No, you do not need to get an independent property valuation each and every year but it is highly recommended that a recent and relevant one has been obtained in the last 3 years.
Your property still must be valued at market value each year by the trustees, which should give reference to any independent valuation, current market conditions and any improvements to the property.
The ATO advises that determining market values of assets that are eligible for transitional CGT relief needs to be on objective and supportable data. This requirement also applies when determining the market value of assets supporting members’ retirement income streams and accumulation accounts for the purposes of calculating the members’ total superannuation balances. The ATO recommends that a recent valuation, however, would be prudent if you expect that the valuation is now materially inaccurate or an event occurred that may have affected the value of the property since it was last valued. This may be due to a change in market conditions or natural disaster.
Click here to view the ATO’s valuation guidelines for SMSFs.
Disclaimer: The information contained in this document is provided for educational purposes only, is general in nature and is prepared without taking into account particular objective, financial circumstances, legal and tax issues and needs. The information provided in this article is not a substitute for legal, tax and financial product advice. Before making any decision based on this information, you should assess its relevance to your individual circumstances. While SMSF Association believes that the information provided in this article is accurate, no warranty is given as to its accuracy and persons who rely on this information do so at their own risk. The information provided in this bulletin is not considered financial product advice for the purposes of the Corporations Act 2001.