Accurate asset valuation is an essential part of managing a self-managed super fund (SMSF). Whether you are completing a new SMSF setup or preparing the annual accounts, every fund must ensure its assets are recorded at market value each year. Correct valuations help maintain ATO compliance, support audit requirements, and provide members with a clear view of their fund’s true performance.
Valuation of Listed Shares and Managed Funds
Listed investments are straightforward to value because market prices are publicly available.
- Valued at market price as at 30 June each year
- Data can be sourced from the ASX, fund manager, or broker statements
- No professional valuation is required
- The closing price on 30 June is accepted as market value for reporting
Valuation of Unlisted Investments
Unlisted assets, such as shares in private companies, units in unlisted trusts, and private loans, require more detailed assessment to determine their market value.
- Valued based on the asset’s financial performance, underlying assets, and comparable market evidence
- Objective and supportable evidence is required, such as recent financial statements or independent valuations
- Should be reviewed annually or when a significant event affects value
- Independent valuation is recommended to ensure compliance and consistency
When planning your SMSF setup, it’s important to consider how unlisted investments will be valued and reported in future years. Engaging a qualified SMSF accountant from the start can help set up a structure that meets ongoing valuation and compliance obligations.
Valuation of Collectables and Personal-Use Assets
Collectables and personal-use assets are subject to stricter rules to protect the integrity of SMSF investments. These can include artwork, jewellery, vehicles, wine, or coins.
- Must be valued at market value by a qualified independent valuer
- Required to be revalued annually or whenever sold or transferred to a related party
- Cannot be used by members or stored at a member’s private residence
- Must be insured in the name of the SMSF within seven days of purchase
- Professional valuation helps ensure compliance with the Superannuation Industry (Supervision) Regulations
Valuation of Real Estate Property
Property is a common SMSF investment and one of the most significant in value, so accurate valuation is critical. Valuation is required for annual reporting, related party transactions, property acquisitions or disposals, and limited recourse borrowing arrangements (LRBAs).
Valuation methods vary depending on property type:
- Residential property – Direct comparison (market approach) or summation method
- Commercial property – Capitalisation (income approach) supported by direct comparison
- Rural property – Market or summation approach depending on the income profile
Information usually required includes:
- Lease details, title searches, and planning information
- Rental income and outgoings
- Comparable property sales or rental evidence
- Inspection details and notes on construction, finishes, and surrounding area
Good practice for trustees includes:
- Reviewing property valuations annually or through a desktop assessment
- Engaging valuers with appropriate qualifications and experience
- Avoiding reliance on automated valuation tools, which may overlook key property features
- Keeping records and supporting documents for audit and ATO review
Why Accurate Valuations Matter
Accurate valuations ensure the SMSF meets its obligations under the Superannuation Industry (Supervision) Regulation 8.02B, which requires all assets to be reported at market value. Reliable valuations also:
- Ensure fair member balances and benefit payments
- Support the annual audit and ATO compliance requirements
- Reduce the risk of penalties and review delays
- Provide transparency for trustees and members
Before a new SMSF setup, it’s important to understand these valuation requirements. The way assets are recorded, valued, and reported from the start will affect compliance throughout the life of the fund.
Professional Support for SMSF Setup and Valuations
Valuations are more than a compliance exercise, they form part of responsible fund management and accurate reporting. Trustees are responsible for ensuring each valuation is based on objective, supportable data and reflects true market conditions.
At autoSMSF, we assist trustees with every stage of their SMSF setup and ongoing compliance. Our SMSF accountants help coordinate independent valuations, review supporting documentation, and ensure every asset is correctly reported in the SMSF tax return. With our support, your fund remains compliant, transparent, and accurately reflects its financial position each year.
