SMSF Property Valuations
What you need to know
The Australian Taxation Office (ATO) is increasingly focused on the property holdings of Self Managed Super Funds (SMSFs), particularly the market valuations reported for these properties.
The ATO has specific guidelines for obtaining property valuations to ensure they comply with current tax and superannuation laws. One key guideline is the frequency of valuations. The ATO recommends that SMSF properties be valued annually. Although property values, especially for commercial properties, may not change significantly in one year, it’s important to document the decision and provide a basis if you choose to rely on a previous valuation.
Another important factor is the information that should be included in property valuation reports. Every valuation should contain the following details:
Property Description: A clear description of the property, its location, and any features that may affect its value.
Valuation Method: The methodology used to determine the property’s value (e.g., recent sales data, or an assessment by a qualified, independent valuer).
Comparable Sales Data: Information about recent sales in the area to help support the property’s value.
Market Rent: An estimate of the rent the property is likely to achieve, ensuring it aligns with commercial (arm’s length) terms.
Valuation Date: The date the valuation was conducted.
For residential properties, in most cases our superannuation software can provide an approved valuation. Unfortunately, commercial property valuations are more complex and cannot be provided by our team. If you are organising a commercial property valuation, please ensure the valuation report includes the information listed above (points 1–5).
We understand that the valuation process can be complex, so please feel free to reach out if you have any questions. We’re here to help ensure your SMSF reporting is accurate and compliant.