Key Highlights

•  Valuing assets is the trustee's responsibility, and the auditor checks that assets are valued correctly but does not determine market value.

•  An independent valuer is legally required only when collectables or personal use assets are disposed of to a related party, and is otherwise recommended where an asset is significant or complex.

•  Values at 30 June 2026 feed into total super balances, contribution cap eligibility and the Division 296 cost-base election.

Every year, SMSF trustees must report the fund's assets at market value. For listed shares and cash, that is straightforward. For property, unlisted unit trusts, private company shares and other assets without a quoted price, it requires judgment and evidence. This year, the stakes are higher than usual.

The ATO's general valuation principles for SMSFs were last updated on 15 May 2026, and values at 30 June 2026 now feed into more than the annual accounts. They also underpin total super balances, contribution cap eligibility and, for members with large balances, the Division 296 regime that started on 1 July 2026.

What market value means

The ATO's guidance 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 a knowledgeable, prudent seller. A valuation is expected to be fair and reasonable: based on objective and supportable data, considering all relevant factors, made in good faith, following a rational process and capable of being explained to a third party.

Valuing assets is the trustee's responsibility. The ATO says the auditor does not value assets or determine market value, but will check that assets are valued correctly, may ask how a valuation was reached and may seek an independent valuation during the audit.

When an independent valuer is needed

The ATO says a qualified independent valuer is legally required only in one situation: when collectables or personal use assets are disposed of to a related party, subject to transitional dates for assets acquired before 1 July 2011.

In other cases an independent valuation is recommended rather than required, particularly where an asset is a significant proportion of the fund or its value is likely to be complex or difficult to determine. Independent valuations do not need to be repeated every year, but if trustees rely on an earlier one they should assess whether it is still appropriate and record their reasoning.

Real property

For property, the ATO says an annual external valuation is not required. However, a new valuation may be prudent if the existing one is likely to be materially inaccurate or a significant event has occurred. The guidance says relying on a single source of evidence is generally insufficient. Relevant evidence includes comparable sales, a recent arm's length purchase where nothing material has changed, an independent agent's appraisal, improvements made since the last valuation and, for commercial property with unrelated tenants, net income yields. If an online report or agent's appraisal is the only evidence, it should list the comparable sales it relied on.

Significant events can include natural disasters, macroeconomic shocks, market volatility or a change in the asset's character. In those cases trustees should obtain a new valuation or gather alternative evidence.

Why 30 June 2026 deserves extra care

Market values at 30 June flow into each member's total super balance, which the ATO uses for several tests. For 2026–27, the ATO's guidance shows that a total super balance of $2.1 million or more at 30 June 2026 reduces a member's non-concessional contributions cap to nil, and lower balance bands limit access to the bring-forward rule.

For members with larger balances, Division 296 adds another layer. Professional commentary in October 2026 indicates that the cost-base adjustment election available under the new regime relates to asset values at 30 June 2026. A well-supported valuation at that date could matter for years.

Practical steps for trustees

  • Identify which assets lack a quoted market price and decide how each will be valued.
  • For property, gather at least two independent sources of evidence and keep copies.
  • For unlisted trusts and companies, document the data, method and assumptions used.
  • Record why any earlier independent valuation is still being relied on.
  • Provide valuation evidence to the auditor early, rather than waiting to be asked.

Hypothetical example

A hypothetical fund owns a regional commercial warehouse last independently valued three years ago. A new road bypass opened during 2025–26, diverting traffic from the area. The trustees treat the bypass as a potentially significant event, obtain a fresh appraisal with comparable sales and record their reasoning, rather than rolling forward the old figure.

Takeaway

Good valuation evidence protects trustees, members and auditors alike. With 30 June 2026 values feeding into contribution caps and Division 296, trustees should make sure every hard-to-value asset is supported by objective, documented and explainable evidence.