The ATO's SMSF valuation guidelines, explained

What is the ATO's guide to valuing SMSF assets?

It is the ATO's plain-language statement of how trustees should value fund assets, what evidence supports a value and when the ATO will accept it. The guide to valuing SMSF assets (QC26343) was last updated on 15 May 2026. The ATO says it is not a comprehensive handbook and does not remove the trustees' duty to manage investments prudently. This article follows the guide in order and paraphrases it.

Why must SMSF trustees value fund assets?

Because several super law obligations depend on the value of the fund's assets. The guide lists these situations:

• preparing the fund's accounts and statements
• acquisitions between the fund and related parties
• making and maintaining investments on an arm's length basis
• disposing of certain collectables and personal use assets to a related party
• testing the 5% in-house asset limit
• starting a retirement phase income stream, which counts towards the transfer balance cap
• calculating members' total super balances at 30 June
• working out minimum pension payments on 1 July

The one that applies to every fund every year is the accounts. Under regulation 8.02B of the SIS Regulations, an asset must be valued at market value when the accounts and statements are prepared, for each income year from 2012 to 2013 onwards.

What does market value mean, and what is a fair and reasonable process?

Market value is the amount a willing buyer could reasonably be expected to pay a willing seller, assuming the two deal at arm's length, the sale follows proper marketing, and the seller acts knowledgeably and prudentially. The definition is in the super legislation and applies equally to a share, a unit or a building.

The ATO treats a valuation as fair and reasonable when it meets all five of these:

• it is based on objective and supportable data
• it considers all relevant factors
• it is made in good faith
• it uses a rational and logical process
• it is capable of explanation to a third party

The last test is the practical one: a number that cannot be explained to an outsider does not meet it.

Who can value SMSF assets, and when is an independent valuer needed?

For most purposes, the ATO says a valuation can be done by a registered valuer, a professional valuation service provider, a member of a recognised valuation body, or a person without formal qualifications who has specific experience or knowledge. The law itself requires a qualified independent valuer in one case only: collectables and personal use assets disposed of to a related party.

A qualified independent valuer is qualified by formal qualifications or by recognised knowledge, experience and judgment in the professional community. Independent means neither a member of the fund nor a related party such as a relative, and impartial, unbiased and free of influence. Our valuer is independent of your fund in exactly that sense: never a member, trustee or related party of it.

For the accounts, trustees are not required to use one. The ATO recommends one where an asset is a significant proportion of the fund's value or the valuation is likely to be complex or difficult. An approved SMSF auditor can also seek an independent valuation as part of the audit.

Can trustees rely on last year's valuation?

Sometimes. A trustee who has an independent valuation does not need a new one every year, but must consider whether the earlier valuation still supports this year's figure, assess that, and document it.

The ATO says a valuation that has become materially inaccurate, or an asset whose value has changed significantly, should no longer be relied on. A significant event, such as a natural disaster, a global pandemic, market volatility or a change in the character of the asset, calls for a new valuation, a valuation made after the event, or alternative evidence. As reported by SMSF Adviser, the ATO has also called valuing only every three years an outdated practice. See ATO letters about unchanged values.

What do trustees and auditors each do?

The trustee values the assets and the auditor checks the valuation. The ATO says the trustee must value all fund assets at market value for the accounts and make sure the valuation rests on objective and supportable data.

The auditor's role is not to value assets or decide their market value. The auditor may ask for the documents showing how the value was reached, then checks that assets have been valued correctly and assesses and documents whether the basis is appropriate for that type of asset. See our page for accountants and auditors.

What evidence does the ATO list for each type of asset?

The guide gives specific evidence for each main asset type, summarised below.

How does the guide treat unlisted shares and units?

It asks the trustee to consider the value of the entity's assets and the price paid on acquisition. Where no independent expert valuation is available, the trustee should provide evidence of how the directors or trustees substantiated the value: the objective and supportable data relied on, the method used and the assumptions made.

The guide also says company or unit trust accounts that are signed and audited but carry assets at cost are unlikely to be sufficient evidence on their own. A qualified independent valuer is worth considering where the asset is complex or a large share of the fund. See private company shares and unit trusts.

What does the guide say about related parties and pensions?

Trustees must not intentionally acquire assets from related parties, with exceptions such as listed securities, business real property and certain in-house assets, and permitted assets must be bought at market value. Investments must also be made and kept on an arm's length basis. To test the 5% in-house asset limit, trustees value all assets at the end of the income year. See related-party transfers and the in-house asset test.

For a pension, assets are valued at 30 June for total super balances, on the start day for the transfer balance cap, and on 1 July for the minimum payment. For transfer balance cap purposes, the ATO accepts a reasonable estimate of a pension's value in limited cases, for example where a pension starts on 1 July and a full valuation of supporting assets such as private company shares is not possible by 28 October, or where a pension starts part way through the year. It cannot be used for the accounts or for exempt current pension income.

When will the ATO accept a trustee's valuation?

The ATO says it will generally accept a valuation that does not conflict with the guide, matches the value used for any related capital gains tax event, and is based on objective and supportable data. If it decides the most appropriate method was not used, it can reject the valuation and apply the most appropriate method itself. It may review a valuation and ask for the evidence.