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.
A Division 7A valuation sets the arm’s-length 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. It matters because Division 7A (ITAA 1936) treats value passed from a private company to its owners for less than market value as a deemed unfranked dividend; a properly evidenced valuation prices the dealing correctly and removes that risk. Oliver Group prepares independent, signed Division 7A valuations, typically delivered in 10–14 business days and prepared with ATO market valuation guidance in mind. Oliver Group is an independent valuer, not a registered tax agent, and does not give tax advice — your accountant confirms the Division 7A treatment.
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 signed 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 Oliver Group 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.
What is a Division 7A valuation?+
It is an independent market valuation of an asset a private company transfers to a shareholder or their associate, or of the company’s net assets for a distributable surplus calculation. Division 7A stops a private company handing value to its owners tax-free, so an accurate market value shows the transaction was priced correctly and removes the deemed-dividend risk.
When do you need a Division 7A valuation?+
Common triggers include a company transferring property, plant or goodwill to a shareholder or family member; a shareholder buying an asset from the company; working out a company’s distributable surplus; unwinding or forgiving a loan involving company assets; and restructures where assets move between related entities.
Is distributable surplus based on market value?+
Yes. A distributable surplus calculation counts the company’s net assets at market value, which is why an independent valuation of those assets is often required. Oliver Group provides that market valuation; your accountant applies it in the Division 7A calculation.
Talk to a valuer
Tell us what you need valued.
A fifteen-minute call confirms the tier, the fixed fee and the delivery date — before you commit to anything.
0433 475 518Mon–Fri, 9am–5:30pm AEST
Fixed fees from $1,495 + GST · 10–35 business days