Written by: Sydney Property Valuers Editorial Team
Last updated: 14 July 2026

SMSF Valuation Evidence Checklist

This checklist explains the market-value evidence self-managed super fund (SMSF) trustees and their accountants should prepare to support the fund’s annual financial statements and audit. It focuses on real property held in an SMSF and the evidence an approved SMSF auditor typically expects to see.

Under the superannuation rules, SMSF assets must be reported at market value each year, and that value must be based on objective and supportable data. For property, that means more than a trustee’s estimate — the auditor needs evidence they can rely on.

This is general information only and is not financial, tax or audit advice. Trustees should confirm the fund’s specific requirements with their accountant, SMSF auditor or licensed adviser.

Who this checklist is for

• SMSF trustees holding residential or commercial property in the fund.
• SMSF accountants preparing annual financial statements.
• SMSF auditors seeking supportable market-value evidence.
• Financial advisers guiding trustees on compliance.

Why market-value evidence matters

Superannuation regulations require SMSF assets to be recorded at market value in the fund’s accounts every year, supported by objective and supportable data. An external valuation is not automatically required every single year for every property, but the value reported must be defensible. Where the evidence is thin, an auditor may qualify the audit or request an independent valuation.

When an independent valuation is strongly recommended

• There has been a significant movement in the property market or a material change to the property.
• The property was involved in a related-party transaction or acquisition.
• The property makes up a significant proportion of the fund’s total assets.
• The fund is commencing or reviewing a pension, where an accurate asset value matters.
• There are related-party lease or in-house asset considerations.
• The auditor has requested independent evidence.

The evidence checklist

Property and title details

• Full property address and certificate of title (or title search).
• Legal ownership showing the asset is held by the fund/trustee.
• Property type (residential, commercial, industrial, rural).

Purchase and ownership history

• Contract of purchase and settlement date.
• Purchase price and acquisition costs.
• Any capital improvements since purchase, with dates and cost.

Market-value evidence

• Recent comparable sales relevant to the property and date.
• A qualified valuer’s report where required or requested.
• Prior year valuations for continuity and to explain movement.
• Photographs and a description of current condition.

Related-party lease and market rent (commercial property)

• Current lease agreement, including term, rent and review mechanism.
• Independent market rent evidence confirming the lease is on arm’s-length terms.
• Comparable commercial lease evidence in the area.

Documentation for the auditor

• Rates and land tax notices.
• Any building or strata records relevant to value.
• Written valuation basis, effective date and purpose.

Instruction detail

When instructing a valuer for SMSF purposes, confirm:

• The effective date of value (usually the fund’s year end, e.g. 30 June).
• The basis of value — market value — and that the report is for SMSF/audit purposes.
• Whether market rent evidence is also required for a leased commercial property.
• Who the intended report users are (trustees, accountant, auditor).

Clear instructions help the valuer produce a report the auditor can accept without follow-up queries.

Common mistakes to avoid

• Relying on a trustee’s opinion alone. Without supporting evidence, the auditor may not accept the figure.
• Using an old valuation indefinitely. Values can drift; stale evidence weakens the audit position.
• Ignoring related-party lease terms. A commercial property leased to a related party needs market rent evidence, not just a market value.
• Confusing purchase price with current market value. The reported value must reflect the market at the reporting date.
• Leaving evidence until audit time. Gathering it during the year avoids a last-minute scramble.
• Treating one property’s evidence as covering the whole fund. Each asset needs its own support.

Frequently asked questions

Does an SMSF need an independent property valuation every year? Not always. The rules require assets to be reported at market value each year, supported by objective and supportable data — but that data doesn’t have to be a fresh external valuation every year for every property. An independent valuation is expected where the property is a significant part of the fund, where there has been a related-party transaction, or where the auditor requests one. Your accountant and auditor can confirm what the fund needs.

Who can value property held in an SMSF? Trustees can determine market value themselves if it is based on objective and supportable data. For commercial property, related-party leases, or where the value is material, a qualified valuer’s report is stronger and more likely to satisfy the auditor without queries.

What date should the valuation reflect? Usually the fund’s reporting date, commonly 30 June. Confirm the required date with your accountant before instructing the valuer, so the report matches the accounts.

Do we need market rent evidence as well as a market value? If the fund holds commercial property leased to a related party, yes. The lease must be on arm’s-length terms, and that requires independent market rent evidence — not just a market value of the property.

What happens if the auditor isn’t satisfied with the evidence? The auditor may raise a query, request an independent valuation, or in some cases qualify the audit. Preparing supportable evidence during the year — rather than at audit time — reduces this risk.

Professional use note

SMSF accountants and auditors are welcome to share this checklist with trustee clients as a general preparation resource. It helps trustees understand what supportable market-value evidence looks like and gather the right documents before year end — reducing audit queries and delays.

This checklist is general information and does not replace advice specific to the fund.

Related services and resources

• SMSF property valuations — our service page for fund-compliance reports.
• Commercial property valuations — for commercial assets held in super.
• Market rent valuations — for related-party lease evidence.
• CGT Property Valuation Guide — where tax and super overlap.

Need SMSF valuation evidence for your fund?

If you or your client needs supportable market-value evidence for an SMSF’s annual accounts or audit, our team can confirm the effective date, whether market rent evidence is required, and the right report format. Request a quote and we’ll set out what’s needed.

The information on this page is general in nature and is not legal, financial, tax or audit advice. SMSF obligations depend on the fund’s circumstances — please obtain advice specific to your fund from a licensed adviser, accountant or SMSF auditor.