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What is a SMSF Valuation?
If you own property within a Self-Managed-Super-Fund (SMSF), the SMSF manager or trustee(s) is required to provide the ATO with a compliant SMSF property valuation for financial reporting and auditing purposes.
A SMSF property valuation is a formal assessment of the market value or market rent of a property held within a superannuation fund.
At Guardian, we work directly with SMSF owners or trustees to provide accurate and compliant property valuations for SMSF reporting across all asset types - Residential, Commercial & Industrial.
Australian Taxation Office SMSF Guidelines
The ATO requires an approved SMSF auditor to obtain a qualified independent valuation when a property represents a significant portion of the fund’s total value, or if the asset is complex in nature — especially in the case of commercial or industrial properties.
To stay compliant and avoid audit issues, most SMSF auditors recommend getting your property valued at least every three years.
Though there are situations where SMSF property must be revalued more frequently than every three years:
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When a pension is opened — the property must be valued within 12 months to the commencement of the pension
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When the auditor questions the accuracy of the value used in the fund’s accounts (i.e. either too high or too low)
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The fund holds in-house assets, and a new valuation is required to confirm the 5% in-house asset ratio hasn’t been exceeded
ATO Penalties for SMSF Non-Compliance
It is common for SMSFs to lease commercial property to related parties under non-arm’s length arrangements.
However, it is a mandatory requirement that these leases are structured on commercial terms and reflect current market conditions. Failure to demonstrate fair market value can lead to serious compliance breaches if the fund is deemed non-compliant. In such cases, the ATO may issue penalties, enforce rectification orders, or even tax the fund at a higher marginal rate. Trustees can also face disqualification and pecuniary penalties for breaching Sector regulatory requirements.
Given the risks, SMSF auditors strongly prefer valuations provided by independent, qualified professionals. A detailed, market-based valuation from a certified practicing valuer carries more weight than a trustee’s internal estimate — and helps safeguard your fund from non-compliance.
Why Choose Guardian Property Valuers?
Guardian is committed to acting in the best interests of our clients.
We’ve got your back when it comes to managing your SMSF assets. Our ATO compliant valuations ensure your property is reported accurately — protecting your fund and your future.
FCFCOA Compliant
Mario had purchased an investment property from his father, Eli.
The Revenue Office required Mario to engage a property valuer because the transaction occurred between related parties.
Mario's conveyancer (being a committed referral partner of ours) required an urgent Stamp Duty valuation as the sale contract was nearing its settlement date.
With no hassle, Guardian was able to turnaround the Stamp Duty valuation on the same day in a seamless fashion.
As a result, Mario was satisfied with our Stamp Duty assessment and his conveyancer was able to commit to Mario's needs in a timely fashion.
