Knowing what your self managed super fund (SMSF) assets are worth has always mattered. It matters even more if your balance is approaching or is over $3 million. A new super tax and updated rules mean that getting your valuations right can affect how much tax you pay.

A new tax on large super balances

The Government has introduced a new tax called Division 296. It starts on 1 July 2026, and the first measurement date is 30 June 2027.

Division 296 applies if your total super balance is above $3 million. A higher tier applies once your balance is above $10 million. Your balance is measured at the start and end of each year. This means the value of your fund’s assets at 30 June each year is important.

What this means for SMSFs

If you have an SMSF your fund must record accurate market values for all assets at 30 June each year. Listed shares are valued at their market price. Property and other unlisted assets need to be valued using supportable evidence.

A one off chance to reset cost base for Division 296

SMSFs can reset their cost base to market values at 30 June 2026 for Division 296 purposes. This is called CGT relief, and it applies for Division 296 purposes only. It can reduce future Division 296 tax by leaving out any realised capital gains upon sale that were accrued before that date.

To use this option, your fund must value all of its assets as at 30 June 2026. Demand for valuers is expected to be high, so if needed, it is worth booking early.

When do you need a professional valuer?

The Australian Taxation Office (ATO) does not expect a professional valuation every year. In many cases you can value an asset yourself using clear and supportable evidence. You should keep records that explain how you reached the value.

A professional valuer is usually needed when an asset is a large part of the fund, or when it is hard to value. Collectables such as art or jewellery sold to a related party must be valued by a qualified independent valuer.

If something changes, such as a market downturn or damage to a property, you should review whether your last valuation still holds up.

Why care matters

Getting values wrong can lead to penalties, even if you used a professional valuer. The safest approach is to keep good records and review your values regularly.

This article is general information only. It does not take account of your objectives, financial situation or needs, and it is not personal financial or taxation advice.