Notice of Disqualification – Darren Millar - 4 September 2025

Overview

The Superannuation Industry (Supervision) Act 1993 was enacted by the Australian Parliament to regulate the superannuation industry, ensuring the protection of superannuation fund members and promoting the efficient, honest and economical administration of superannuation funds. The act addresses the need for a robust regulatory framework that safeguards the interests of superannuation fund members, thereby maintaining confidence in the superannuation system. The act's policy objective is to provide for the effective supervision of superannuation entities and to protect the interests of members by ensuring that trustees and other responsible persons comply with their obligations under the act. By providing for the disqualification of individuals who have contravened the act, it serves to deter misconduct and maintain the integrity of the superannuation system.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the management and oversight of superannuation entities in Australia, particularly focusing on trustees, investment managers, custodians, and responsible officers. This Act has a national reach, affecting entities and individuals across the Commonwealth of Australia. The legislation is designed to ensure the integrity and proper management of superannuation funds, which are critical to the financial security of many Australians. The Act's jurisdiction covers corporate trustees who have contravened its provisions, and any responsible officers of these trustees who were in position at the time of the contraventions. The disqualification provisions of the Act can extend to any person found to have acted in a manner that warrants such a penalty, thereby barring them from participating in the management of superannuation entities. The Act also allows for the revocation of disqualifications under certain conditions, providing a pathway for individuals to potentially re-enter the industry following a period of disqualification. However, there are significant penalties for those who continue to act in a supervisory capacity despite being disqualified, with potential criminal sanctions including up to two years imprisonment.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) outlines various provisions governing the supervision and regulation of superannuation entities. Section 126A(2) of the Act provides the authority for disqualifying individuals from certain roles within the superannuation industry, such as trustees, investment managers, or custodians, if they are deemed to have contravened the Act in a significant manner. This section serves as the legal basis for the disqualification of Darren Millar, as evidenced by the notice issued on 4 September 2025 by Emma Rosenzweig, a delegate of the Commissioner of Taxation. The notice informs Darren Millar that he has been disqualified under subsection 126A(6) due to the contravention of the SISA by a corporate trustee of which he was a responsible officer at the time of the contraventions. Under this Act, there are specific obligations imposed on parties or entities it governs. For example, responsible officers must ensure compliance with the provisions of the SISA. If an individual is found to have been involved in significant contraventions while serving as a responsible officer, they may be subject to disqualification as per section 126A(2). Additionally, section 126K imposes a duty on disqualified persons to refrain from acting in any capacity that would involve managing or overseeing superannuation entities. Failure to adhere to these obligations can result in serious consequences, including disqualification and legal penalties. The Act also delineates the consequences of breaching its provisions. Notably, section 126K sets out that it is an offence for a disqualified person to act in any capacity involving the management of superannuation entities. The maximum penalty for committing this offence is a two-year jail term, underscoring the seriousness of non-compliance with the Act’s stipulations. Furthermore, the notice of disqualification, as outlined in subsection 126A(7), mandates that the details of the disqualification be published as a notifiable instrument in the Federal Register of Legislation, ensuring transparency and accountability within the industry. Finally, the Act provides mechanisms for review and potential revocation of disqualification. According to subsection 126A(5) of the SISA, the disqualification can be revoked either on the initiative of the Commissioner or upon a written application by the disqualified person. This offers a pathway for individuals to seek relief if they believe the disqualification was unjust. Additionally, section 344 allows for a reconsideration request to be made by the Commissioner within 21 days of receiving notice of the decision, providing an opportunity for affected parties to contest the decision if they believe it to be incorrect.