Understanding Market Valuations for Your SMSF
Every financial year, self-managed super fund (SMSF) trustees are legally required to value their fund’s assets at market value.
This valuation is a core compliance obligation under regulation 8.02B of the Superannuation Industry (Supervision) Regulations 1994.
Before you lodge your SMSF annual return (SAR), your SMSF auditor must verify that all assets have been valued correctly and that the valuation basis is appropriate and well-documented.
If you fail to provide sufficient audit evidence to confirm asset values, your auditor may need to report a regulation 8.02B contravention to the Australian Taxation Office (ATO).
SMSF Trustee Responsibilities
Trustees must ensure that valuations are accurate, evidence-based, and defensible. Non-compliance with valuation rules can result in administrative penalties and additional tax obligations.
Key responsibilities for SMSF trustees:
- Value assets at market value each year: Ensure all fund assets are revalued annually, reflecting current market conditions
- Provide audit evidence: Supply objective and supportable documentation to your auditor to substantiate each valuation
- Respond to auditor requests: Provide all relevant records and evidence promptly when requested
- Avoid repetitive reporting: If asset values remain unchanged across years, confirm and document why — especially for assets without active markets.
What Counts as ‘Market Value’?
Market value refers to the amount a willing buyer could reasonably be expected to pay to acquire the asset from a willing seller, assuming both parties act knowledgeably and without compulsion.
The ATO expects trustees to use reliable sources and independent appraisals where available, particularly for real property, collectibles and unlisted investments.
How to Stay Compliant
- Review the ATO’s SMSF Valuation Guidelines for detailed instructions
- Use independent valuations for complex or non-liquid assets
- Keep detailed documentation such as agent appraisals, financial statements or sale data
- Work closely with your SMSF auditor and administrator to ensure your valuations meet regulatory standards.
Why It’s Important
Accurate, up-to-date market valuations not only demonstrate compliance but also protect trustees and members from costly tax errors and potential ATO penalties.
Keeping your SMSF valuations current is a key part of maintaining your fund’s integrity, transparency, and compliance.
Need help ensuring your SMSF asset valuations meet ATO requirements? Contact Omnis’ SMSF Specialists or your Tax Accountant for professional guidance before lodging your annual return
Rising Breaches of Regulation 8.02B
In the 2024–25 financial year, the ATO observed a significant increase in breaches of regulation 8.02B — now accounting for over 12% of all auditor-reported SMSF contraventions.
The ATO continues to use data analysis and compliance monitoring to detect risks, particularly for funds reporting the same asset values across multiple years. This may indicate that trustees are not performing the required annual market valuation.
Funds that fail to update asset valuations each year risk non-compliance, inaccurate financial reporting, and potential tax implications for both the fund and its members.
