Short answer
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 does qualified mean for an SMSF valuer?
Qualified means the valuer has formal qualifications, or knowledge and experience that is recognised in their professional community. That is the test in the ATO's guide to valuing SMSF assets. A trustee or auditor can ask a valuer which qualifications or experience they rely on for the asset being valued.
The qualification should fit the asset. A valuer's experience with property does not by itself show experience in valuing a private company or a unit trust.
What does independent mean?
Independent means the valuer is neither a member nor a related party of the fund, and is impartial, unbiased and not influenced by the people who want a particular figure. That is why a trustee, member or related party of the fund cannot give the independent valuation the law requires for a collectable or personal use asset disposed of to a related party.
At Valuation Group the valuer is independent of the fund: never a member, trustee or related party of it. The fee is fixed by what the fund holds, not by the value reached, so the figure does not change what we are paid. We confirm the fee in writing before we start. No hourly billing.
When does an SMSF need a qualified independent valuer?
| Situation | What the ATO says |
|---|---|
| A collectable or personal use asset disposed of to a related party | Required by law, for assets acquired on or after 1 July 2011 and for assets acquired before then and disposed of after 30 June 2016 |
| An asset that is a significant proportion of the fund, or a valuation likely to be complex | Recommended |
| Unlisted shares or unit trust units that are complex or significant | Consider one |
| The fund's accounts and statements | Not required, but the value must come from a fair and reasonable process |
A valuer's report is evidence the trustee can use. The trustee remains responsible for the value in the fund's accounts, and the auditor checks it. A previous independent valuation can be relied on if it is still appropriate, but not if it is materially inaccurate or the value has changed significantly.
We value assets and do not give legal, tax or financial advice. Trustees and their advisers decide when a qualified independent valuer is the right choice for a holding.
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...
- Related-party and in-specie transfer valuationsWhen an SMSF acquires an asset from a related party, or an asset moves in specie into or out of the fund, the price is tested against market value at...
- 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 fund's accountant be the independent valuer?
That depends on two tests. The ATO asks whether the person is qualified by formal qualifications or recognised experience for the asset, and whether they are independent of the fund: neither a member nor a related party, and impartial and unbiased.
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...
- 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...
- 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...
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.