The annual requirement and the three-year misconception
Trustees must support the property’s market value for annual fund reporting. The ATO does not prescribe a blanket three-year cycle for independent property valuations. If a previous valuation is used, trustees must assess and document whether it remains suitable. Material changes can require a new report or other current evidence. See the ATO’s guide to valuing SMSF assets.
Who prepares the value, and who checks it?
For financial accounts, a qualified independent valuer is not mandatory in every case. The ATO recommends considering one where an asset is a substantial part of the fund or difficult to value. The trustee is responsible for the value; the auditor checks the supporting evidence. Starting a pension does not automatically require a full inspection report from an independent valuer.
A professional valuation can be useful when a trustee needs an explained assessment of a complex property, a historical reporting date or evidence that responds to specific auditor questions. The reason to obtain a report should be clear before it is ordered.
What evidence supports an SMSF property value?
The ATO’s guidance for SMSF auditors identifies independent valuations, relevant comparable sales, adequately supported agent appraisals and recent purchase evidence among potential sources. Generally, one unsupported figure is insufficient. A past independent valuation needs current evidence if it is being used for the current year.
| Evidence in the file | Useful questions to resolve |
|---|---|
| A previous valuation | What date did it assess? Has the property or market changed? What information supports using it now? |
| Comparable sales | Are the properties relevant to the asset’s location, size, use and condition? Are the sale details recorded? |
| An agent appraisal or online report | Does it identify the supporting sales and explain the assessed figure? |
| A commercial lease and rental records | Are the tenancy, outgoings, incentives and property details complete? Does the adviser need a separate market rent assessment? |
| Works or changes to the property | When did they occur? Are plans, photographs, invoices or approvals available? |
Prepare the brief before requesting a valuation
- Confirm the purpose. Explain whether the report is for annual accounts, a transaction, a historical date or a specific auditor request.
- Confirm the date. Use the date supplied by the fund’s accountant or adviser. Distinguish that date from the inspection and report issue dates.
- Provide the property records. Include the address, title or plan details, leases where relevant, current photographs, renovations and the previous valuation if available.
- Share the written instructions. The valuer needs to know who will use the report and what questions it must address.
- Agree the scope. Confirm the format, access needs, fee, timing and how additional questions will be handled.
Desktop, short form or full report?
The report label alone does not establish suitability for an SMSF. A desktop valuation relies on available records without attending the property. A short form valuation provides an inspection-based report in a concise format. A full valuation provides more detailed reporting for the agreed instructions. Confirm the necessary scope with the recipient and valuer.
A retrospective property valuation addresses a past date. Supplying current photographs alone may not establish the condition of the property at that date, so retain earlier records where available.
What affects an SMSF property valuation fee?
Ask for a quote that identifies the property, date, inspection arrangements and deliverables. A straightforward residential property and a multi-tenanted commercial building require different work. Historic research, travel, incomplete records, unusual improvements and additional reporting instructions can affect the fee.
Compare what each quote covers rather than using report length or a headline price as a proxy for quality. Ask whether GST, inspection, market rent assessment and responses to recipient questions are included. See our property valuation cost guide for more questions to ask.
Keep valuation and depreciation tasks separate
A market valuation establishes an opinion of value at a date. A depreciation schedule records relevant property costs and assets for the accountant’s deduction assessment. Ordering one does not automatically provide the other. Explain both needs if your adviser has requested both reports.
Frequently asked questions
Must a trustee obtain a full valuation every three years?
No blanket three-year requirement appears in the ATO guidance. Discuss the current evidence and property circumstances with your accountant and auditor each reporting year.
Can a trustee assess their own property’s value?
For financial reporting, the ATO allows valuations supported by an appropriate process and evidence without always requiring an independent valuer. This is not permission to use an unsupported estimate. Your auditor may request further evidence or an independent valuation.
Can an agent appraisal be sufficient?
It may form part of suitable evidence. A short letter without supporting sales is different from an explained assessment with relevant comparable transactions. Ask the auditor whether the complete evidence supports the required date.
Does a professional report guarantee audit acceptance?
No. The recipient assesses whether the report and other evidence address the fund’s circumstances. Share the auditor’s instructions before the valuer starts work.
Arrange the report your fund needs
Visit Propti’s SMSF property valuation service or request a quote with the property address, required date and adviser’s instructions.
This guide is general information. Your accountant, SMSF auditor or appropriately qualified adviser should confirm the requirements for your fund.
Sources
- ATO: Guide to valuing SMSF assets, updated 15 May 2026.
- ATO: Verifying the market value of fund assets, updated 2 April 2025.
Sources and further reading
- ATO: Guide to valuing SMSF assets — Evidence for fund asset values and reporting.
Arrange the right report
Explore smsf valuations with Propti. Send the property address, purpose, required date and recipient’s instructions when you request a property report quote.