Do you own a rental property in your SMSF?

To ensure you limit your exposure for closer scrutiny by the ATO, its important to follow the fundamentals in your property asset valuations. Each year, the assets of your SMSF must be valued at ‘market value’ and the evidence provided to your auditor.

Trustees must value assets based on “objective and supportable data.”

  • Commercial and residential real estate does not need to be valued by an independent valuer but this should be considered where there have been significant changes to the property or the market, the property represents a significant proportion of the fund’s value, or it is unique or difficult to value.
  • If the trustees are completing the valuation themselves, ensure that you document the valuation date as 30 June 2024 and you include the characteristics that have contributed to the valuation (the type of property (house, unit, etc), its age, features (land size, number of bedrooms, pool, garage size, etc), location attributes (close to transport, schools, shops, views, etc.) The trustees should also access at least three sources of credible comparative sales data, either on recently sold similar properties in the same suburb or from a property data service.
  • For commercial property, net income yields are also required to support the valuation. If the tenants are related parties, for example your business leases a commercial property owned by your SMSF, evidence that a comparative commercial (including residential) rent is being paid and the rent is in-line with the market will be required.

We want to help you achieve the best result for you and your SMSF. If you would like further clarification or advice please contact us.



Naomi Aspromourgos