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Tick Tock... June 30th Is Near! Are Your SMSF Asset Valuations Audit-Ready?
 
 
   

Tick Tock! Is Your SMSF Audit-Ready for 30 June?

News | Navjot Kaur | Released: 11/06/2025 | Read: 3 Mins
   
   

With 30 June fast approaching, now is the time to ensure your SMSF is compliant with ATO requirements for asset valuations. Trustees are legally required to prepare full financial statements with up-to-date market values of all fund assets as at 30 June each year. And while this requirement isn’t new, it still creates confusion and compliance risks for many.

 

In line with ATO guidelines, SMSF trustees must report current market values for all fund assets in their year-end statements. This legal requirement means valuations must be updated every year – there is no “3-year rule” for property revaluations. The ATO now flags funds where reported asset values do not change year-on-year. Accountants should therefore plan ahead for the June 30 valuation date to ensure audits go smoothly and compliance issues are avoided.
   

No 3-Year Rule: Annual Asset Valuations Now Under the ATO Spotlight

   

Regulation 8.02B of the Superannuation Industry (Supervision) Regulations 1994 requires every SMSF asset to be valued at market value when preparing the fund’s financial statements each year.

 

These valuations must be based on objective and supportable data, such as recent sales comparisons, independent appraisals, or income-yield analysis.

 

While the ATO once indicated that property valuations might only need formal updating every three years, this was never law—just guidance. The so-called “3-year rule” is a myth.

 

The ATO now expects annual updates for all asset values, particularly where values are likely to change. Funds reporting the same figures for multiple years risk ATO review or audit queries. Auditors require clear, documented evidence for each valuation. Original purchase prices or vague estimates no longer meet compliance standards.

 

If your SMSF hasn’t updated property or other asset values in recent years, now’s the time—before 30 June—to ensure your fund is audit-ready.
   
   

Auditors Are Raising the Bar: Are Your Asset Valuations Up to Standard?

Auditors now expect trustees to provide objective, verifiable evidence to support the valuation of every asset in the SMSF—regardless of size. Here’s what that means in practice:

 

For Real Property:

  • Recent sales data for comparable properties

  • Independent appraisals from licensed real estate agents

  • Documentation of renovations or improvements affecting value

  • Capitalization rate analysis for commercial properties with arm’s-length tenants

 

For Unlisted Shares or Units in Unlisted Trusts:

  • A breakdown of underlying asset values (e.g., property, equities, managed funds)

  • Independent expert valuations, especially when assets aren’t liquid or publicly traded

  • Records of recent arm’s-length transactions, if any

  • A clear methodology and explanation of assumptions used in the valuation

 

Important: Relying on book value, original purchase price, or outdated financials is no longer acceptable.

 

Even minor or seemingly low-value assets must be appropriately valued. Auditors will question any gaps—and the ATO is taking a firmer stance, especially now that an SMSF’s total value affects key thresholds like contribution caps, pension commencement, and transfer balance limits.

 

Bottom line: No asset is too small to ignore. If it’s in the fund, it must be properly valued—and backed by credible evidence.
   

Timing is Everything!
   

Asset valuations must be based on the market value as at 30 June, not the date when the financial statements are prepared or finalized. This distinction is critical, as using outdated or post-year-end valuations can lead to non-compliance with Regulation 8.02B of the SIS Regulations.

 

To ensure accuracy and audit readiness, trustees should plan ahead and collect valuation evidence as soon as possible after year-end. This includes obtaining property appraisals, market comparisons, or other supporting documentation that reflects fair market value as at 30 June. Delays in gathering this information can complicate the audit process and increase the risk of queries or adjustments.

 

Furthermore, if any significant fund events occurred during the year—such as the commencement of an account-based pension, an in-specie contribution, or a related-party transaction—you must also provide evidence of the asset’s value at the date of the event, not just at year-end. These events have regulatory and tax implications, and accurate valuations are essential for ensuring compliance and proper reporting.

 

In short, timely and well-documented valuations not only help meet ATO expectations but also make the audit process smoother, faster, and less prone to issues.
   

Staying Compliant: Key Steps for Accurate SMSF Asset Valuations

   

To ensure your SMSF meets ATO and audit expectations, follow these best-practice steps:

  1. Use 30 June as Your Primary Valuation Date
    Always value fund assets as at 30 June. Gather supporting evidence—such as reports, sales data, or appraisals—as soon after year-end as possible to avoid delays during audit.

  2. Utilize Reliable Valuation Tools
    Where appropriate, use independent valuation services or online property data tools. 

  3. Engage Your Auditor or Accountant Early
    Before audit season begins, consult with your SMSF auditor or accountant to determine which assets may require formal valuations or detailed support—particularly for unlisted investments, related-party assets, or complex holdings.

  4. Revalue for Significant Fund Events
    If a significant event—such as the commencement of a pension or an in-specie contribution—occurs during the year, asset values must be updated as at the date of the event. If values remain unchanged between that date and 30 June, you must provide evidence to support the consistency.
   
   

Asset Valuation Is No Longer a Box-Ticking Exercise

   

Accurate asset valuation is now a critical pillar of SMSF compliance, strategy, and member reporting. It's no longer just a formality—it directly impacts contribution caps, pension calculations, and audit outcomes.

 

Trustees who take a proactive approach, supported by credible documentation and independent valuation evidence, can avoid costly delays, minimize audit queries, and uphold strong fund governance.

 

If you're unsure what level of evidence is needed for your fund’s assets, speak with your SMSF adviser or auditor today. With 30 June fast approaching, timely action is essential to meet your fund’s obligations with confidence and accuracy.
   

Accurate Property Valuations Are Essential—And Easier Than You Think

   

At TrustDeed, we understand the vital role that accurate property valuations play in making informed decisions and staying compliant with Regulation 8.02B of the SIS Regulations. That’s why we’ve partnered with reliable and experienced valuation providers to deliver affordable, fast, and ATO-compliant property valuation reports.

 

Our Valuation Services Include:

 

  1. Residential Property Valuation – only $22 (incl. GST)

    • Instantly generated online

    • Based on comparable market sales

    • Suitable for SMSF financial statements and audits

    • Backed by independent property data and valuation algorithms

  2. Commercial Property Valuation – Quote-based service

    • Formal valuation reports by certified valuers

    • Suitable for properties leased to related or unrelated parties

    • Includes yield analysis, cap rate assessment, and property-specific factors

    • Turnaround typically within 3–5 business days

Whether you need to value a residential investment property held by your SMSF or a commercial premise leased to a related entity, our valuation solutions are tailored to meet both regulatory expectations and audit scrutiny.

 

Don’t leave it to the last minute.
 

Order your property valuation through TrustDeed today and ensure your fund’s reporting is accurate, defensible, and audit-ready.

 

Click below to order yours:

👉 Residential Valuation – Get Instant Report for $22
👉 Commercial Valuation – Request a Quote
   
   

Visit www.trustdeed.com.au for more details or call us on(02) 9684 4199
   

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