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  • Value the fund's assets

    You need to value the assets of the fund at their market value for the purpose of preparing your fund's accounts, statements and the SMSF annual return each income year.

    Market value is the amount that a willing buyer of the asset could reasonably be expected to pay to acquire the asset from a willing seller if all the following assumptions were made:

    • that the buyer and the seller dealt with each other at arm's length in relation to the sale
    • that the sale occurred after proper marketing of the asset
    • that the buyer and the seller acted knowledgeably and prudently in relation to the sale.

    Apart from preparing your annual accounts and statements and lodging the SMSF annual return you will also need to value fund assets:

    • when reporting certain events for the purposes of the transfer balance cap, as required, in a transfer balance account report
    • if your fund has investment dealings with, or sells assets to or purchases assets from, a related party
    • if you need to determine the percentage of in-house assets in your fund
    • on the commencement day of a pension
    • if your fund transfers a collectable or personal use asset to a related party – in this case the valuation must be done by a qualified independent valuer.

    See also:

    Last modified: 11 Mar 2021QC 42472