SMSF Property Valuations

October 2021

Written by Daniel Shaw, DFK Benjamin King Money, SMSF Specialist Advisor (SSA™)

The ATO has provided updated guidance on the types of evidence a trustee can use when valuing its property holdings in an SMSF.

Prior to 1 July 2012, you, as an SMSF trustee, could provide a valuation for SMSF assets every three years. However, you are now required to annually report the market value of assets with evidence to support the valuation.

Why do you need up-to-date asset valuations?

Up-to-date asset valuations are critical to members of an SMSF as firstly, it is a legal requirement for you to value your assets each year. This helps to accurately calculate your member balances, which assists with, for example, determining your eligibility to different contribution thresholds or for calculating your minimum pension payment requirements from an account-based pension.

An up-to-date market valuation will also be required where there is a related party transaction of property in or out of the SMSF to ensure it is completed at arm’s-length to avoid any issues around non-arm’s length income (NALI) or non-arm’s length expenditure (NALE) as per the recent ATO guidelines.

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Daniel Shaw, CA, B.Com (Acc), SSA™ - Guest Contributor

Daniel was recently promoted to Director in July 2021, however has been with DFK Benjamin King Money, since 2012. He started with the firm as a graduate superannuation accountant which has now become his specialist area and prides himself on assisting clients with their annual compliance requirements.