Market valuations for Division 7A matters.
Independent valuations where a private company deals with its shareholders or their associates — asset transfers, distributable surplus and arm’s-length value. Evidence-led and senior-reviewed.
A Division 7A valuation sets the market value of an asset a private company transfers to a shareholder or their associate — or the company’s net assets for a distributable surplus calculation. Get that value wrong and an ordinary transaction can be taxed as a deemed dividend. Prismi prepares independent, documented Division 7A valuations across Australia.
When you need one (in plain English)
Division 7A is the rule that stops a private company handing value to its owners tax-free. If the company transfers an asset to a shareholder or a related person for less than it is really worth, the shortfall can be taxed as a dividend. A proper market valuation shows the real value — so the deal is priced correctly and the deemed-dividend risk is removed.
Common triggers
- ·A company transfers property, plant or goodwill to a shareholder or family member
- ·A shareholder buys an asset from the company
- ·Working out a company’s distributable surplus, which counts net assets at market value
- ·Unwinding or forgiving a loan that involves company assets
- ·Restructures where assets move between related entities
What the report gives you
- ·An independent market value at the relevant date
- ·The methods tested, and why the conclusion is the most supportable
- ·Clear evidence and assumptions your accountant can rely on
- ·A senior-reviewer signature and independence statement
- ·A working file retained for 10 years
Who instructs us
Most Division 7A valuations are instructed by accountants and tax advisers for their clients. We work to your instructions on what is being valued and at what date, and deliver a report you can attach to the file. We prepare the valuation only — we are not a registered tax agent and do not give tax advice.
Common questions.
Does the ATO accept a Division 7A valuation?+
No valuation is “ATO-approved” — the ATO does not pre-approve valuations. What matters is that the value is independent, properly evidenced and documented so it holds up if reviewed. That is how every Prismi report is prepared.
How fast can you turn one around?+
A focused Division 7A valuation is typically 10–14 business days. More complex matters — multiple assets or entities — take longer, and we confirm the timing and fixed fee before you commit.
Ready to discuss your engagement?
Fifteen-minute discovery call. We confirm the tier, fee and timing before you commit.
Talk to a valuer