Short answer
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.
What does the ATO say about valuing unlisted shares?
The ATO's guide to valuing SMSF assets says to consider the value of the company's assets and the consideration paid for the shares. 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.
Evidence that supports the value can include an independent valuation of the company's assets or the most recent arm's length sale of a share. Without that, the directors can substantiate the value by setting out the method and assumptions. The ATO says signed audited statements that show assets at cost are unlikely to be sufficient on their own.
What information helps?
We usually ask for the company's financial statements for the valuation date, its constitution and any shareholders agreement, the share register, details of recent share sales or issues, and information on loans and major assets. Documents come only through the private upload link on your matter, never by email.
Fixed fees follow what the company does. Investment company: $995 + GST. Trading company, by annual turnover: $1,495 + GST, $2,495 + GST or $3,495 + GST. See private company shares valuation and pricing.
We value shares. Trustees and their advisers decide what to do with the result.
Read the full guide
- 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...
- Valuing a business interest held by an SMSFWhen a fund holds shares or units in a company or trust that runs a trading business, the value rests on what the business can sustainably earn 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...
- Got an ATO letter about unchanged SMSF values?In 2024 the ATO contacted SMSF trustees and auditors about funds that had reported assets such as unlisted trusts at the same value for three years...
- 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 the directors set the value of the company's shares?
The ATO says directors can substantiate the value where there is no independent valuation or recent arm's length sale, by setting out the method and assumptions. The value still has to rest on objective and supportable data, and the ATO says to consider a qualified independent valuer if the holding is complex or significant.
More short answers
- 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...
- 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...
- 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...
- 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...
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.