If your self-managed super fund owns property, the fund reports what it is worth every year, and the auditor checks how that figure was reached. Here is what the ATO’s guide says, when it suggests an independent valuation, and which of our reports suits.
Why an SMSF reports property at market value
Self-managed super funds must value their assets at market value in their annual accounts and statements (regulation 8.02B of the Superannuation Industry (Supervision) Regulations 1994), and the fund auditor checks the evidence. If an earlier valuation has become materially inaccurate, the ATO’s guidelines say trustees should get a new valuation or other evidence.
Does the fund have to use an independent valuer?
Not for every property. For the fund’s accounts, the ATO’s guide says you are not required to get a valuation from a “qualified independent valuer”. It recommends considering one where:
- a property is a large share of the fund, or
- valuing it is likely to be complex.
The guide treats a valuation from a property valuation service provider as one kind of evidence. If it is the only evidence, it should set out the comparable sales it relied on, and unless the fund bought the property recently the ATO says to consider a variety of sources. Your auditor decides what evidence they ask for, so check with them first.
Buying property from a related party
A fund generally cannot buy an asset from a related party of the fund. One exception is business real property, which a fund with no more than six members may buy at market value (section 66 of the Superannuation Industry (Supervision) Act 1993). An independent valuation at the date of the purchase may be useful as evidence of that value.
Business premises and other commercial property are valued on their leases and income, so we quote them before anything is booked.
Which report suits fund property?
| Report | Fee incl. GST | Suits |
|---|---|---|
| Desktop CGT Valuation | $149 | A standard house, unit, townhouse or vacant lot, where the auditor is comfortable without an inspection |
| Inspected CGT Valuation | $495 | Unusual or higher-value property, or where the trustees or the auditor want an inspection |
| Commercial, rural or development property, or anything likely to be worth more than $3 million | Quoted | Business premises and other property outside the two fixed-fee reports |
Both fixed-fee reports set out the comparable sales the value rests on and the method, and are reviewed and signed by a property valuer. 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, it is at the date the fund acquired the property. Either can be a past date: the valuer values the property as it was on that day, using sales of comparable properties from around then, and changes made since are left out. See valuing at a past date.
If the fund wants values at two dates, the second date goes in the same report for $149.
What to send
Records of the property help the valuer, especially for a past date:
- the address, the type of property and the fund’s name
- the lease and the rent, if the property is rented
- plans, approvals and invoices for renovations or extensions, with dates
- recent photos, or photos from around the valuation date
- for apartments and townhouses, strata records of any major works
If something cannot be found, the report states what the valuer has assumed.
How to request
- Request online and choose “Something else” as the reason. In the notes, say whether the valuation is for the fund’s accounts or a purchase, and give the fund’s name as it should appear on the report.
- Choose today’s date or a past date, such as the 30 June the accounts are made up to.
- We confirm the valuer, fee and timing in writing. Nothing is booked or charged until you accept.
- You receive a signed PDF report by email.
We value property. We do not give tax, super or audit advice. Your accountant and auditor decide what evidence the fund keeps.