ValuationValuation

Valuation

20. The *market value of the fund’s assets (other than land) must be estimated at least annually.

Note: See section 2B of the Acts Interpretation Act 1901 for the meaning of ‘land’.

20.1. Subject to guideline 22, the trustee may estimate the *market value itself or arrange for a qualified valuer or another appropriate entity to make the estimate.

Note 1: It is not intended that making or arranging for an estimate of market value be onerous or expensive.

Note 2: A trustee should consider using a qualified valuer if the value of an asset represents a significant proportion of the fund’s value or if the nature of the asset means that the valuation is likely to be difficult or complex.

Note 3: The trustee may ask the Commissioner to undertake a valuation. The Commissioner may charge the trustee for undertaking a valuation.

20.2. Whoever makes the estimate must base it on reasonably objective and supportable data. The methodology and data used for an estimate should be documented in the fund’s records.

20.3. The estimate should be of the *market value as at the end of the relevant *financial year. Unless to do so would be unnecessarily onerous and expensive, the estimate should be conducted within 2 months before or after 30 June for each asset.

21. The *market value of land must be estimated at least once every 3 *financial years.

21.1. The *market value of land must be estimated by a certified and independent valuer or by the Commissioner.

21.1.1. The trustee must obtain from the valuer a written estimate of the *market value of the land. The written estimate must also include the valuation methodology and a reference to supporting materials used in making the estimate.

Note: The trustee may ask the Commissioner to undertake the valuation. The Commissioner may charge the trustee for undertaking a valuation.

21.2. The trustee may use the estimate as the *market value of the land for the next 3 *financial years.

22. If the Commissioner considers the estimate of the *market value of any asset to be unreasonable, the Commissioner may request the trustee to arrange for another valuation to be undertaken. The trustee must comply with the request.

Note: The Commissioner may seek the trustee’s agreement to undertake the valuation or the trustee may ask the Commissioner to undertake the valuation. The Commissioner may charge the trustee for undertaking a valuation.

23. Estimates must be completed before the fund is required to give to the Commissioner its *income tax return for the relevant *financial year.