Acumentis Property Valuers, specialising in audit-compliant property valuations for SMSFs, is committed to providing accurate market value assessments and substantiated data for assets held within self-managed superannuation funds (SMSFs), in line with the ATO's Market Value SMSF Auditors Valuation requirements.
The ATO has recently voiced concerns regarding SMSF asset valuations that have remained stagnant over multiple income years. Emphasising the necessity for annual asset valuation, the ATO has announced its scrutiny of 16,500 funds that have reported unaltered values for specific asset classes over a minimum of three years.
According to a recent update on its website, the ATO is employing data analysis techniques to identify risks, particularly focusing on funds that have consistently reported asset values without adjustments over multiple income years.
“We are concerned these funds may not be meeting their legal requirement to value and report their assets at ‘market value’ every year,” the ATO stated.
Of specific concern, the higher-risk category comprises approximately 16,500 funds, encompassing residential and commercial properties, unlisted companies, and unlisted trust investments.
The ATO notes no Auditor Contravention Reports (ACRs) were filed for potential breaches of market valuation rules. They will monitor funds' approaches in their next annual return and scrutinise auditors' actions.
This signals the ATO's readiness to initiate compliance actions ahead of the proposed tax on superannuation balances exceeding $3 million.
ATO's primary concern is compliance with the legal obligation to assess and report assets at market value annually.
Every year SMSF trustees need to value SMSF-held property assets at market value and provide supporting evidence to their auditor.
Trustees must provide objective and substantiated evidence to support asset valuations. Failure to meet ATO requirements may lead to additional tax liabilities and administrative penalties for the SMSF and its members.
At Acumentis Property Valuers, we remain committed to assisting SMSF trustees and auditors in meeting their valuation obligations and ensuring compliance with regulatory standards.
Order an ATO-compliant, cost-effective, efficient SMSF desktop assessment today to take the stress out of annual market value reporting and mitigate any auditor reworks.