Issue
Has a contravention of subsection 52(2) of the Superannuation Industry (Supervision) Act 1993 (SISA) occurred where the trustee of a self managed superannuation fund (SMSF) transfers money, other than as a contribution, from a personal bank account into a bank account held by the SMSF?
Decision
Yes. A contravention of subsection 52(2) of the SISA has occurred where the trustee of a SMSF transfers money from a personal bank account into a bank account held by the SMSF.
Facts
The trustee electronically transferred an amount from his personal bank account to the bank account for his SMSF.
The transfer was made in error.
The error occurred due to his selecting the incorrect account using a computer banking system.
The deposited amount is not a contribution to the fund.
The deposited amount was subsequently returned to the trustee's bank account.
Reasons for Decision
Section 52 of the SISA prescribes the covenants which are taken to be included in the governing rules of a regulated superannuation fund. In particular, paragraph 52(2)(d) of the SISA requires the trustees to keep the money and other assets of the entity separate from any personal money and assets of the trustees, a standard employer-sponsor, or an associate of a standard employer-sponsor, of the SMSF.
Where trustees' monies, other than contributions, are deposited in a SMSF bank account a contravention of paragraph 52(2)(d) occurs.