Short answer
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.
What is Division 296?
Division 296 is law and applies from 2026-27, according to the ATO's guidance on Division 296 and SMSF audits. From 1 July 2026 it adds tax for individuals on the proportion of earnings that relates to a total super balance above a threshold.
| Total super balance above | Extra tax on the proportion of earnings |
|---|---|
| $3 million (the large super balance threshold) | 15% |
| $10 million (the very large super balance threshold) | An additional 10% |
This page covers valuation evidence only. How Division 296 applies to a member is for that member and their tax adviser, and the ATO's own pages explain the calculation.
Why do asset values matter for Division 296?
A member's total super balance at 30 June depends on the value of the assets behind it. The ATO's guide to valuing SMSF assets lists total super balance as one of the reasons a valuation is needed. Unlisted assets such as private company shares and unit trust units have no quoted price, so the value has to be supported by evidence.
The ATO's Division 296 guidance for auditors says accurate reporting supports Division 296 calculations. It says auditors must check that sufficient and appropriate evidence supports the market value reported for each fund asset, under regulation 8.02B, and that returns are allocated to members fairly and reasonably, under regulation 5.03. If the evidence is insufficient, the auditor should consider a modified audit report and an auditor contravention report (ACR) where the reporting criteria are met.
Listed shares are the simple case, because the closing price on 30 June is the market value. The harder cases are private company shares, units in a unit trust, and a trust or company that owns property. For those, the value rests on evidence, and where property is involved the property figure comes from a registered or certified property valuer. See our guides to unit trust valuation and private company shares valuation.
How does a valuation fit in?
A valuation of the fund's unlisted holdings gives the trustees and the auditor a supportable market value at 30 June. We value assets. We do not calculate Division 296 tax, and we do not tell anyone whether to contribute, roll over or start a pension. Trustees and their advisers decide that.
Our guides to Division 296 valuation and the 30 June valuation explain what we provide.
Read the full guide
- Unit trust valuation for SMSFsUnits in a private unit trust need a market value at 30 June like any other fund asset. This guide explains where the value of a unit comes from...
- Private company shares in an SMSFShares in an unlisted company need a market value at 30 June like any other fund asset. Here is how they are valued, what the auditor looks for, and...
- Division 296 and SMSF valuationsDivision 296 is law from 1 July 2026. In an SMSF, a member's balance rests on the values the fund reports, so a supportable value for each unlisted...
- 30 June SMSF valuationEvery 30 June the trustee reports each fund asset at market value, and the auditor checks the evidence. This page explains what that means for...
- How we value SMSF holdingsThe methods we use, what we analyse and what the report contains.
- Fixed fees, confirmed before we startFixed fees set by what the fund holds. No hourly billing.
Related questions
When does Division 296 start?
The ATO says Division 296 is law and applies from 2026-27, with the extra tax applying from 1 July 2026.
Does the auditor check anything extra for Division 296?
The ATO says accurate reporting supports Division 296 calculations. Auditors must check evidence of the market value of each asset and that returns are fairly and reasonably allocated to members, which are existing audit requirements.
More short answers
- 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...
- 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...
- 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...
- 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...
Last updated . General information only, not advice about your circumstances. A valuation depends on the facts of the business and the purpose it is for.