The trustee of a Self Managed Superannuation Fund is required to have the assets of the fund valued in the following circumstances. Note, it is not sufficient to value the assets at their cost price it is mandatory that they are valued at their market value.
The assets of the fund needs to be valued in the following circumstances;
- when preparing the financial statements of the SMSF
- when the SMSF acquires assets from a related party
- where collectables and personal use assets are sold or transferred to a related party
- to determine the market value of the assets that support a member’s super pension
- as a result of the legislation changes coming into effect on 1 July 2017, the market value is required to determine the existing retirement income streams as they will be counted towards the transfer balance cap. Also, after 1 July 2017 to determine the value of new retirement income streams that will be counted towards the transfer balance cap.
Who can value the assets
In the case of determining the value of the assets that support a SMSF pension the valuation should be based on “objective and supportable data” by the trustee(s) of the SMSF.
The ATO in the above case, is more concerned by the valuation process rather than who conducts the valuation. In all cases the person who conducts the valuation must base their valuation on “objective and supportable data”.
Depending on the situation, a valuation may be undertaken by;
- registered valuer
- professional valuation service provider
- member of a recognised professional valuation body
- a person without formal qualifications but who has specific experience or knowledge in the particular area being valued.
Should you have any queries in relation to valuation of SMSF assets please feel free to contact
Peter Quinn by submitting an online enquiry or calling us on +61 2 9580 9166 to book an obligation free appointment.
The information in this document does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it. It is important that your personal circumstances are taken into account before making any financial decision and it is recommended that you seek assistance from your financial adviser.