SMSF valuation

What is an SMSF valuation?

An SMSF valuation is a written opinion of what an asset held by a self managed super fund is worth at a stated date. The measure is market value. In super law that means the price a willing buyer would pay a willing seller, dealing at arm's length, after proper marketing, with both acting knowledgeably and prudentially. The ATO's guide to valuing SMSF assets sets out how trustees should reach it.

The ATO says a valuation must come from a fair and reasonable process. In its guide, that means:

• Objective and supportable data. The figure rests on evidence, not on a hunch or on what was paid years ago.
• All relevant factors. Nothing material is left out.
• Good faith. The person valuing acts honestly.
• A rational and logical method. The steps follow from one another.
• Capable of explanation to a third party. An auditor, the ATO or a new trustee can follow how the number was reached.

The trustees are responsible for the values in the fund's accounts. A valuer helps them reach a value and records the reasoning. The auditor does not set the value but checks that it is supported. Our reports are built to be used as audit evidence: they state the valuation date, the information relied on, the method and the assumptions.

When does an SMSF need a valuation?

Every year at 30 June, because the fund's accounts and member statements need the market value of every asset. Other events call for a value at other dates. The ATO's guide lists these occasions:

• Accounts and member statements at 30 June, for every asset. See the 30 June valuation.
• Acquisitions between the fund and a related party. Permitted acquisitions must be made at market value. See related-party transfers.
• Arm's length dealings. Investments must be made and maintained on an arm's length basis. See arm's length valuations.
• The 5% in-house asset test. All assets are valued at year end to test the limit. See the in-house asset test.
• Starting a retirement phase income stream. Pension assets are valued at the pension start day for the transfer balance cap.
• Total super balance and minimum pension payments. Pension assets are valued at 30 June for the total super balance and on 1 July for the minimum payment.
• Collectables and personal use assets sold to a related party. The law requires a valuation by a qualified independent valuer.

For transfer balance cap purposes, the ATO accepts a reasonable estimate of a pension's value in limited cases, for example a pension starting on 1 July where a full valuation of supporting assets such as private company shares is not possible by 28 October. The estimate cannot be relied on for the fund's accounts or exempt current pension income. Trustees and their advisers decide which of these occasions apply to their fund.

Does an SMSF valuation have to be independent?

Not for the accounts. The ATO says trustees are not required to use a qualified independent valuer for the accounts and member statements. The law requires one only for collectables and personal use assets sold to a related party of the fund, and the ATO's guide sets out the acquisition and disposal dates that are caught.

The ATO does recommend a qualified independent valuer where an asset is a significant proportion of the fund's value or the valuation is likely to be complex. The guide defines the two words:

• Qualified means qualified by formal qualifications, or by knowledge and experience recognised in the valuer's professional community.
• Independent means neither a member of the fund nor a related party of it, and impartial, unbiased and not influenced. We do not accept an engagement where the valuer is a member or related party of the fund.

Depending on the situation, the ATO says a valuation may be done by a registered valuer, a professional valuation service provider, a member of a recognised valuation body, or a person with specific experience or knowledge. Ours is prepared by a suitably qualified business valuer at Valuation Group, independent of the fund. Guided by APES 225 Valuation Services.

The auditor's role is to check, not to value. An auditor may ask for the documents behind a value and can seek an independent valuation as part of the audit. A previous independent valuation can be relied on if it is still appropriate, and the trustees should assess and document that. It should no longer be relied on if it is materially inaccurate or the value has changed significantly. Whether a valuation is enough is the auditor's decision, and we cannot speak for any auditor.

What evidence works for each kind of asset?

It depends on the asset. Listed securities need a closing price, property needs a proper property valuation, and unlisted shares and units need the entity's assets assessed. This table sets out what the ATO's guide expects and what we provide.

Property held directly by your fund: we are not taking direct property valuations yet. If a trust or company owns the property, we value the units or shares using a property valuation you already hold.

For unlisted shares and unit trusts, the ATO's guide tells trustees to consider the value of the entity's assets and the price paid. It adds that signed audited financial statements carrying assets at cost are unlikely to be sufficient on their own. After a significant event, such as a disaster, a pandemic, market volatility or a change in the asset's character, the guide says to get a new valuation or alternative evidence.

Why do SMSF valuations matter now?

Because the ATO has been checking unchanged values on unlisted assets, and Division 296 is now law. The ATO says accurate reporting supports Division 296 calculations.

In March and April 2024 the ATO contacted SMSFs and auditors where assets such as property and unlisted trusts had been reported at the same value for three consecutive years. Accountants Daily reported about 16,500 funds at the time. SMSF Adviser later reported more than 16,000 funds and over 1,000 auditors. The ATO's own initial evaluation, in its key messages of 8 July 2025, found around 63% of funds changed property valuations and 45% changed unlisted trust investment valuations after its market valuation letter campaign. (SMSF Adviser reported 80% and 48% in March 2025.)

The ATO named two outdated practices: valuing only every three years, and not obtaining objective data on the underlying assets of an unlisted unit trust. As reported, it said this can mean penalties for trustees and compliance action for auditors, and that in every auditor review finalised so far the auditor had not obtained sufficient evidence. See the ATO letter.

The ATO says that from 1 July 2026 an extra 15% tax applies to the proportion of earnings that relates to a total super balance above $3 million, and an additional 10% on the proportion above $10 million (the 2026-27 thresholds). Auditors must check that sufficient appropriate evidence supports the market value reported for each fund asset under regulation 8.02B of the SIS Regulations. If it does not, the ATO says the auditor considers a modified audit report and an auditor/actuary contravention report where the reporting criteria are met. See Division 296.

This page is about valuation. Whether Division 296 affects a particular fund, and what to do about it, is for the trustees and their advisers.

What do we value, and how is it priced?

We value private company shares, units in private unit trusts, trusts and companies that hold property, and interests in trading businesses, for a fixed fee confirmed in writing before we start.

• Private company shares: investment holding companies and trading companies.
• Units in private unit trusts, including related unit trusts.
• Trusts and companies that own property: we value the units or shares, using a property valuation from a registered or certified property valuer.
• Interests in trading businesses held through a company or trust.

• Investment entity, valued from its net assets: $995 + GST.
• Trading business, turnover under $2 million: $1,495 + GST.
• Trading business, turnover $2 million to $10 million: $2,495 + GST.
• Trading business, turnover over $10 million or a complex structure: $3,495 + GST.
• Annual 30 June update of a valuation we prepared last year, same entity, no restructure or major change: $495 + GST per entity.

Delivery is 2 business days for an investment entity or a trading business with turnover under $2 million, and 3 business days for turnover $2 million to $10 million. Larger or complex valuations are agreed before we start. Delivery time starts once payment and all required information have been received. We confirm the fee in writing before we start. No hourly billing. See pricing for add-ons.

Accountants, administrators and auditors ordering for several funds can use the professionals page. We agree a delivery schedule for batches before we start.

We value assets. We do not give legal, taxation, investment or financial product advice, and we do not tell anyone whether to set up a fund, buy, hold, sell, contribute, roll over or start a pension. Trustees and their advisers decide.

How does an SMSF valuation work with us?

1. Tell us what the fund holds and why you need the value. Use the quote form or call 0433 475 518, Mon to Fri, 9am to 5:30pm AEST. Give us the valuation date and your audit date.
2. Agree the scope and the fee. We confirm the fee in writing before we start. No hourly billing.
3. Send the documents through the private upload link on your matter. Never by email.
4. A suitably qualified business valuer at Valuation Group prepares the valuation. Before the final report, the trustees sign a representation letter confirming the information supplied.
5. You receive the report for the trustees' file and the auditor.

How we value explains the method. Guided by APES 225 Valuation Services.

A commercial valuation report is not a court expert report. Court or tribunal work is a separate engagement with its own fee. If an SMSF interest is part of a property settlement, it goes through our dedicated family law practice, Family Law Valuations. See SMSF family law valuations.