Short answer
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.
What must an SMSF auditor be satisfied about?
The auditor must be satisfied that sufficient and appropriate audit evidence supports the market value reported for each fund asset. The ATO sets this out in its guidance on Division 296 and SMSF audits, citing regulation 8.02B of the SIS Regulations. The same guidance says auditors must check that returns are allocated to members fairly and reasonably, under regulation 5.03.
The trustee values the fund's assets and the auditor does not. The ATO's guide to valuing SMSF assets says the auditor checks the valuation, may ask for documents, and can seek an independent valuation as part of the audit. SMSF Adviser reported in March 2025 that in all auditor reviews the ATO had finalised so far, the auditor had not obtained sufficient evidence.
What evidence supports the value of unlisted assets?
For private company shares and unit trust units, the ATO's guide lists these kinds of evidence:
- An independent valuation of the entity's assets.
- A property valuation, where property is the only asset.
- The most recent arm's length sale of a share or unit.
- Failing those, the directors' or trustees' substantiation, setting out the method and assumptions.
Signed audited statements that show assets at cost are unlikely to be sufficient on their own. The valuation as a whole 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. Listed securities are simpler, because the closing price on 30 June is the market value.
A previous independent valuation can be relied on if it is still appropriate and the trustee has assessed and documented that. It should no longer be relied on if it is materially inaccurate or the value has changed significantly.
What does a valuation from us give the auditor?
Our reports are built to be used as audit evidence. A suitably qualified business valuer at Valuation Group prepares the valuation, independent of the fund: never a member, trustee or related party of it. Before the final report, the client signs a representation letter confirming the information supplied.
Auditors decide what evidence they need for each fund, and nothing here promises that an auditor will accept a report. Accountants and administrators sending several funds at once: We agree a delivery schedule for batches before we start. Our accountants and auditors page explains how orders work.
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...
- 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 an auditor accept a value prepared by the trustees?
Yes, if it is supported. The ATO says trustees value the assets and are not required to use a qualified independent valuer for the accounts. The value still has to rest on objective and supportable data, and if the evidence is insufficient the auditor should consider a modified audit report and an auditor contravention report where the reporting criteria are met.
More short answers
- 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...
- 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...
- 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 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...
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.