Clear Asset Ownership in SMSFs: Why r4.09A SISR Matters More Than Ever

News | Navjot Kaur | Released: 03/09/2025 | Read: 3 Mins

At first glance, owning assets in an SMSF may seem simple. However, the reality is that attention to detail is critical, especially with regulation 4.09A of the Superannuation Industry (Supervision) Regulations (SISR) now one of the most reported breaches to the ATO.

So, what makes r4.09A so important?

Correct Asset Titles: Getting It Right

Sole-Purpose Corporate Trustee: The Safer Option

A sole-purpose corporate trustee has: 

• Lower ASIC fees 

• Reduced legal risks in disputes 

• Stronger protection against ownership challenges 

Where a company acts as a trustee for multiple entities, asset ownership may be questioned—creating unnecessary legal uncertainty. 

Individual Trustees: A Compliance Headache

With individual trustees, every change in trustee requires updating titles on each investment. This is often costly and time-consuming. 

While trust law doesn’t require all trustee names to appear on the title, the ATO does. If registry restrictions prevent proper recording, trustees must keep signed documentation confirming the SMSF’s ownership. 

Key Compliance Steps for Trustees

• Consent & Declaration: Any new trustee must sign a written consent (s118 SIS) and complete the ATO Trustee Declaration (s104A SIS) within 21 days.
• Avoid Backdated Trust Declarations: A declaration of trust must be executed before an asset is acquired. Doing it later may trigger double stamp duty on property.
• Separate Bank Account: An SMSF must have maintain its own bank account. Sharing an account with a related trust breaches r4.09A SISR.

Common Pitfall: Related-Party Bare Trusts

Trying to “fix” incorrect ownership by using a related-party bare trust may breach the

in-house asset rules under s71 SIS — unless it’s a properly structured limited recourse borrowing arrangement

(LRBA).

Final Thoughts

Clear legal title to SMSF assets is non-negotiable. With r4.09A breaches on the rise, the ATO continues to treat this as a high-risk compliance issue. 

For trustees and professionals, the message is simple: get it right the first time—because fixing ownership errors later is often more complex, more costly, and in some cases, impossible. 

How can we help ?

A Declaration (or Acknowledgement) of Trust is only required when legislation prevents the SMSF’s name from being recorded as the beneficial owner of an asset. 

We provide legally compliant Declarations of Trust for just $275, ensuring your SMSF asset ownership meets ATO and legal requirements. 

⚖️ Join our webinar on 8th October, 2025- Actuarial Certs - ECPI & SMSF Trust Declarations

Visit www.trustdeed.com.au for more details or call us on(02) 9684 4199

Follow Us On

 You are receiving this email as you signed up for our newsletters.

 Want to change how you receive these emails?

You can Unsubscribe or Update your preferences