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SMSF property valuations in 2025: what trustees, accountants and auditors need to know

A concise advisory with quotable lines and the essential ATO expectations.

Key facts (ATO, 30 June 2025)

  • ~653,000 SMSFs • 1.20m members • assets around $1.05T.
  • All SMSF assets must be reported at market value at year-end (SISR reg 8.02B).
  • Auditors require objective, supportable evidence for property—more than a single data point.
“Market value, annually, with proper evidence—that is the bar for SMSF property.”
hovr SMSF Advisory

Why valuation quality matters

Property remains a significant allocation for many SMSFs. Weak evidence risks audit queries, reportable contraventions and ATO follow-up. Robust, repeatable valuations protect members and streamline year-end.

  • Who can value? Trustees, agents or professionals—if based on objective data.
  • What evidence? Sales, rentals, methodology. Not just an automated estimate.
  • How often? Annually at 30 June, plus on major events (related-party, development, rezoning).

What auditors expect

  • Comparable sales with adjustments.
  • Rental evidence or yield cross-checks.
  • Notes on condition, zoning, encumbrances.
  • Clear methodology with assumptions.
  • Independence and qualifications if third-party.
  • An audit-ready pack tying inputs to reported value.

Rules that interact with valuation

  • Related-party & in-house assets: 5% cap applies; business real property must be wholly business-use.
  • LRBAs: Align with ATO safe-harbour benchmarks and re-test values over time.
  • Heightened oversight: Expect closer scrutiny for related-party or complex deals.

Where hovr’s SMSF valuation fits

hovr’s SMSF valuation is built to the ATO’s market-value standard and audit tests, bundling sales data, methods and rationale into one audit-ready report. Evidence-rich, fast-turnaround, and national coverage.

Press quotes

  • “If it isn’t evidenced, it isn’t audit-ready.”
  • “ATO’s standard is simple: market value at 30 June, backed by objective, supportable data.”
  • “Related-party and LRBA arrangements live or die on valuation evidence.”

Quick FAQ for journalists

SMSF growth continues and auditor scrutiny of property evidence is tightening. The emphasis is on objective, multi-source documentation supporting market value at 30 June and on transaction dates.

Not always—any party can value if the evidence is objective and supportable. A professional valuation is prudent for complex assets, related-party situations, or where audit risk is higher.

hovr provides audit-ready SMSF valuation reports with comparables, rationale, and method notes, plus optional LRBA/related-party annotations.

Compliance checklist

  • Re-value at 30 June and on material events.
  • Use multiple evidence sources (sales, rentals, market context).
  • Document adjustments and methodology; keep an audit trail.
  • Confirm related-party & in-house asset settings; assess business real property status.
  • LRBA terms benchmarked (safe-harbour or commercially justified).

Data notes & methodology

hovr valuations use recent settled sales, quality-screened comparables, and rental cross-checks where relevant. Methods include direct comparison, capitalisation and (case-by-case) DCF, with assumptions stated and adjustments explained.

Key sources & citations

  • ATO SMSF statistics (latest annual update)
  • ATO: Valuation guidelines for SMSFs; SISR reg 8.02B (market value)
  • ATO: LRBAs and PCG safe-harbour guidance
  • APES 225 / professional valuation standards (context)

Need an audit-ready SMSF valuation for 30 June or a related-party transaction?

Order SMSF Valuation

Media contact

hovr Media Relations

Email: admin@hovr.com.au

Phone: +61 2 9099 1742

General information only. Obtain professional advice before acting.