Short answer
Trustees are responsible for valuing SMSF assets. Depending on the situation, the ATO says the valuer can be a registered valuer, a professional valuation service provider, a member of a recognised valuation body, or a person with specific experience or knowledge. A qualified independent valuer is required only for collectables and personal use assets disposed of to a related party.
Who is responsible for valuing SMSF assets?
The trustees are. The trustee values the fund's assets, and the auditor does not. The auditor checks the valuation, may ask for supporting documents, and can seek an independent valuation as part of the audit.
Trustees can prepare a value themselves or engage a valuer to prepare one. Either way, the responsibility for the figure in the accounts stays with the trustees.
Whoever prepares the figure, the ATO's guide to valuing SMSF assets says it must come from a fair and reasonable process. That means objective and supportable data, all relevant factors considered, good faith, rational and logical reasoning, and a result that can be explained to a third party.
Which valuers does the ATO recognise?
The ATO says the right valuer depends on the situation. Depending on the asset and the purpose, a valuation may come from:
- A registered valuer.
- A professional valuation service provider.
- A member of a recognised valuation body.
- A person with specific experience or knowledge of the asset.
Only one case has a fixed rule. A qualified independent valuer is required when a collectable or personal use asset is disposed of to a related party. The ATO recommends one when an asset is a significant proportion of the fund's value or the valuation is likely to be complex.
How should trustees choose a valuer?
Ask three questions before engaging anyone:
- Is the valuer qualified for this kind of asset, by formal qualifications or recognised experience?
- Is the valuer independent of the fund, meaning neither a member nor a related party of it?
- Will the report explain the method, the information relied on and the assumptions, so the auditor can follow it?
Who values private company shares and unit trust units?
A suitably qualified business valuer at Valuation Group can. These holdings have no market price, so the valuation looks at what the company or trust owns and owes and, if it trades, at the business itself. The valuer is independent of the fund: never a member, trustee or related party of it. Our guides cover private company shares and unit trusts.
Where a trust or company owns property, the property figure comes from a valuation by a registered or certified property valuer that the client already holds, and we value the units or shares using it. We never sign a property figure ourselves.
We value assets. Trustees and their advisers decide who should value each holding, and we do not give legal, tax or financial advice.
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...
- Valuing a trust or company that owns propertyWhen a trust or company owns property, the fund holds units or shares, not the property. We value those units or shares, using a property valuation...
- 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 an SMSF member value the fund's assets?
A member who is a trustee can prepare a value for the fund's accounts, because the trustees are responsible for the fund's values. The valuer must be independent for a collectable or personal use asset disposed of to a related party. Independent means neither a member nor a related party of the fund.
More short answers
- 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...
- 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...
- 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...
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.