SMSF Property Valuations 101

Navigating the compliance landscape of Self-Managed Superannuation Funds (SMSFs) can often feel like traversing a minefield, especially when it comes to valuing SMSF properties. 

While attending the SMSF Association National Conference last month, our valuers picked up on some common questions around SMSF property valuations. 

We asked Opteon's National Director of Operations - Commercial and Agribusiness, Michael McNulty, to help answer these SMSF property valuation FAQ’s for you.

Q: Why do I need a valuation for my SMSF property asset?

Michael: If you have property assets in a SMSF, or advising clients who do, then you may be required to schedule regular independent valuations of the property by a qualified valuer.

Why? Because SMSF managers must prepare annual financial accounts and statements. These accounts, must include the market value of any property asset in a SMSF.

A professional, independent valuation provides industry professionals with objective data that can be used by the SMSF auditor to sign off on the financial statements.

Q: When should I get a valuation for my SMSF property assets?

Michael: You may require the services of a valuer if the SMSF property asset makes up a large proportion of the fund, or if the property is a complex asset which requires detailed analysis.

You may also require a valuation if the value of the property has materially changed, or an event has occurred which could impact the value. This may include a shift in property market conditions or a natural disaster.

Changes to personal circumstances, such as starting a pension, may also require an updated valuation.

Q: How often do I need a valuation for my SMSF property assets?

Michael: Superannuation auditors will usually require an external valuation of any property assets in a SMSF every three years. In most instances, for the two years in between, Opteon can conduct an AMA (Analysed Market Assessment) to determine the property’s value and provide a written report.

SMSF property valuations must adhere to strict regulatory guidelines outlined by the Australian Taxation Office (ATO). Failure to comply can result in penalties and legal ramifications. The best way to ensure you are 100% compliant is to obtain a formal valuation completed by a fully qualified valuation professional, who stays abreast of the latest regulatory updates to ensure all valuations meet or exceed compliance standards.

Opteon are valuation experts in ATO and SMSF requirements.  Our tiered product offering, and up-front fee schedule guarantee you a seamless process, compliant product, at the right cost and delivered with efficient cutting-edge technology by a nationwide network of certified valuers servicing 98% of Australian postcodes.  

Opteon mitigates auditing risks by providing expert advice on both Desktop and Comprehensive valuation reports backed by robust data analysis and market insights, significantly reducing the likelihood of any discrepancies or challenges and reducing costs.

For more information about how our SMSF property valuations can help you or your clients, contact one of our specialist property valuation team members today.       


Michael McNulty

Michael McNulty
National Director Operations - Commercial & Agribusiness

0458 550 143


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