When managing a self-managed superannuation fund (SMSF), valuing your assets correctly isn’t just good practice—it’s required by law. The Australian Taxation Office (ATO) recently reminded SMSF trustees that accurate valuations are essential. This is especially important with new superannuation tax reforms potentially on the way.
The ATO requires trustees to value SMSF assets at market value each financial year when preparing accounts and financial statements. This supports transparency and ensures your fund complies with the law.
Market value refers to the price a willing buyer would pay a willing seller in an open market. This rule applies to many asset types, including:
ATO data shows that more than 16,000 SMSFs reported unchanged asset values—such as for property or unlisted trusts—over three consecutive years. That raised concerns.
As a result, the ATO contacted affected trustees and auditors in March and April 2024, reminding them of their responsibilities. Follow-up checks revealed:
Trustees who fail to update asset values risk:
In February 2023, the Federal Government proposed a new tax on superannuation balances over $3 million. Known as Division 296, it introduces a 30% concessional tax rate on future earnings above that threshold.
If passed, this change would take effect from 1 July 2025. As of March 2025, the legislation is still before Parliament and has not yet been enacted.
Why this matters: Accurate valuations will directly impact how this new tax applies to high-balance SMSFs. Trustees should stay up to date on the legislation and review their fund’s asset values accordingly.
The ATO provides detailed Valuation Guidelines for SMSFs, which outline how different asset types should be valued.
Here are the key takeaways:
Valuations should be based on:
Valuations should consider:
If the asset value exceeds a set threshold, trustees must use a qualified independent valuer.
Trustees should document the valuation process clearly and review valuations regularly. This ensures they reflect current market conditions and meet compliance standards.
SMSF auditors must verify that asset values are accurate and supported by evidence. If a trustee fails to provide reliable information:
The ATO has confirmed it will continue focusing on auditor compliance throughout 2025.
Accurate and timely asset valuations are essential for SMSF trustees. They support:
If you hold complex assets like property or unlisted investments, it’s wise to seek professional advice. This ensures your fund remains compliant and positioned for long-term success.
At Amarose Accounting, we help trustees navigate asset valuations with ease. Whether you need support with documentation, valuation strategy, or ATO compliance—we’ve got you covered.
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