SMSF managers must prepare annual financial accounts and statements including a valuation of any property assets to confirm a fund has complied with ATO regulations and relevant super law. 

When it comes to valuing property assets, the two most important considerations for trustees are the valuation approach adopted and the timing of the assessment. Having objective and supportable data demonstrating market value and the valuation methodology used will enable compliant reporting.

The ATO recommends funds consider the use of a qualified independent valuer if either the:

• value of the asset represents a significant proportion of the fund’s value
• nature of the asset indicates that the valuation is likely to be complex or difficult
• occurrence of a significant event which may include macro-economic events, market volatility or a natural disaster has occurred. COVID-19 is being considered a significant event and trustees are recommended to take this into consideration when preparing their financial reports.

A common challenge encountered when providing reporting for a property asset held in an SMSF is gaining access to current and relevant supporting data to demonstrate market value comparison. The cost and timing associated with obtaining third-party advice in relation to this task is often the biggest hurdle.  At Acumentis our market-leading valuation management software contains millions of records. Our valuation team has immediate access to the most up-to-date sales information and market data allowing the efficient provision of a valuation report or property assessment.

To comply with relevant super law the market value of a property asset held in an SMSF is required to be reported by the trustee on an annual basis at 30 June each year.

There are some circumstances where property held by an SMSF must be re-valued on a more frequent basis:

• When a pension is commenced, a valuation from within 12 months prior to the commencement of the pension must be used.
• When the auditor believes that the valuation used in the accounts is either too high or too low.
• Where the SMSF has in-house assets and the auditor need to ensure that the 5% in-house asset ratio has not been exceed.

ATO guidance recommends that a trustee should consider an external assessment after a significant event which may include macro-economic events, market volatility, or a natural disaster. 

Acumentis believes that COVID-19 could be considered a significant event and recommends that trustees take this into consideration when preparing this year’s financial reports. 

Acumentis provides the detailed market data and methodology required to comply with ATO reporting and super law requirements. Our national team of registered valuers brings a wealth of expertise, local and asset-specific knowledge, and insights to the process, that may be missed if using other third-party providers 

Acumentis delivers SMSF assessments in a timely and cost-effective manner. Assessments are delivered within two business days from receipt of a compliant engagement form, that is easily completed online. 

The ATO requires a valuation undertaken by a;

• registered valuer
• professional valuation service provider
• member of a recognised professional valuation body
• person without formal valuation qualifications but who has specific experience or knowledge in a particular area

For SMSF reporting Acumentis created an innovative product during the early stages of the COVID-19 pandemic in 2020, the SMSF Restricted Property Assessment.

To complete the SMSF Restricted Property Assessment a qualified Acumentis valuer conducts a contactless remote desktop assessment that does not require physical access to the property. Thorough analysis using real-time sales and market data ensures SMSF trustees are provided an accurate and timely ATO compliant report.