Artificial intelligence is starting to feature in conversations about how self-managed super fund Assets are valued and audited. This week, an SMSF industry educator told auditors there is no legal bar on using AI tools for valuation work, but warned that professional judgement must remain in charge. With the ATO sharpening its focus on market valuations for 2026–27, trustees may want to understand what this means for their fund.

What was said about AI and valuations on 22 September 2026, Smarter SMSF chief executive Aaron Dunn told the ASF Audits Technical Summit 2026 in Adelaide that nothing in the law prohibits practitioners from using AI to help generate or assess asset valuations.

However, he cautioned that over-reliance on AI could breach professional obligations. Dunn described appropriate uses as assembling, collating, cross-checking and monitoring information.

The risk arises when AI is allowed to produce a valuation on its own, or to Supply evidence that does not exist. He warned that models can confidently report a sale of an asset for a particular value that actually never happened.

Dunn also referred to a 2024 tribunal decision, Coronica, as a reminder that no tool should be used to justify a valuation that is fundamentally wrong.

How widely is AI being used?

It is important not to overstate the trend. We could not find official ATO or ASIC data showing how many SMSF auditors or administrators currently use AI in valuation work.

What is clear is that the topic is now being discussed at industry events and in trade press. For trustees, the practical question is less about technology and more about whether the valuation evidence behind their fund's accounts would stand up to scrutiny.

The ATO's March 2026 quarterly statistics show 672,805 SMSFs holding an estimated $1.06 trillion in assets, so even gradual changes in audit practice could affect a large number of funds.

What the rules require for SMSF asset values

Regulation 8.02B of the Superannuation regulations requires SMSF trustees to Value Fund assets at Market Value when preparing the fund's financial accounts and statements.

The ATO describes market value as the amount a willing buyer could reasonably be expected to pay a willing seller, dealing at arm's length, after proper Marketing and with both parties acting knowledgeably.

Under the ATO's valuation guidance, a valuation should be fair and reasonable. That means it is based on objective and supportable data, considers all relevant factors, is undertaken in good faith, follows a rational and logical method, and can be explained to a third party.

The ATO says an external valuer is not always required. However, a qualified independent valuer is needed in specific cases, such as when collectables and personal use assets are disposed of to related parties.

For real property, there is no requirement for an annual formal revaluation. The ATO does expect trustees to consider a new valuation if something has materially changed, and says online valuations or agent appraisals may be acceptable if they are backed by supportable comparable data.

Where the auditor fits in

The ATO is clear that SMSF auditors do not value assets. That Job belongs to trustees. The auditor's role is to obtain sufficient appropriate evidence that the values reported are supportable, and to document that evidence and any judgements made.

For real property, the ATO notes that a single piece of evidence will generally not be enough on its own, unless the property was recently purchased.

If an auditor cannot obtain adequate evidence, the ATO says they must consider modifying their audit report and, where the reporting criteria are met, lodging an auditor contravention report. In that situation, the auditor may report the asset's recorded value as the maximum value of the contravention.

This is why AI matters in practice. A tool that speeds up the collection of comparable sales or market data could help. A tool that produces unverifiable figures could leave both Trustee and auditor exposed.

Why valuations are under the spotlight in 2026–27

The ATO's SMSF auditor compliance focus for 2026–27, published in July 2026, lists market valuation reviews first. It says it will examine whether auditors obtained sufficient objective evidence to verify compliance with regulation 8.02B.

The ATO added that this will be especially important for 2026–27 audits, when auditors will need to check valuations of assets that may trigger a Division 296 Liability for a member.

Division 296 applies from 1 July 2026 to members with total super balances above $3 million, based on realised earnings. SMSFs may also make an optional, irrevocable election to reset asset cost bases to market value at 30 June 2026, which places further weight on accurate valuations at that date.

The ATO also reported that during 2025–26 it completed close to 200 reviews and audits of SMSF auditors and referred 39 auditors to ASIC.

What trustees may want to consider

Trustees could ask their Accountant or administrator how asset values are being determined, what data sources are used and whether any automated or AI-assisted tools are involved.

Keeping records that show how each valuation was reached, including comparable sales, appraisals or independent reports, may make the audit smoother. This may be especially relevant for property, unlisted investments and collectables, which lack a daily market price.

Where an asset is a large share of the fund, or its value is complex to determine, the ATO suggests an independent valuer may be worth considering. Depending on individual circumstances,

The bottom line

AI is entering SMSF valuation and audit work, but the rules have not changed. Trustees remain responsible for valuing assets at market value using objective, supportable evidence, and auditors must be satisfied that evidence is sufficient. Industry commentary suggests AI may help gather and check information, while professional judgement stays central. With the ATO prioritising valuation reviews in 2026–27, the quality of evidence, however it is gathered, is likely to remain a key audit focus.