A superannuation expert has indicated SMSF trustees should consider attaining sworn valuations for fund assets as at 30 June 2027 with regard to the calculation of any potential Division 296 tax liability due to the compliance benefit doing so can provide.
“Come 30 June 2027, I’m really focusing in on my valuations [because] that’s the first year the TSB (total super balance) really kicks in [for Division 296 purposes] because, remember, I’m not looking at the TSB reference value for last 30 June, I’m only looking at it for the next 30 June in 2027 because I’ve got that transitional rule,” Colonial First State head of technical services Craig Day told delegates at the recent SMSF Association Technical Summit 2026 in Sydney.
“So does that mean for all of my asset values I [should] go and get a sworn valuation? Well, you’ve always got to value [the fund assets] at market value.
“If the ATO does come at me because it thinks I’ve overvalued my asset values on 30 June 2027, or undervalued, or done some sort of dodgy deal, and I can produce a sworn valuation, it goes away very quickly.
“So that’s something to consider, you don’t necessarily have to do it, but if you want to be bullet-proof against the ATO, that would help you.”
Day warned of capacity constraints trustees might encounter if they are looking to obtain sworn asset valuations for 30 June 2027 due to other legislative changes taking effect in that same year.
“Every Australian who owns a CGT (capital gains tax) asset will have that asset deemed disposed and reapplied under the new CGT rules that start on 1 July 2027. You will be able to use the market value on your proceeds and your new cost base, or you’ll be able to utilise this formula they are going to announce,” he said.
“But if I was a taxpayer, and I am a taxpayer, I’m going to want to know both of those values.
“So I would suggest our valuers are going to be very busy next year.”
Darin Tyson-Chan
Editor
Darin is the founder and publisher of Benchmark Media, an independent publishing house whose mastheads include financialobserver, selfmanagedsuper and smstrusteenews. He has been covering the financial services space for over a decade and in this time he has worked for a variety of trade publications. Darin has also written for the Money section published in The Sydney Morning Herald and The Age.
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