Assurify updates its Valuation Guidelines for SMSFs

Assurify updates its Valuation Guidelines for SMSFs

The valuation of assets in annual financial statements for Self-Managed Superannuation Funds (SMSFs) remains a critical focus area, particularly as we approach the introduction of the Division 296 tax on balances exceeding $3 million. Accurate member balances as at 30 June 2025 are essential, and the Australian Taxation Office (ATO) continues to emphasize the importance of robust valuation practices.

ATO Guidance and Sector Scrutiny

In recent months, the ATO has updated its valuation guidelines for both SMSF trustees and SMSF auditors, with revisions released in April and July 2025 respectively. These updates reflect the ATO’s ongoing efforts to educate the sector and ensure compliance with valuation standards.

Assurify’s Quality Management Review

Assurify’s own system of quality management underwent a comprehensive review by the ATO at the end of FY25. While the ATO concluded that no further investigations were necessary, they did offer constructive feedback regarding property valuations. Notably, the ATO provided no comments on Assurify’s guidelines for unlisted investments.

Key Changes to Valuation Guidelines

As a result of the ATO's updates and internal reviews, Assurify has implemented its most significant overhaul of valuation guidelines in years. The key changes include:

· For both residential and commercial properties, online and agent appraisals will need to be dated within 3 months of the end of the financial year, instead of 6 months.

· Online and agent appraisals that lack comparable sales data are no longer considered sufficient as standalone evidence.

· For commercial properties, “Method C,” which allowed valuation based solely on rental yield for two years following a formal valuation, has been removed from our guidelines. While rental yield remains a relevant factor, it must now be supported by additional evidence and considerations.

Assurify encourages clients to familiarise themselves with the updated guidelines and share them with their SMSF trustees. The revised documents are available here:

Valuation Guidelines – Property

Valuation Guidelines – Unlisted Investments & Loans

For further inquiries or clarification, clients are encouraged to contact the Assurify team directly.

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