Notice of Disqualification – Jesse McMahon – 17 November 2025

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to provide a regulatory framework for the supervision of the superannuation industry in Australia, addressing the need for consistent and effective oversight to protect the interests of superannuation fund members. The Act was introduced by the Parliament of Australia with the policy objective of ensuring the proper management and administration of superannuation funds to safeguard the financial well-being of contributors and beneficiaries. Recently, Jesse McMahon was disqualified under the SISA for contravening its provisions on multiple occasions, resulting in a notice of disqualification issued by Ben Kelly, a delegate of the Commissioner of Taxation. This disqualification, which takes immediate effect, prohibits McMahon from acting as a trustee, investment manager, or custodian of a superannuation entity, or as a responsible officer of a body corporate performing such roles. The decision to disqualify McMahon is publishable as a notifiable instrument in the Federal Register of Legislation, and the disqualification can potentially be revoked by the relevant authorities under certain conditions.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the superannuation industry, with a focus on trustees, investment managers, and custodians of superannuation entities. The Act is of Commonwealth jurisdiction, meaning it extends across Australia, governing conduct and transactions related to superannuation funds. Notably, the Act provides for the disqualification of individuals who contravene its provisions, as evidenced in the notice to Jesse McMahon, who has been disqualified due to multiple contraventions. The disqualification prohibits the individual from acting in certain capacities within the superannuation industry, such as being a trustee or investment manager, and failure to comply is an offence carrying a potential two-year jail sentence. The Act also allows for the revocation of disqualifications and provides a process for reconsideration of decisions by affected parties. Additionally, the Act facilitates the publication of disqualification notices as Notifiable Instruments in the Federal Register of Legislation, ensuring transparency and compliance.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) contains several key provisions that are relevant to the disqualification notice issued to Jesse McMahon. Section 126A(1) of the SISA allows for the disqualification of individuals who contravene the Act on multiple occasions, and the number of such contraventions can provide grounds for such a disqualification. This section is central to the notice issued, as it provides the legal basis for Jesse McMahon's disqualification. Under subsection 126A(6), a delegate of the Commissioner of Taxation is required to give notice of such a disqualification, which was done in this case by Ben Kelly, a delegate of the Commissioner of Taxation. The Act imposes certain obligations and requirements on the parties it governs. For instance, under section 126K, 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 or a body corporate that is a trustee, investment manager, or custodian of a superannuation entity, if they know they are disqualified. This is a significant obligation, as it restricts the activities that a disqualified person can undertake in relation to superannuation entities. Breach of the Act can lead to serious consequences. Under section 126K, the maximum penalty for committing the offence of acting as a disqualified person in relation to a superannuation entity is two years imprisonment. This indicates the seriousness with which the Act regards its provisions and the importance of compliance with its requirements. Further, under subsection 126A(5), the disqualification can be revoked either on the initiative of the Commissioner of Taxation or on a written application by the disqualified person. This provides a mechanism for a disqualified person to potentially regain their eligibility to act in certain capacities related to superannuation entities. If Jesse McMahon is affected by this decision and is not satisfied with it, he can ask the Commissioner to reconsider the decision under section 344 of the SISA. This request must be made in writing within 21 days of receiving notice of the decision and must give the reasons he thinks the decision is wrong. This provides a pathway for review and potential redress if a person believes their disqualification is unjust. Additionally, under subsection 126A(7), details of the disqualification notice will be published as a Notifiable Instrument in the Federal Register of Legislation, ensuring transparency and accountability in the disqualification process.