Short answer
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.
When does the law require an independent valuation?
Only in one case. Super law requires a qualified independent valuer when an SMSF disposes of a collectable or a personal use asset to a related party. The ATO's guide to valuing SMSF assets applies that to assets acquired on or after 1 July 2011, and to assets acquired before then and disposed of after 30 June 2016.
For everything else, the trustees value the fund's assets. That covers the accounts and statements at 30 June, the 5% in-house asset test and arm's length dealings. The ATO says the value must come from a fair and reasonable process: objective and supportable data, all relevant factors, good faith, and reasoning that can be explained to a third party.
When does the ATO recommend an independent valuation?
The ATO recommends a qualified independent valuer where an asset is a significant proportion of the fund's value or the valuation is likely to be complex. Unlisted holdings often meet one or both tests, because they have no quoted price.
- A large share of the fund. One private company or unit trust can make up most of a fund's value.
- A complex valuation. A trading company, or a unit trust with several kinds of asset, needs analysis rather than a lookup.
- A significant event. A disaster, a pandemic, market volatility or a change in the asset's character calls for a new valuation or other evidence.
- An auditor's request. The auditor does not value the asset, but can seek an independent valuation as part of the audit.
The ATO's guidance on unlisted securities and unit trusts says the same thing: consider a qualified independent valuer when the holding is complex or significant.
What makes a valuer independent?
Independent means the valuer is neither a member nor a related party of the fund, and is impartial and unbiased. The valuer at Valuation Group is independent of the fund: never a member, trustee or related party of it.
A valuation can be reused in some cases. A previous independent valuation can be relied on if it is still appropriate, and the trustee should assess and document that. It should no longer be relied on if it is materially inaccurate or the value has changed significantly.
We value assets. Whether a fund needs an independent valuation for a particular holding is a decision for the trustees, with their accountant and auditor, and we do not give legal, tax or financial advice. The fund check shows which kinds of evidence the ATO's guidance points to for your situation.
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...
- 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
Can trustees value SMSF assets themselves?
Yes, for the fund's accounts and statements. The ATO says trustees are not required to use a qualified independent valuer for those. The value must still come from a fair and reasonable process with objective and supportable data, and the auditor will check it.
Will my auditor ask for an independent valuation?
They can. The ATO says an auditor can seek an independent valuation as part of the audit. Ask your auditor early which evidence they will want for unlisted assets such as private company shares and unit trusts.
More short answers
- 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...
- 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...
- 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...
- 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...
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.