Notice of Disqualification – Elma Don Loughran - 29 July 2026

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to address the need for effective supervision of the superannuation industry, ensuring that trustees and other responsible officers act in the best interests of superannuation fund members. The Act was introduced by the Parliament of Australia and aims to maintain and enhance the integrity and efficiency of the superannuation system, thereby protecting the interests of superannuation members. The Act provides the Commissioner of Taxation with the authority to disqualify individuals who have acted in a manner that is contrary to the best interests of superannuation fund members, ensuring that the industry operates with high standards of accountability and responsibility. This disqualification process is integral to upholding the policy objectives of the SISA, which include safeguarding the financial well-being of superannuation members and maintaining public confidence in the superannuation system.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and corporate trustees involved in the management and administration of superannuation entities, and it has a national jurisdictional reach throughout Australia. Specifically, the Act addresses the conduct of responsible officers of corporate trustees who manage superannuation funds, ensuring compliance with statutory obligations and standards designed to protect the interests of superannuation fund members. The Act imposes significant penalties for breaches, including potential disqualification of responsible officers who engage in misconduct. The disqualification applies to individuals like Elma Don Loughran who were responsible officers at the time of the contraventions, prohibiting them from acting as trustees, investment managers, or custodians of superannuation entities. This disqualification is immediate and can be revoked by the Commissioner on the officer's application or the delegate's own initiative. Importantly, the Act also mandates the publication of such disqualifications as Notifiable Instruments in the Federal Register of Legislation, ensuring transparency and public awareness. However, the Act does not specify any exclusions, exemptions, or thresholds for disqualification, leaving the determination of seriousness and grounds for disqualification to the discretion of the delegate.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) includes specific provisions that address the disqualification of responsible officers of corporate trustees in the superannuation industry. Under section 126A of the SISA, an individual can be disqualified if they are a responsible officer of a corporate trustee and there have been contraventions of the SISA while they held that position, with the seriousness of these contraventions providing grounds for disqualification. The operative sections here are subsections 126A(2) and 126A(6), which respectively outline the grounds for disqualification and the requirement for the delegate of the Commissioner of Taxation to notify the disqualified person. The obligations and requirements imposed by the SISA on parties governed by this Act include the necessity for responsible officers to adhere to the provisions of the Act. If there are contraventions of the SISA by the corporate trustee, the responsible officer must ensure that these are rectified and reported appropriately. Furthermore, once a person is disqualified under the Act, they are subject to specific prohibitions from acting in certain capacities within the superannuation industry, as outlined in section 126K. There are significant consequences for breaches of the SISA. Section 126K explicitly states that it is an offence for a disqualified person to act as a trustee, investment manager, or custodian of a superannuation entity, or to be a responsible officer of a body corporate that holds these roles. The maximum penalty for this offence is two years imprisonment, highlighting the seriousness with which the legislation treats such contraventions. Additionally, under subsection 126A(5), the disqualification can be revoked either on the initiative of the Commissioner of Taxation or upon written application by the disqualified person. Finally, section 344 provides a mechanism for the Commissioner to reconsider a disqualification decision if the affected person is not satisfied with the outcome and lodges a written request within 21 days of receiving the notice of disqualification.