are crucial for SMSF compliance. Certified reports at regular intervals confirm market values and demonstrate adherence to ATO standards. Trustees must select a valuation method aligned with ATO guidelines.

The Acumentis Advantage

Acumentis, a trusted name in property valuation, offers tailored solutions for SMSFs. Our team of qualified, independent valuers ensures accurate assessments. Here’s why Acumentis stands out:

  • Comprehensive Reports: Acumentis provides detailed, written reports outlining the valuation methodology and supporting data. Importantly our reports include both Market and Rental Assessments. These reports satisfy auditors and ATO requirements.
  • Market Insights: Acumentis considers recent rental evidence, sales of comparable properties, area market analysis, and property attributes during the assessment process. We have an extensive database covering residential, commercial, and rural agribusiness properties offering comparable data for specialised assets.
  • Confidence: We are aware that self-reporting occurs for residential assets using third party property platforms. However, it is important to obtain professional advice if the property is unique (in location and characteristics) or there is low confidence in the value provided. Turn to Acumentis for confidence and to mitigate any audit queries.
  • Smooth Process: Engaging Acumentis streamlines the process eliminating rework or unnecessary delays.
  • Affordability: Acumentis’ services are cost-effective, making professional valuations accessible to SMSF trustees.

Market Dynamics and Material Changes

If you were to rely on a previous valuation report, you need to justify why it remains “current.” This applies to both the rental and market values. Our property market is dynamic, and this has been demonstrated in more recent years influenced by factors such as the pandemic, inflation, interest rate rises, weather events and construction cost escalations. These significant events can materially impact an asset’s value. Regular annual updates from Acumentis ensures accurate reporting and “compliance” peace of mind.

Acumentis, with its deep understanding of the property market and SMSF requirements, has developed a product that is compliant with auditing and ATO requirements and can be completed efficiently and affordably. Trust Acumentis for your SMSF valuation needs and experience the difference that our expertise can make.

Nathan King
National Director – Advisory, State Director – WA Operations
— Perth Property Valuers
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