Notice of Disqualification – Donna Kelly - 1 October 2025

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to address issues of accountability and compliance within the superannuation industry, ensuring that trustees and responsible officers act in the best interest of superannuation fund members. This Act provides the legislative framework for the regulation of the superannuation industry, aiming to protect the interests of members by imposing certain obligations on trustees and responsible officers and by providing for the imposition of penalties for non-compliance. The SISA was introduced by the Australian Parliament to fill a critical gap in the regulation of superannuation entities, ensuring that these entities are managed with the highest standards of integrity and accountability. This legislation empowers the Commissioner of Taxation to disqualify individuals who have been responsible officers of a corporate trustee and have allowed or facilitated contraventions of the Act. The disqualification is a serious measure intended to deter non-compliance and protect the interests of superannuation fund members. As evidenced by the notice of disqualification to Donna Kelly, the Act not only seeks to penalise wrongdoing but also to ensure that those who fail to uphold the standards expected under the SISA face appropriate consequences, thereby maintaining the integrity of the superannuation system.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to trustees, responsible officers, and entities involved in the management of superannuation entities within Australia. Specifically, this act targets individuals who hold positions of responsibility within corporate trustees of superannuation entities, ensuring compliance with legislative standards to protect superannuation fund members. The jurisdiction of the act extends across the Commonwealth of Australia, thereby affecting all states and territories. The act imposes significant consequences for non-compliance, including disqualification from holding responsible positions within superannuation entities. Notably, the act provides for exclusions and exemptions as deemed appropriate by the Commissioner of Taxation, and its application can be extended or restricted through subordinate instruments. The act mandates that any disqualifications, such as the one issued to Donna Kelly, be published as a Notifiable Instrument in the Federal Register of Legislation, ensuring transparency and public notification of such significant decisions.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) contains provisions that allow for the disqualification of individuals who have contravened the Act while acting in a responsible capacity within a superannuation entity. Section 126A(2) of the SISA empowers a delegate of the Commissioner of Taxation to disqualify a person if they are satisfied that the person has contravened the Act and that the seriousness of the contraventions justifies their disqualification. This disqualification is effective from the date it is issued. In the provided notice of disqualification, Donna Kelly has been disqualified under this section due to the contraventions by the corporate trustee of one or more superannuation entities, of which she was a responsible officer at the time. The Act imposes obligations on the disqualified person, such as refraining from acting as a trustee, investment manager, or custodian of a superannuation entity, or as a responsible officer of such an entity. Section 126K of the SISA makes it an offence for a disqualified person to act in these capacities, with a maximum penalty of two years imprisonment. This section underscores the importance of adhering to the Act's provisions and the serious consequences of non-compliance. Furthermore, under section 344 of the SISA, a disqualified person has the right to request a reconsideration of the decision within 21 days of receiving the notice of disqualification. In addition to the immediate disqualification, the Act includes mechanisms for potential revocation of the disqualification. Section 126A(5) of the SISA allows for the revocation of the disqualification either at the initiative of the delegate of the Commissioner of Taxation or upon a written application by the disqualified person. This flexibility ensures that the disqualification can be reviewed and potentially lifted if circumstances change or if the disqualified person demonstrates a change in behaviour or compliance. Finally, the details of the disqualification notice are published as a Notifiable Instrument in the Federal Register of Legislation under subsection 126A(7) of the SISA, ensuring transparency and public awareness of such actions.