SISR regulation 4.09A and SIS Act section 52B(2)(d) require SMSF trustees to keep the fund's money and assets separate from their personal assets and from those of an employer-sponsor. The ATO says the fund needs its own bank account in the trustee's name 'as trustee for' the fund, and auditors must report material breaches.
When you are the trustee of your own super fund, the fund's money and your money can end up in the same places by accident: a shared bank account, a share holding in your own name, a property bought on a contract that never mentions the fund. The law treats that as a compliance problem, not a paperwork tidy-up. This article covers the separation rule, what the ATO expects for bank accounts and asset titles, and what an auditor must do if the rule is breached. All sources were read on 4 October 2026.
The rule
Regulation 4.09A of the Superannuation Industry (Supervision) Regulations 1994 (SISR) says a trustee of an SMSF "must keep the money and other assets of the fund separate from any money and assets, respectively" that are held by the trustee personally, or that belong to a standard employer-sponsor of the fund or an associate of one (SISR reg 4.09A, ATO Legal Database).
The same duty appears as a trustee covenant in section 52B(2)(d) of the Superannuation Industry (Supervision) Act 1993 (SIS Act), which is read into the governing rules of an SMSF if they do not already contain it. The ATO says the regulation is a prescribed operating standard that applies equally to individual and corporate trustees, and that both types of trustee can hold assets in their personal capacity for the purposes of the rule. The ATO's stated reasons are to protect fund assets if a creditor disputes ownership and to avoid costly legal action to prove who owns them.
The bank account
The ATO's page on setting up an SMSF bank account (last updated 13 April 2026) says the account must be unique to the fund. It must also:
- be in the name of the fund, with the account name reflecting the trustee structure and the connection between trustee and fund, for example "John Smith and Jane Smith as trustees for Smith Super Fund" or "Smith Super Fund Pty Ltd as trustee for Smith Super Fund"
- not be used by any other entity or individual; the ATO's example is that a tax agent's account for receiving refunds is not unique
- be used for contributions, rollovers, investment earnings and the fund's expenses and liabilities.
You do not need a separate bank account for each member, but you must keep a separate record of each member's entitlement, called a member account, showing contributions, allocated earnings and benefit payments. You must tell the ATO about the fund's bank account through a registered agent and keep those details up to date, and the ATO says to check only authorised people are signatories because third-party authorities can increase fraud risk.
How assets should be held
The ATO's guidance for approved SMSF auditors says assets should be recorded so they are distinguishable from the trustees' personal or business assets and clearly show legal ownership by the fund. Where possible they should be held in the name of the individual trustees "as trustees for" the fund, or the corporate trustee "as trustee for" the fund.
Sometimes that is not possible, for example because of state or territory laws, the purchase documents, or the system that records ownership. The ATO says this does not of itself mean the asset is not the fund's or that regulation 4.09A has been breached. Trustees must be able to show the asset is held beneficially on behalf of the fund and kept distinguishable from personal assets. Examples the ATO gives include the contract of sale executed in the name of the trustees "as trustee for" the fund together with bank transactions, or a declaration or acknowledgment of trust over the property. If an asset is not titled correctly but can be corrected, trustees should fix it as soon as possible.
What happens if the rule is breached
The ATO's auditor guidance says that where trustees fail to comply with regulation 4.09A, it is a reportable contravention. The approved SMSF auditor must tell the trustees in writing so they can fix it, must qualify or give an adverse opinion in Part B of the SMSF independent auditor's report if the contravention is material, and must report it to the ATO through an auditor contravention report where the reporting criteria are met. Separately, if an asset is not a fund asset or ownership cannot be supported by evidence, a material issue means a modified opinion in Part A of the report.
Our articles on trustee disqualification and the ATO penalty regime and on the sole purpose test cover what else can follow from compliance failures.
Practical checks for retirees running a fund
- Check the account name on your SMSF bank account and statements, and confirm no personal or business transactions run through it.
- Check the title or registration of each asset, including share holdings, and the contract for any property; look for "as trustee for".
- If you have a corporate trustee, see whether the company holds the fund's assets only in that capacity; see corporate versus individual trustees.
- Keep a member account record for each member.
- Keep the evidence on file; see our article on SMSF record-keeping.
Worked example
Illustrative only, not personal advice.
Hannah and Brian, both 67, run their SMSF with a bank account the fund opened as "Hannah Lee and Brian Lee as trustees for Lee Family Super Fund". Years ago, when they bought a parcel of listed shares, the broker registered it in their personal names. The shares have been quietly counted as fund assets since. At audit time, the auditor asks for evidence that the shares belong to the fund. Hannah and Brian cannot show any, so the auditor reports the contravention to them in writing. They arrange for the holding to be re-registered in the names of the trustees "as trustees for" the fund and keep the broker confirmation on file. The better course would have been to register it correctly at the time of purchase.
Sources
- ATO Legal Database — SISR regulation 4.09A
- ATO Legal Database — SIS Act section 52B
- ATO — Ownership and separation of fund assets (SMSF auditors)
- ATO — Set up your SMSF bank account
Key takeaways
- Regulation 4.09A requires an SMSF trustee to keep fund money and assets separate from assets held personally or by an employer-sponsor or its associates.
- The same duty is a trustee covenant in section 52B(2)(d) of the SIS Act, and it applies to both individual and corporate trustees.
- The ATO says the fund's bank account must be unique to the fund, in the name of the trustees 'as trustee for' the fund, with a member account record for each member.
- Where an asset cannot be titled 'as trustee for' the fund, the ATO expects evidence it is held beneficially for the fund, such as the contract of sale or a declaration of trust.
- A breach is a reportable contravention: auditors must notify trustees in writing, modify Part B of the audit report if material, and report to the ATO where criteria are met.
Frequently asked questions
Does an SMSF need its own bank account?
Yes. The ATO says the bank account must be unique to the fund, with a name showing the trustee structure and fund, for example 'John Smith and Jane Smith as trustees for Smith Super Fund'. It should only be used for fund transactions.
Do I need a separate bank account for each SMSF member?
No. The ATO says you do not need a separate bank account for each member, but you must keep a separate member account record of contributions, earnings allocated and benefits paid.
What if an SMSF asset is not titled in the name of the trustees 'as trustee for' the fund?
The ATO says that does not of itself mean the asset is not the fund's or that regulation 4.09A is breached, but trustees must be able to show it is held beneficially for the fund and is distinguishable from personal assets, and should correct the title if possible.
What happens if an SMSF breaches the separation rule?
It is a reportable contravention. The auditor must notify the trustees in writing, give a qualified or adverse opinion in Part B of the audit report if the contravention is material, and report to the ATO where the reporting criteria are met.