It's time to review your self-managed super fund (SMSF) compliance for the end of financial year.
Under existing superannuation laws, you are required to value investment assets held within a SMSF as part of your fund's annual return submission.
The basis of the assessment is to determine market value. See how the ATO defines 'market value'.
Why you should consider an independent valuer
The ATO provides some guidelines for assessing the market value of your assets, so why should you appoint an independant valuer to do it instead?
Your SMSF auditor needs to ensure the valuation undertaken has been done in an appropriate manner, is accurate and is based on objective and supportable data. This way you will not incur penalties from the ATO.
Even though the ATO provides assessment guidelines, in February this year they listed Not valuing SMSF's assets at market value as one of the Top 5 SMSF annual return errors when submitting SMSF annual returns. This shows that determining the value of your assets can be difficult, and a lot of people are getting their market value wrong.
This is why you should consider an independent valuer to assess your fund's assets.
At McGees, our qualified and independent valuers provide a verifiable, accurate assessment of value for your assets documented in a detailed report.
This will not only ensure compliance with your SMSF auditor and avoid penalty, but it will provide you a formal third party advice of what your assets are worth. For super funds, this is particularly important where property makes up a large percentage of the total value of your fund.