Warning on dodgy super asset valuations

INVESTORS and super fund members beware. The Australian Tax Office is on the lookout for dodgy asset valuations.

Portfolio

Warning on dodgy super asset valuations

INVESTORS and super fund members beware. The Australian Tax Office is on the lookout for dodgy asset valuations.

Superannuation trustees and members have been warned that the value of assets transferred into super funds will be carefully scrutinised.

The warning comes from tax commissioner Michael D'Ascenzo because of concern people are minimising the value of non-cash assets.

These assets are then transferred to super funds at the lower values and do not trigger a breach of the maximum contribution limits.

Do-it-yourself valuations that undervalue assets such as property and shares will be in the firing line this year, the ATO has warned.

"We are concerned about contributions of assets made to a fund where the market value of the asset is not properly accounted for in an attempt to avoid paying excess contributions tax,'' Mr D'Ascenzo said.

The June 2008 tax year includes the new maximum contribution limits put in place as part of the simplified superannuation laws.