Leading up to the end of financial year is the time to review your self-managed super fund (SMSF) compliance.
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 appoint an independent valuer
Appointing an independent valuer to determine the correct market value of your property assets within your SMSF will save you time and, ultimately, money.
Even though the ATO provides guidelines for assessing the market value of your assets, 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.
As of February 2020 the ATO has listed not valuing SMSF’s assets at market value as one of the top 5 mistakes when submitting SMSF annual returns. This demonstrates that assessing the market value of your assets can be difficult and that inaccurate assessments are common. This reiterates the importance of obtaining a valuation from an appropriately qualified expert.
How McGees Property can help
Our qualified and independent valuers are experienced in valuing property assets within SMSF and are knowledgeable in what the ATO requires. You will also receive a verifiable, accurate assessment of actual value for your assets 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.