Did your Self Managed Super Fund (SMSF) hold a property during the 2022 financial year?

If so, now is the perfect time to reach out to your real estate agent or valuer to request a property valuation, or independent appraisal, in preparation for your SMSF’s 2022 annual return and financial statements. Preparing early ensures that the valuation is relevant as at 30 June 2022, which can reduce the potential for unnecessary delays later, when your annual return and financial statements are submitted for audit.

 

 

The value of all SMSF assets must be reported every year, and property assets are no exception.

 

While valuations or independent appraisals can assist SMSF trustees and members with tracking the value and performance of property assets held within the fund, SMSF auditors and the ATO use valuations to track compliance with SMSF legislation and regulations. A valuation also provides the SMSF auditor with objective supporting data, which can aid the signing off on your SMSF’s financial statements.

 

 

Although the general rule is that property investments held by SMSFs need to be valued at least every three years, the Australian Taxation Office (ATO) valuation guidelines suggest that a new property valuation be obtained sooner if:

Due to the current state of the property market, we are now seeing SMSF auditors requesting property valuations on an annual basis.

 

With the 2022 financial year now under our belt, we recommend organising your property valuation, or independent appraisal, sooner rather than later, to ensure smoother sailing when submitting your tax documents for completion of your SMSF’s 2022 annual return and financial statements.