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If you have a self-managed superannuation fund (SMSF), there are certain regulations you must adhere to. One of these is the requirement to submit the current market value of assets held in the SMSF to the Australian Taxation Office (ATO) in order to prove compliancy with taxation legislation. If you hold a property in your SMSF, you will be required to submit a property valuation for SMSF purposes.
When preparing your annual SMSF financial report to be submitted to the ATO, you are required to provide the value of each asset. A valuation of SMSF assets is also needed in the following situations:
A property valuation will give you the current market value of the property in question and ensure you have the correct information for your SMSF financial reporting requirements to the ATO.
To find out more about a particular reason for SMSF property valuation, visit the ATO website.
To accurately determine the value of the property held in your SMSF, it is recommended by the ATO to choose an independent, certified property valuer. This is especially encouraged in cases when the assets’ value makes up a large portion of the overall value of the fund. As properties are significant assets, they will fall into this category in most cases.
As an independent property valuation company, all our valuers provide valuation reports are free from conflict of interest. Additionally, our valuers are certified with the Australian Property Institute (API) and have over 20 years of experience each.
It is common practice for each SMSF report to be audited by the ATO after submission. Because of this it is important to hire a qualified expert to prepare your property valuation report to ensure an accurate market value and compliance with ATO requirements and industry standards.
While SMSF financial reports must be complied annually, you do not need a new property valuation report each year. Rather, the ATO recommends that you consider renewing your independent valuation report every three years. This will ensure you are reporting the correct market value of the property, accounting for market shifts.
However, you cannot rely on the market value from a previous property valuation if there is a significant event which impacts the value. Examples of this are drastic changes in the property market condition caused by market crashes, natural disasters or global events. In these cases, you will need to get an updated property valuation for your SMSF.
If you require a property valuation for SMSF reporting, do not hesitate to reach out to our team at (08) 7009 4446 for a free quote, or for any additional information. Our expert team are more than happy to answer any questions you may have.