From 30 June 2025, SMSF trustees must ensure that all property assets are valued at their true market value at year-end. A change now central to fund compliance and tax planning. The ATO’s updated guidance, released in April and July 2025, reinforces the need for valuations to be objective, supportable, and well-documented.
Under SIS Regulation 8.02B, assets must be valued annually, and any property acquired or sold — especially involving related parties — requires a current market valuation. The ATO now flags funds that report unchanged property values for multiple years; in fact, over 16,500 SMSFs were identified with static valuations, drawing increased scrutiny. This heightened oversight reflects the regulator’s focus on ensuring valuations align with real market conditions rather than arbitrary or outdated figures. Trustees who fail to update valuations risk compliance breaches, audit issues, and potential tax penalties if asset values are found to be misstated.
Auditors are under more pressure, too: ASIC disciplined 17 SMSF auditors in late 2024 for non-compliance, emphasizing that valuation shortcuts or poor documentation may result in audit qualifications or contravention reports.
In this evolving landscape, annual, well-substantiated property valuations are no longer a formality—they’re now a cornerstone of SMSF compliance and strategic planning.
To stay informed, contact us to assist you with any compliance concerns.