Commercial
Is Your Commercial Property Valuation Current?
April 7 2025
Ensure your commercial property valuation is current before 30 June. Learn when it’s required and how Kollosche can assist with EOFY compliance.
As the end of the financial year approaches, it’s a timely reminder for commercial property owners – particularly those with assets held in a Self-Managed Super Fund (SMSF) – to ensure their property valuations are up to date.
The Australian Taxation Office (ATO) requires SMSFs to report assets at market value to support accurate financial reporting. This underpins everything from member balances to investment performance, contribution caps, pension payments, transfer balance limits, and broader tax obligations. An updated market appraisal isn’t just a good idea—it’s often essential for compliance.
Outdated or inaccurate valuations can lead to reporting errors, regulatory breaches, or even financial penalties. This is particularly relevant when a commercial property is leased to a related party, where lease terms must meet arm’s length standards and comply with the sole purpose test.
When is an updated valuation required?
The ATO requires updated valuations at least every three years. However, a new valuation may be necessary sooner if there’s been a significant event. This could include the acquisition or disposal of the property, changes to tenancy arrangements, the commencement of a pension, or a notable shift in either the market or the condition of the property.
If your last valuation was before July 2022 – or if any of these circumstances apply – it may be time to request an updated appraisal.
Who should complete the valuation?
In some cases, a real estate agent’s appraisal may be sufficient. However, a formal valuation by a qualified independent valuer is recommended where the property value exceeds $1 million, there’s related-party involvement, or where significant transactions or regulatory scrutiny are expected.
To support our commercial clients in meeting their EOFY obligations, Kollosche Commercial is offering tailored property appraisals in the lead-up to 30 June. These appraisals can assist in meeting compliance requirements and ensuring your financial reporting reflects true market value.
Kollosche Commercial agent Adam Grbcic leads this initiative, drawing on his formal background in property valuation and more than a decade of experience in commercial real estate. His understanding of compliance, market movements, and asset performance positions him to provide informed and reliable assessments.
