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UPDATES

Notebook and Pen
MARKET VALUATION
SMSF Focus in 2025
ADDING CLIENTS TO PRACTICE

This FY2025 reporting, annual market valuation has been the major focus in SMSF audits. At some point I find it rather too rigid. Some of my clients wants to switch auditors as they find it cumbersome and ridiculous. Having spoken with my SMSF auditors, I can understand that this is the new norm required by ATO. SMSF regulations already have it in place. However, this time strict compliance is a must.

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SMSF trustees you need to understand and keep in mind based on diversity of investment portfolio of your fund, the following:

  1. Rental Property - a comparative report of at least 3 properties is ideal to have a good valuation of the current market value of the fund's asset. Farms though could be a bit of a challenge. You may need to get an independent valuer as very few farms or none at all within the locality has the data to compare.

  2. Commercial Property - a comparative valuation report is also required. Lease contract must be in place in arm's length rate.

  3. Listed shares - auditors need to independently check the existence as statements may be manipulated.

  4. Unlisted shares and other investment - requires independent valuation report.

  5. Crypto asset - mostly unregulated, security and existence not to mention its volatility (Although I discourage my client to invest in this, it is still there decision if they choose to.) 

  6. Gold and Silver Bullion - it is recommended to have an independent report. Auditors may ask for an audit report of its existence.

  7. Collectibles - must be insured under SMSF and must be stored in secured location. Not at home of trustees or members.

  8. In-specie contributions - auditors have no issue of it is a commercial property or listed shares as market comparison is available.

 

Ownership of these assets by the SMSF must to be proven annually. For properties, title search must be secured. The rest of the asset can be easily confirmed in the annual statements. For overseas investments, you need to give more time to gather your data.

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Trustees, I hope you are all ready for this FY2025 reporting.

The Australian Taxation Office has released a final rollout from November 13, 2023 for all entities with ABN registrations excluding sole traders. The new process requires these entities to nominate their agent through Online services for Business. Within 28 days, the agent must then add the client to their client lists. This is a deviation to the previous practice wherein the agent could simply add new clients to their client list.

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Entities affected of this change are as follows (list may change):

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  • companies including strata title bodies

  • partnerships

  • trusts

  • not-for-profits

  • joint ventures

  • cooperatives

  • self-managed super funds (SMSFs)

  • APRA-regulated superannuation funds

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For more details click on the image at the top to access the ATO link for more details.

Director Obligations & Penalties

Company directors including former will incur penalties personally for not meeting timely obligations in its taxes and superannuation. Specifically, non-payment of company's:

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  • pay as you go withholding (PAYGW)

  • goods and services tax (GST)

  • super guarantee charge (SGC)

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These penalties will take effect upon receipt of director penalty notice from ATO.

© 2025 by Dia Linn Business Services

 

Liability limited by a scheme approved under Professional Standards Legislation approved under Professional Standards Legislation

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