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  • Valuing your SMSF assets

    Asset valuation is a key component in preparing meaningful self-managed super fund (SMSF) financial reports. It's one of the tasks you need to complete before you can lodge your SMSF annual return (SAR). You need to complete a valuation of your assets on 30 June for the year you're lodging.

    It's important to have the valuation(s) done early as it's advisable to have these ready by the time you appoint an auditor. It will make their job easier and it's likely to reduce the time they take to complete the audit.

    What is market value?

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

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

    What is needed for a market valuation?

    You must obtain objective and supportable data to support the market value of each fund asset.

    We've published valuation guidelines for you to follow that explain:

    • our approach to valuation
    • the terms we use
    • general valuation principles.

    In some circumstances you'll need to engage a qualified independent valuer, for example if your fund transfers a collectable or a personal use asset to a related party.

    You should also consider using a qualified independent valuer if the value of a fund asset represents a significant proportion of the fund's value or the nature of the asset indicates that the valuation is likely to be complex or difficult.

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      Last modified: 17 Nov 2021QC 67334