By Carol Scholes-Robertson & Mary-Ellen McMillan
Updated ATO Guidance August 2025
The ATO has released Guidance for Auditors on the Ownership and separation of fund assets. This auditor guidance reinforces the importance of Verifying ownership and asset separation during SMSF audit | Australian Taxation Office.
Trustee Requirements
Under the Superannuation Industry (Supervision) Act (SISA) and Superannuation Industry (Supervision) Rules (SISR) the trustees are required to:
► Hold assets on behalf of the fund, separate from personal or business assets;
► Evidence the legal ownership of the asset by the fund; and
► Ensure fund assets are protected in the event of an action against a trustee personally.
The Auditor’s Role
The SMSF auditor’s role is to consider the evidence provided by the trustee and whether this supports that the assets are:
► Held separately on behalf of the fund; and
► Recorded in the name of the Trustee “As Trustee For” the fund (by either the individual trustees or the corporate trustee).
The Trustee’s Role
A trustee is required to:
► Support the assets of the fund are held at all times by the Trustee “As Trustee For” the fund;
► For a special purpose corporate trustee confirm that the company does not act or hold assets in any other capacity. This enables the asset to be held in the corporate trustee name only;
► Maintain a separate bank account for the SMSF; and
► Provide supporting documentation to the auditor.
Common Scenarios
A contravention of Regulation 4.09A does not occur solely because an asset of the fund is held in the name of some but not all trustees “As Trustee For” the fund. (Eg: Due to bank or investment account limitations)
Sometimes it is not possible for an asset to be held “As Trustee For” the fund. The most common examples of this are:
► Property titles where legislation prevents recording a trust relationship.
► Cryptocurrency investments; (e.g. hot wallets) where the SMSF name is unable to be attached to support the legal title.
In such cases the beneficial ownership of the asset is usually evidenced by a Declaration or Acknowledgement of Trust.
Where an asset is purchased solely in the name of the Trustee only and assets are able to be held As Trustee For the fund, this is a contravention of R.4.09A of SISR.
► Trustee Action required; Update the title to reflect the trustee holds the asset as trustee for the fund as soon as possible.
► Where this is not possible, evidence beneficial ownership with an Acknowledgement of Trust.
Corporate Trustee; enables individual directors to be added to a fund with no administration change to the name in which the fund assets are held.
Individual trustees; When new trustees are appointed or resign as trustee of the fund, the ownership documents for each fund asset needs to be updated to record the current trustees.
Where this is not updated this may not result in a contravention of Regulation 4.09A. As auditors we request the trustee update the title of the fund asset records in an Audit Management Letter.
Read the Ato Guidance
Verifying ownership and asset separation during SMSF audit | Australian Taxation Office.
If you have questions whilst gathering information to support the ownership of the asset by the fund, please don’t hesitate to reach out. We’re here to help ensure your documentation is compliant and audit ready.
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