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Anna Han Willetts

Nov 30, 2021

Edited: Nov 30, 2021

SMSF property valuation on a yearly basis or 3-year basis?

in SMSF Technical Forum

What are the current ATO guidelines on this subject?

In the ATO guidelines here, it does mention the valuation is required when 'preparing the SMSF financial accounts and statements'. Does this mean the property in SMSF has to be valued on a yearly basis?

Thanks a lot!

1 answer0 replies

Comments (1)

THE AUDITORS INSTITUTE

Nov 30, 2021

Hi Anna

Yes the Fund's investments such as property should technically be valued each year.

It has been industry practice to get a valuation done every 3 years.

My view is that to meet the requirement to value assets such as property at market value each year that the trustees in years when a valuation has not been obtained at a minimum consider the property value and sign an annual declaration that they have considered the value at 30 June.

Wording such as the following could be used:

RESOLUTION OF TRUSTEE OF XYZ SUPER FUND DATED 30 JUNE 2021 PRESENT : Julian May Donna May TRUSTEES ASSESSMENT OF REALISABLE VALUE: The Chairperson reported that - 1. The investment property situated at 424 Dean Court, Dandenong VIC 3175 was independently valued on 30 June 2020 for $1,000,000.00. 2. In line with Superannuation Industry (Supervision) Act 1993 (SIS Act) and the Superannuation Industry (Supervision) Regulations 1994 (SIS Regulations) Investments of the fund are required to be measured at net market value at reporting date or at commencement of paying members benefits. IT WAS RESOLVED THAT : 1. With regard to current market values of similar properties in the local area, current rental yield and most recent council rates notice valuations, the Trustees resolve that the property value is maintained at the value noted above as at 30 June 2021. CLOSED : There being no further business the meeting was then closed. Confirmed as a true record of the meeting held this day.

Julian May Donna May Director Director

Thanks

SMSF AAA