Property valuations for SMSF trustees and auditors

This page is for trustees of self-managed super funds, and for the auditors and accountants who work with them. It covers the annual market value, when the ATO suggests an independent valuer, purchases and transfers from related parties, and which of our reports suits. For a plain-English overview, see SMSF property valuations explained.

Annual values for the fund’s accounts

Each year the trustees must make sure the fund’s accounts and statements are prepared (section 35B of the Superannuation Industry (Supervision) Act 1993), and regulation 8.02B of the Superannuation Industry (Supervision) Regulations 1994 says assets must be valued at market value in them. The Act defines market value as the amount a willing buyer could reasonably be expected to pay a willing seller, assuming they deal at arm’s length, the asset is properly marketed, and both act knowledgeably and prudentially (section 10).

The ATO’s guide to valuing SMSF assets asks trustees to keep evidence of how each value was worked out and to give it to the auditor at the annual audit. It says a valuation is generally fair and reasonable when it:

• is based on objective and supportable data
• considers all relevant factors likely to affect the value
• has been done in good faith
• uses a rational and logical process, and
• is capable of explanation to a third party.

For real property, the guide lists factors such as comparable sales, a recent arm’s length purchase price, an appraisal from an independent real estate agent, and improvements since the last valuation. Unless the fund bought the property recently, it says to consider a variety of sources, because a value based on only one item of evidence is generally not enough. If a valuation from a property valuation service provider is the only evidence, it should set out the supportable data, such as the comparable sales it relied on.

When the ATO suggests an independent valuer

For the accounts, the ATO’s guide says trustees are not required to get a valuation by a “qualified independent valuer”. It says they should consider one where:

• a fund asset is a significant proportion of the fund’s value, or
• the nature of the asset means the valuation is likely to be complex or difficult.

The guide also says that when a significant event affects an asset’s value, trustees preparing the accounts should get a new valuation, use one obtained after the event, or get other evidence of the value. Its examples of significant events include a natural disaster, market volatility and changes to the character of the asset.

In the ATO’s terms, an independent valuer is not a member of the fund or a related party of it, such as a relative, and is impartial, unbiased and not influenced, or seen to be influenced, by others. If we cannot take on a valuation, for example because of a conflict of interest, we tell you.

The guide says a fund that has an independent valuation does not have to get a new one each year, but the trustees must still consider whether the earlier one supports the value, and should document how they decided. If it has become materially inaccurate, or the value has changed significantly, they should get a new valuation or use other evidence.

What the auditor does

The ATO says valuing the fund’s assets is the trustees’ responsibility, and that the auditor’s role is not to value them or determine their market value. The fund’s approved SMSF auditor, appointed each year (section 35C), checks the valuation as part of the annual audit, using professional judgment to check that assets have been valued correctly and that the basis of the valuation suits the type of asset.

The auditor can ask for the documents that show how a value was reached, and the Act requires trustees to give an auditor any document relevant to the audit report that it requests in writing within 14 days (section 35C). The ATO’s guide adds that an approved SMSF auditor can seek an independent valuation of the fund’s investments as part of the audit.

Our report sets out the valuation date, the comparable sales relied on and how each was adjusted, the method and assumptions, and the name of the property valuer who reviewed and signed it. It gives a market value. It does not give an opinion on the fund’s compliance, and the auditor decides what evidence they ask for.

Purchases and transfers from related parties

A fund generally must not acquire an asset from a related party of the fund (section 66). Related parties include the fund’s members, their relatives and companies or trusts they control. One exception is business real property, broadly land and buildings used wholly and exclusively in a business, which a fund with no more than six members may acquire from a related party at market value.

The rule covers transfers as well as purchases. The ATO calls a contribution made with an asset rather than money an in-specie contribution, and says trustees generally must not acquire assets, including in-specie, from related parties, with exceptions such as business real property. An independent valuation at the date of the purchase or transfer may be useful as evidence of market value.

For the member or other related party who transfers the property, capital gains tax generally uses market value too, where nothing is received for it, or where the price differs from market value and the parties are not dealing at arm’s length (section 116-30 of the Income Tax Assessment Act 1997). Their accountant decides how that applies, and stamp duty is a separate question for the state or territory revenue office: see family and company transfers.

Business premises and other commercial property are quoted before anything is booked.

Which report suits fund property?

Both fixed-fee reports list the comparable sales the value rests on and set out the method, and both are reviewed and signed by a property valuer. Which suits a given year is the trustees’ decision, and the auditor decides what evidence they ask for. The Australian Property Institute, a professional body for valuers, describes a desktop report as an indicative value only, not a valuation report: see desktop or inspected. Fees are also on the pricing page.

Which date the value is at

For the annual accounts, the value is at the 30 June the accounts are made up to. For a purchase or transfer from a related party, it is at the date the fund acquires the property. Either can be a past date: the valuer values the property as it was on that day, using sales from around then. See valuing at a past date.

If the fund wants values at two dates, for example 30 June in two different years, the second date goes in the same report for $149.

Fund property and 30 June 2027

The fund’s accounts for the year to 30 June 2027 will value its property at market value, as in any other year. A valuation at 30 June 2027 relies on sales evidence up to that day, so it is prepared after it. You can put fund property on our free 30 June 2027 register now. Registering is not a booking: after 30 June 2027 we get in touch to say whether we can take it on and, if we can, to confirm the valuer, fee and timing.

Whether the capital gains tax changes that start on 1 July 2027 affect a super fund’s property is a question for the fund’s accountant.

How to request

1. Request online and choose “Something else” as the reason. Under “Your connection to the property”, trustees choose “I own the property”, and auditors and accountants choose “I am an accountant or adviser”.
2. Choose today’s date or a past date, such as the 30 June the accounts are made up to.
3. In the notes, say whether the value is for the fund’s accounts or a purchase or transfer, give the fund’s name as it should appear on the report, and tell us if the auditor or the fund’s accountant will rely on it.
4. We confirm the valuer, fee and timing in writing. Nothing is booked or charged until you accept.
5. You receive a signed PDF report by email.