It is the valuation process rather than who conducted it that governs the acceptability of the valuation.
The ATO have published valuation guideline for SMSFs in August 2012. As per this guideline, a market valuation can be undertaken by the following:
- Registered valuer
- Member of a recognised professional valuation body
- Director, for balance sheet purposes, or
- Person without formal valuation qualifications whose assessment is based on reasonably objective and supportable data.
Valuations undertaken by persons experienced in their field of valuation would be expected to provide more reliable values than those provided by non-experts.
According to the ATO, experts who assess market value should have specific knowledge, experience and judgement in that particular field. While professional qualifications may add weight to the valuer’s opinion, the valuer should also display personal integrity and competence. To ensure the objectivity of the report, the valuer should be independent of the interests of the party commissioning the report.
The valuation process should be adequately documented or it may not be accepted by the ATO.
Valuers may have qualifications, registrations, memberships and experience detailed as follows: