Notice of Disqualification – Michael Clausing - 30 July 2026

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to ensure the proper administration and supervision of superannuation entities in Australia. The legislation was introduced to address the need for regulatory oversight and accountability within the superannuation industry, thereby protecting the interests of superannuation fund members. The Act is overseen by the Australian Parliament, with its primary policy objective being to safeguard the financial well-being of superannuation fund members by enforcing compliance and penalising misconduct among industry participants. In this context, the Act empowers the Commissioner of Taxation to disqualify individuals from holding responsible positions within superannuation entities if they are found to have contravened the Act, thereby ensuring that only qualified and trustworthy individuals manage these funds.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the administration and management of superannuation entities, which include superannuation funds, trustees, investment managers, and custodians. The act extends across the Commonwealth of Australia and is applicable to any contraventions of the SISA that occur within its jurisdiction. The act specifically targets responsible officers of corporate trustees who are found to have contravened the SISA on multiple occasions, leading to their disqualification. This notice of disqualification, as evidenced by the case of Michael Clausing, reflects the serious nature of such contraventions and the consequences that follow, including the potential for criminal penalties if a disqualified person continues to act in their prohibited capacity. Furthermore, the act allows for the disqualification to be revoked under certain conditions and provides avenues for reconsideration of the decision if the affected party believes the disqualification to be unjust.

Key Provisions

The primary operative sections of the Superannuation Industry (Supervision) Act 1993 (SISA) in this context are subsection 126A(6) and subsection 126A(2). Section 126A(6) mandates that a notice of disqualification must be given to the person being disqualified, which includes details of the disqualification. Section 126A(2) provides the authority to disqualify a person who has been a responsible officer of a corporate trustee and has been involved in contraventions of the SISA that warrant such disqualification. The Act imposes several obligations on the parties it governs, primarily ensuring that responsible officers of corporate trustees adhere to the legislative requirements of the SISA. This includes maintaining compliance with the provisions to avoid actions that could lead to disqualification. The Act also mandates that any contraventions of the SISA by a corporate trustee must be reported and addressed appropriately, with responsible officers being held accountable for their actions. Furthermore, the Act includes provisions for the consequences of breach. Section 126K of the SISA outlines 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 or part of a body corporate that is a trustee, investment manager, or custodian, if they know they are disqualified. The maximum penalty for committing this offence is two years imprisonment. Additionally, under subsection 126A(5), the disqualification can be revoked either on the initiative of the Commissioner or based on a written application from the disqualified person. Finally, the Act provides recourse for those who are affected by the decision and are dissatisfied with it. Section 344 of the SISA allows for a request to the Commissioner to reconsider the decision, which must be made in writing within 21 days of receiving the notice of the decision and must specify the reasons for dissatisfaction. This ensures that there is a mechanism in place for individuals to seek a review of the disqualification decision if they believe it to be incorrect.