Grazing, cropping, dairy, horticulture and mixed farms. Market value and market rent in one desktop report, $550 inc. GST, delivered within 48 hours.
Farmland used in a primary production business is business real property, so the fund can buy it from a member or related party at market value and lease it back to the family farming business at market rent. A homestead does not stop the land qualifying, provided the dwelling and its private area sit on no more than 2 hectares and the main use of the whole property is farming. The auditor then checks two things every year: that the farm is carried at market value, and that the rent is at arm’s length. One rural valuation report with a rental assessment answers both.
The layout is the same as our commercial property valuation report: the figure, the date, the method and the evidence are on the first page, ready for the auditor.
Rural values are driven by land class and soil, rainfall and water security, carrying capacity, improvements (homestead, sheds, yards, fencing and irrigation), access, and distance to service towns and markets. Direct comparison is the primary method: recent farm sales in the district, analysed on a rate per hectare and adjusted for the differences that matter. Where the farm is leased, the rent is tested against market evidence as a cross-check on the value.
Farm sales are thinner than town sales, so the evidence often reaches further in distance and time, and the report explains each adjustment. Automated online estimates are built for suburban houses and do not value farmland reliably. Operations with significant fixed plant, such as intensive animal facilities or processing sheds, can need a physical inspection. We tell you before you pay if a desktop report is not the right tool for the property.
Regulation 8.02B of the Superannuation Industry (Supervision) Regulations 1994 (SISR) requires fund assets to be valued at market value for the accounts. The ATO’s valuation guidelines ask for objective and supportable data, and recommend a qualified independent valuer where an asset is a significant proportion of the fund’s value or the valuation is likely to be complex. A farm is usually both. The auditor also has to be satisfied that the lease to the family farming entity is on market terms, which is what the rental assessment in the report is for; our guide to related party leases covers the test.
An external valuation is not needed every year. The ATO says one may be prudent where the value may have changed materially or a significant event has occurred, such as new improvements, a subdivision or a change in water holdings. Our valuation frequency guide sets out what auditors accept year to year.
Farms held for decades often carry large gains. Funds making the Division 296 cost base reset election need the market value of every asset at 30 June 2026, and we can value the farm at that date; the Division 296 calculator shows why the figure matters.
$550 inc. GST for the desktop market valuation and rental assessment of a farm or rural property anywhere in Australia. Where several financial years are needed, three-year cover is $1,200 inc. GST. Order online with the property address, the valuation date and a copy of the lease or the current rent. The report arrives by email within 48 hours.
For a farm, also send a short description of land use (cropping, grazing, irrigated, bush), the water entitlements and whether they sit on the title or are held separately, the homestead and any other dwellings, and the main improvements. Your accountant can supply this as a statement of facts.
$550 inc. GST. Market value and market rent in one report, delivered within 48 hours, ready to hand to the auditor.
Order a rural valuationFor most grazing, cropping and mixed farms, yes. The value is built from documented comparable sales, which is the evidence the auditor needs. Operations with significant fixed plant may need more; we tell you at the outset.
Yes. Every rural report includes a rental assessment at the same date, so the auditor can test the lease to the family farming entity against market.
Yes. The ATO accepts that business real property can include a dwelling used for private purposes, provided it sits on no more than 2 hectares and the main use of the whole property is not private. Who can live in the homestead is a separate question for your adviser. The report describes the dwelling and the area it occupies.
The report identifies the water entitlements and states whether the figure includes them. Entitlements held separately from the land title are a separate fund asset, so tell us how yours are held when you order.
Every year at market value for the accounts, but not necessarily by an external valuer every year. Many auditors accept an independent valuation every three years with supporting evidence in between, unless something material has changed.
Yes. We prepare valuations at a past date. The figure is the market value at 30 June 2026, supported by sales evidence available around that date.
$550 inc. GST. Market value and market rent in one report, delivered within 48 hours, ready to hand to the auditor.
Order a rural valuationReports are prepared by Mike Wilczynski, Chartered Accountant and Certified Property Valuer certified by the Australian Valuers Institute, Registered Tax Agent TPB 17532009. Mike combines property valuation with hands-on SMSF accounting experience; he advises on the same compliance, tax and reporting issues that drive the need for an accurate property valuation. A regular presenter at the SMSF Association National Conference, Mike works with SMSF trustees, Chartered Accountants, auditors and financial advisers across Australia to deliver reports that meet annual reporting, audit and compliance requirements.
Background reading for farming families holding land in the fund.
