SMSF valuation answers
Short, direct answers to the questions SMSF trustees, accountants, administrators and auditors ask about valuing fund assets, checked against ATO guidance.
Trustees
- Does my SMSF need an independent valuation?Usually no. The ATO says trustees are not required to use a qualified independent valuer for the fund's accounts and statements. The law requires one only for collectables and personal use assets disposed of to a related party. The ATO recommends one when an asset is a significant share of the fund or complex to value.
- How often do SMSF assets need to be valued?Every year. SMSF trustees must value fund assets at market value for the accounts and statements, as at 30 June. The ATO has named valuing only every three years as an outdated practice. Some events need a value on another date, such as the start day of a retirement income stream and 1 July for minimum pension payments.
- Who can value SMSF assets?Trustees are responsible for valuing SMSF assets. Depending on the situation, the ATO says the valuer can be a registered valuer, a professional valuation service provider, a member of a recognised valuation body, or a person with specific experience or knowledge. A qualified independent valuer is required only for collectables and personal use assets disposed of to a related party.
- What is a qualified independent valuer for an SMSF?In the ATO's guidance, a qualified independent valuer has formal qualifications or recognised knowledge and experience in their professional community, and is independent because they are neither a member nor a related party of the fund. They must be impartial and unbiased. The law requires one only for collectables and personal use assets disposed of to a related party.
- What is market value for an SMSF?Market value for an SMSF is the amount a willing buyer could reasonably be expected to pay a willing seller, assuming they deal at arm's length, after proper marketing of the asset, and both act knowledgeably and prudentially. That is the definition in super law, which the ATO uses in its guide to valuing SMSF assets.
- How do you value units in an SMSF unit trust?Value the trust's assets and liabilities at market value, then work out what the fund's units are worth under the trust deed. The ATO says to consider the trust's assets and the consideration paid. Evidence includes an independent asset valuation, a property valuation where property is the only asset, or the latest arm's length sale of a unit.
- How are unlisted shares in an SMSF valued?Unlisted shares are valued by considering the company's assets and the consideration paid, because there is no quoted price, the ATO says. Evidence includes an independent valuation of those assets or the latest arm's length sale of a share. Otherwise the directors set out their method and assumptions. Consider a qualified independent valuer if the holding is complex or significant.
- Are audited accounts enough to value an SMSF unit trust?Usually not. The ATO says signed audited statements showing a unit trust's assets at cost are unlikely to be sufficient on their own. Trustees should consider the value of the trust's assets and the consideration paid, backed by evidence such as an independent valuation of the assets or a recent arm's length sale of a unit.
- How is a property unit trust valued for an SMSF?A property unit trust is valued by taking the property's market value from a registered or certified property valuer, adding the trust's other assets, deducting its liabilities, and working out what the fund's units are worth. The ATO lists a property valuation as evidence where property is the trust's only asset. We value the units, not the property.
- Can an SMSF use last year's valuation?Sometimes. The ATO says a previous independent valuation can be relied on if it is still appropriate, and the trustee should assess that and document it. It should no longer be relied on if it is materially inaccurate or the asset's value has changed significantly. The ATO has also named valuing only every three years as an outdated practice.
- What happens if SMSF assets are not valued at market value?The ATO can apply the most appropriate valuation method instead of accepting the trustee's figure. The ATO has said outdated valuation practices can mean penalties for trustees and compliance action for auditors. An auditor without sufficient evidence of market value should consider a modified audit report and an auditor contravention report (ACR) where the reporting criteria are met.
- What valuation evidence does an SMSF auditor need?An SMSF auditor needs sufficient and appropriate audit evidence that the market value reported for each fund asset is supportable. The ATO says auditors must check this under regulation 8.02B of the SIS Regulations. The auditor does not value the asset, but checks the trustee's valuation, may ask for documents and can seek an independent valuation.
- Can an SMSF buy shares from a related party?Generally no. Super law prohibits an SMSF from acquiring assets from a related party, with exceptions such as listed securities, business real property and certain in-house assets. Permitted acquisitions must be at market value. Private company shares are not listed securities, so trustees need advice on whether an exception applies. We value the shares and do not give advice.
- Does Division 296 affect SMSF valuations?Yes, indirectly. Division 296 applies from 2026-27 and, the ATO says, adds 15% tax on the share of earnings linked to a total super balance above $3 million, and a further 10% above $10 million. Asset values at 30 June feed balances, and auditors must check the evidence behind each market value reported.
- How much does an SMSF valuation cost?An SMSF valuation has a fixed fee set by what the fund holds. Investment entity: $995 + GST. Trading business, by annual turnover: $1,495 + GST, $2,495 + GST or $3,495 + GST. Annual update of our own valuation: $495 + GST per entity. We confirm the fee in writing before we start. No hourly billing.
- How long does an SMSF valuation take?An investment entity takes 2 business days. A trading business with turnover under $2 million takes 2 business days, and one with turnover $2 million to $10 million takes 3 business days. Delivery time starts once payment and all required information have been received. Larger or more complex matters have a delivery date agreed before we start.
Accountants and administrators
- Does my SMSF need an independent valuation?Usually no. The ATO says trustees are not required to use a qualified independent valuer for the fund's accounts and statements. The law requires one only for collectables and personal use assets disposed of to a related party. The ATO recommends one when an asset is a significant share of the fund or complex to value.
- How often do SMSF assets need to be valued?Every year. SMSF trustees must value fund assets at market value for the accounts and statements, as at 30 June. The ATO has named valuing only every three years as an outdated practice. Some events need a value on another date, such as the start day of a retirement income stream and 1 July for minimum pension payments.
- Who can value SMSF assets?Trustees are responsible for valuing SMSF assets. Depending on the situation, the ATO says the valuer can be a registered valuer, a professional valuation service provider, a member of a recognised valuation body, or a person with specific experience or knowledge. A qualified independent valuer is required only for collectables and personal use assets disposed of to a related party.
- What is a qualified independent valuer for an SMSF?In the ATO's guidance, a qualified independent valuer has formal qualifications or recognised knowledge and experience in their professional community, and is independent because they are neither a member nor a related party of the fund. They must be impartial and unbiased. The law requires one only for collectables and personal use assets disposed of to a related party.
- What is market value for an SMSF?Market value for an SMSF is the amount a willing buyer could reasonably be expected to pay a willing seller, assuming they deal at arm's length, after proper marketing of the asset, and both act knowledgeably and prudentially. That is the definition in super law, which the ATO uses in its guide to valuing SMSF assets.
- How do you value units in an SMSF unit trust?Value the trust's assets and liabilities at market value, then work out what the fund's units are worth under the trust deed. The ATO says to consider the trust's assets and the consideration paid. Evidence includes an independent asset valuation, a property valuation where property is the only asset, or the latest arm's length sale of a unit.
- How are unlisted shares in an SMSF valued?Unlisted shares are valued by considering the company's assets and the consideration paid, because there is no quoted price, the ATO says. Evidence includes an independent valuation of those assets or the latest arm's length sale of a share. Otherwise the directors set out their method and assumptions. Consider a qualified independent valuer if the holding is complex or significant.
- Are audited accounts enough to value an SMSF unit trust?Usually not. The ATO says signed audited statements showing a unit trust's assets at cost are unlikely to be sufficient on their own. Trustees should consider the value of the trust's assets and the consideration paid, backed by evidence such as an independent valuation of the assets or a recent arm's length sale of a unit.
- How is a property unit trust valued for an SMSF?A property unit trust is valued by taking the property's market value from a registered or certified property valuer, adding the trust's other assets, deducting its liabilities, and working out what the fund's units are worth. The ATO lists a property valuation as evidence where property is the trust's only asset. We value the units, not the property.
- Can an SMSF use last year's valuation?Sometimes. The ATO says a previous independent valuation can be relied on if it is still appropriate, and the trustee should assess that and document it. It should no longer be relied on if it is materially inaccurate or the asset's value has changed significantly. The ATO has also named valuing only every three years as an outdated practice.
- What happens if SMSF assets are not valued at market value?The ATO can apply the most appropriate valuation method instead of accepting the trustee's figure. The ATO has said outdated valuation practices can mean penalties for trustees and compliance action for auditors. An auditor without sufficient evidence of market value should consider a modified audit report and an auditor contravention report (ACR) where the reporting criteria are met.
- What valuation evidence does an SMSF auditor need?An SMSF auditor needs sufficient and appropriate audit evidence that the market value reported for each fund asset is supportable. The ATO says auditors must check this under regulation 8.02B of the SIS Regulations. The auditor does not value the asset, but checks the trustee's valuation, may ask for documents and can seek an independent valuation.
- Can an SMSF buy shares from a related party?Generally no. Super law prohibits an SMSF from acquiring assets from a related party, with exceptions such as listed securities, business real property and certain in-house assets. Permitted acquisitions must be at market value. Private company shares are not listed securities, so trustees need advice on whether an exception applies. We value the shares and do not give advice.
- Does Division 296 affect SMSF valuations?Yes, indirectly. Division 296 applies from 2026-27 and, the ATO says, adds 15% tax on the share of earnings linked to a total super balance above $3 million, and a further 10% above $10 million. Asset values at 30 June feed balances, and auditors must check the evidence behind each market value reported.
- How much does an SMSF valuation cost?An SMSF valuation has a fixed fee set by what the fund holds. Investment entity: $995 + GST. Trading business, by annual turnover: $1,495 + GST, $2,495 + GST or $3,495 + GST. Annual update of our own valuation: $495 + GST per entity. We confirm the fee in writing before we start. No hourly billing.
- How long does an SMSF valuation take?An investment entity takes 2 business days. A trading business with turnover under $2 million takes 2 business days, and one with turnover $2 million to $10 million takes 3 business days. Delivery time starts once payment and all required information have been received. Larger or more complex matters have a delivery date agreed before we start.
Auditors
- How often do SMSF assets need to be valued?Every year. SMSF trustees must value fund assets at market value for the accounts and statements, as at 30 June. The ATO has named valuing only every three years as an outdated practice. Some events need a value on another date, such as the start day of a retirement income stream and 1 July for minimum pension payments.
- Who can value SMSF assets?Trustees are responsible for valuing SMSF assets. Depending on the situation, the ATO says the valuer can be a registered valuer, a professional valuation service provider, a member of a recognised valuation body, or a person with specific experience or knowledge. A qualified independent valuer is required only for collectables and personal use assets disposed of to a related party.
- What is a qualified independent valuer for an SMSF?In the ATO's guidance, a qualified independent valuer has formal qualifications or recognised knowledge and experience in their professional community, and is independent because they are neither a member nor a related party of the fund. They must be impartial and unbiased. The law requires one only for collectables and personal use assets disposed of to a related party.
- What is market value for an SMSF?Market value for an SMSF is the amount a willing buyer could reasonably be expected to pay a willing seller, assuming they deal at arm's length, after proper marketing of the asset, and both act knowledgeably and prudentially. That is the definition in super law, which the ATO uses in its guide to valuing SMSF assets.
- How do you value units in an SMSF unit trust?Value the trust's assets and liabilities at market value, then work out what the fund's units are worth under the trust deed. The ATO says to consider the trust's assets and the consideration paid. Evidence includes an independent asset valuation, a property valuation where property is the only asset, or the latest arm's length sale of a unit.
- How are unlisted shares in an SMSF valued?Unlisted shares are valued by considering the company's assets and the consideration paid, because there is no quoted price, the ATO says. Evidence includes an independent valuation of those assets or the latest arm's length sale of a share. Otherwise the directors set out their method and assumptions. Consider a qualified independent valuer if the holding is complex or significant.
- Are audited accounts enough to value an SMSF unit trust?Usually not. The ATO says signed audited statements showing a unit trust's assets at cost are unlikely to be sufficient on their own. Trustees should consider the value of the trust's assets and the consideration paid, backed by evidence such as an independent valuation of the assets or a recent arm's length sale of a unit.
- How is a property unit trust valued for an SMSF?A property unit trust is valued by taking the property's market value from a registered or certified property valuer, adding the trust's other assets, deducting its liabilities, and working out what the fund's units are worth. The ATO lists a property valuation as evidence where property is the trust's only asset. We value the units, not the property.
- Can an SMSF use last year's valuation?Sometimes. The ATO says a previous independent valuation can be relied on if it is still appropriate, and the trustee should assess that and document it. It should no longer be relied on if it is materially inaccurate or the asset's value has changed significantly. The ATO has also named valuing only every three years as an outdated practice.
- What happens if SMSF assets are not valued at market value?The ATO can apply the most appropriate valuation method instead of accepting the trustee's figure. The ATO has said outdated valuation practices can mean penalties for trustees and compliance action for auditors. An auditor without sufficient evidence of market value should consider a modified audit report and an auditor contravention report (ACR) where the reporting criteria are met.
- What valuation evidence does an SMSF auditor need?An SMSF auditor needs sufficient and appropriate audit evidence that the market value reported for each fund asset is supportable. The ATO says auditors must check this under regulation 8.02B of the SIS Regulations. The auditor does not value the asset, but checks the trustee's valuation, may ask for documents and can seek an independent valuation.
- Can an SMSF buy shares from a related party?Generally no. Super law prohibits an SMSF from acquiring assets from a related party, with exceptions such as listed securities, business real property and certain in-house assets. Permitted acquisitions must be at market value. Private company shares are not listed securities, so trustees need advice on whether an exception applies. We value the shares and do not give advice.
- Does Division 296 affect SMSF valuations?Yes, indirectly. Division 296 applies from 2026-27 and, the ATO says, adds 15% tax on the share of earnings linked to a total super balance above $3 million, and a further 10% above $10 million. Asset values at 30 June feed balances, and auditors must check the evidence behind each market value reported.
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