NOTICE OF DISQUALIFICATION – Donald McKenzie - 29 July 2025
Superannuation Industry (Supervision) Act 1993
To:
Donald McKenzie
Unley SA 5061
I, Emma Rosenzweig, a delegate of the Commissioner of Taxation, give you notice as required by subsection 126A(6) of the Superannuation Industry (Supervision) Act 1993 (SISA), that I have disqualified you under subsection 126A(2) of the SISA.
I’ve disqualified you as I’m satisfied that the corporate trustee of one or more superannuation entities has contravened the SISA on one or more occasions, and at the time of the contraventions you were a responsible officer of the corporate trustee and the number of the contraventions provides grounds for disqualifying you.
The disqualification takes effect on the day on which it is made.
Dated: 29 July 2025
Emma Rosenzweig
Deputy Commissioner of Taxation
Per Narinder Singh
Note 1:
Under subsection 126A(7) of the SISA, details of this disqualification notice will be published as a Notifiable Instrument in the Federal Register of Legislation.
Note 2:
Under section 126K of the SISA, it is an offence for a disqualified person, who knows that he or she is a disqualified person, to be, or act as a:
› trustee, investment manager or custodian of a superannuation entity
› responsible officer or a body corporate that is a trustee, investment manager or custodian, of a superannuation entity
The maximum penalty for committing this offence is two years jail.
Note 3:
Under subsection 126A(5) of the SISA, we may revoke this disqualification on our own initiative or on your written application.
Note 4:
Under section 344 of the SISA, if you are affected by this decision and are not satisfied with it, you can ask the Commissioner to reconsider the decision. This request must be made in writing within 21 days of receiving notice of this decision and must give the reasons you think the decision is wrong.
Overview
The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to provide for the prudential supervision of the superannuation industry in Australia, aiming to protect the interests of superannuation fund members by ensuring that superannuation entities are managed responsibly. The SISA addresses the problem of inadequate oversight and regulation within the superannuation industry, which could potentially lead to financial instability and loss for members. Enacted by the Commonwealth Parliament, the policy objective of the SISA is to maintain the integrity and sustainability of the superannuation system, ensuring that trustees and responsible officers adhere to the standards prescribed by the Act. The Act empowers the Commissioner of Taxation to disqualify individuals from being involved in the management of superannuation entities if they are found to have acted in a manner that contravenes the provisions of the Act, thereby safeguarding the financial welfare of superannuation fund members.
Scope and Application
The Superannuation Industry (Supervision) Act 1993 (SISA) applies to a range of persons and entities involved in the supervision and management of superannuation entities, ensuring compliance with legislative standards. Specifically, the Act pertains to trustees, responsible officers, and corporate trustees of superannuation entities, as well as investment managers and custodians. Its reach extends nationally across Australia, covering both Commonwealth and state jurisdictions. The Act imposes stringent requirements and responsibilities on these entities to maintain the integrity and proper functioning of superannuation funds. Notably, the Act includes provisions for disqualification of individuals who are responsible officers of corporate trustees found to have contravened the Act, as evidenced in the notice of disqualification issued to Donald McKenzie. The Act also specifies penalties and offences, including potential imprisonment, for disqualified persons who continue to act in the prohibited capacities. Additionally, the Act allows for the revocation of disqualifications and provides avenues for reconsideration of decisions by the Commissioner of Taxation.
Key Provisions
The Superannuation Industry (Supervision) Act 1993 (SISA) contains provisions that address the disqualification of individuals from being involved in the management of superannuation entities. Specifically, section 126A(2) of the SISA allows for the disqualification of a responsible officer of a corporate trustee if there have been repeated contraventions of the Act by the trustee. Section 126A(6) requires that the disqualification be communicated to the affected person, as seen in the notice to Donald McKenzie. The disqualification takes effect immediately upon notification.
The Act imposes several obligations on the entities and individuals it governs. For example, section 126K of the SISA prohibits a disqualified person from acting as a trustee, investment manager, or custodian of a superannuation entity or being a responsible officer of a corporate trustee, investment manager, or custodian. This requirement ensures that individuals who have demonstrated a lack of compliance with the SISA are not entrusted with the management of superannuation funds. The obligations extend to ensuring that the disqualified person's name and details are published as a Notifiable Instrument in the Federal Register of Legislation, as mandated by subsection 126A(7) of the SISA.
Failure to comply with the disqualification provisions can lead to significant penalties. Section 126K of the SISA stipulates that it is an offence for a disqualified person to act in any capacity related to the management of a superannuation entity. The maximum penalty for this offence is two years in jail, highlighting the seriousness with which the law regards breaches of these provisions. Additionally, section 344 of the SISA provides a mechanism for the Commissioner to reconsider a decision if the affected person is dissatisfied with the disqualification, offering a potential pathway for review within 21 days of receiving the notice.