As market valuation becomes increasingly more important for property assets, cloud-based accounting and SMSF administration software provider Class has added certified commercial property valuations to its capabilities.
The platform will deliver accountants comprehensive market valuation reports and rental assessments designed to meet audit needs. It will ensure trustees can provide the “objective and supportable” data required by the ATO to value property held within an SMSF accurately.
The Tax Office has identified property valuations within SMSFs as a critical compliance issue, revealing last year that more than 16,500 properties had not been revalued for over three years, signalling an expectation for valuations to be current and reflect market conditions.
You’re out of free articles for this month
According to the Class Annual Benchmark Report 2025, almost 30 per cent of SMSFs on Class held direct property investments in FY25. Of these funds that held residential property, on average, it represented half of the value of the fund.
The new commercial valuation feature provides access through PropTrack to independent, certified valuers’ assessments. It also enables retrospective valuations, streamlining a previously complex and often time-consuming task.
Valuations can be especially challenging for commercial properties, where rental yields and lease agreements are crucial to the process. The use of related-party real estate agents to provide valuations is increasingly regarded as non-compliant due to concerns around independence and potential conflicts of interest.
With the proposed Division 296 tax targeting high-balance SMSFs, accurate and secure valuations are more important than ever. Outdated property values could result in incorrect tax outcomes, making prompt and reliable valuations essential.
PropTrack’s executive manager of product, Shelley Horton, said: “PropTrack valuations as a service solution provide accurate, up-to-date information, making the process smoother and more transparent.
“It gives SMSF trustees the tools to go beyond simply stating a property value by delivering a clear, well-documented process that meets ATO expectations, showing the data used, the valuation method, and any assumptions made,” she said.