Do you or your clients have Self-Managed Super Funds (SMSFs) that contain property assets?
Properties held in SMSFs are required to be valued every three years, when there are significant changes in value, or when transfers to related parties occur.
In addition, the market value of a SMSF fund (including property assets), may need to be determined when additional changes such as pension payments occur. “The market value of the account balance needs to be determined on the day the pension commences or moves into retirement phase or, for ongoing pensions, on 1 July of the financial year in which the pension is paid.” *ATO SMSF Guidelines
With rising interest rates and changes to property values across Western Australia, now is a good time to review whether your property assets may require an up-to-date valuation from an Independent Licensed Valuer.
The valuation needs to be based on objective and supportable data, undertaken in accordance with Valuation Guidelines from the ATO for SMSFs, and must include the following:
- When preparing SMSF financial accounts and statements for the auditor, an asset must be valued at its market value
- The valuation should be based on objective and supportable data
- From 1 July 2016, transfers to a related party must be made at a market price determined by an Independent Licensed Valuer
At Property Valuation & Advisory (WA), SMSF Valuations are undertaken in accordance with current valuation principles, however reporting can be kept to a minimum to save on costs, whilst ensuring compliance with ATO and Auditor requirements.
Feel free to get in touch to discuss your/your client’s valuation requirements, or to simply have a chat regarding the current value of properties held in SMSFs.
Richard Hagon
Tel : 0417 179819
Email : richard.hagon@pvawa.com.au
*More information on ATO Guidelines for SMSFs available here
