Notice of Disqualification – Justin Cheetham- 25 June 2025

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to address the need for effective oversight and regulation of the superannuation industry in Australia. The Act was introduced by the Australian Parliament to ensure that superannuation entities operate within a robust regulatory framework, thereby protecting the interests of superannuation fund members. The policy objective of the SISA is to maintain the integrity and stability of the superannuation system by ensuring compliance with regulatory standards and by imposing penalties for non-compliance. One of the key provisions of the Act includes the ability to disqualify responsible officers of corporate trustees who have contravened the Act, as evidenced by the disqualification notice issued to Justin Cheetham on 25 June 2025 by a delegate of the Commissioner of Taxation. The disqualification serves as a deterrent and a corrective measure to uphold the standards expected within the superannuation industry.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 applies to responsible officers of corporate trustees who manage superannuation entities, and it operates within the Commonwealth jurisdiction. The Act’s primary aim is to ensure the integrity and proper management of superannuation funds by imposing various duties and standards of conduct on those involved. Specifically, under section 126A, an officer can be disqualified if they have been involved in repeated breaches of the Act while serving as a responsible officer. This disqualification prevents them from acting as a trustee, investment manager, or custodian of a superannuation entity, as outlined in section 126K, with a potential penalty of up to two years in jail for contravening this prohibition. The Act’s application is extensive, covering any individual or entity managing superannuation funds within Australia, but it does not extend to state-regulated funds or entities. Disqualifications under the Act are significant and are communicated as Notifiable Instruments in the Federal Register of Legislation, as indicated by subsection 126A(7). The Act allows for the possibility of revocation of a disqualification under subsection 126A(5), either at the initiative of the Commissioner or upon application by the disqualified person. Additionally, section 344 provides a mechanism for the Commissioner to reconsider a decision if the affected party submits a written request within 21 days of receiving the notice of disqualification, outlining the reasons for dissatisfaction with the decision.

Key Provisions

The key provisions of the Superannuation Industry (Supervision) Act 1993 (SISA) in the context of the disqualification of Justin Cheetham include sections 126A(2), 126A(6), and 126A(7). Section 126A(2) empowers a delegate of the Commissioner of Taxation to disqualify an individual from being involved with superannuation entities if they have acted as a responsible officer of a corporate trustee that has contravened the SISA. This decision is communicated through a notice under section 126A(6), which was issued to Justin Cheetham on 25 June 2025. The details of this disqualification are to be published as a Notifiable Instrument in the Federal Register of Legislation under section 126A(7). The SISA imposes specific obligations on individuals and entities within the superannuation industry. Responsible officers of corporate trustees must ensure compliance with the SISA and avoid any actions that could lead to contraventions. For Justin Cheetham, who has been disqualified, this includes refraining from acting or being involved as a trustee, investment manager, or custodian of a superannuation entity. The Act also mandates that any disqualification decisions be communicated in writing to the affected individual, as was done in this case with the notice to Justin Cheetham. The Act establishes serious consequences for breaches of its provisions, particularly concerning disqualification. Under section 126K of the SISA, it is an offence for a disqualified person to act or be involved as a trustee, investment manager, or custodian of a superannuation entity if they know they are disqualified. The maximum penalty for this offence is two years imprisonment. This section ensures that disqualifications are taken seriously and that there are legal repercussions for ignoring them. Furthermore, the SISA provides mechanisms for the review and potential revocation of disqualifications. Under subsection 126A(5), a disqualification may be revoked either on the initiative of the Commissioner or upon the written application of the disqualified person. This allows for a degree of flexibility and fairness in the process, providing a potential pathway for Justin Cheetham to seek revocation of his disqualification if he wishes to do so. Additionally, section 344 of the SISA enables individuals to request the Commissioner to reconsider a decision within 21 days of receiving notice, offering another avenue for review if the initial decision is contested.