Notice of Disqualification - Mr Michael Benjamin Smith – 17 April 2026

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to address issues and gaps in the regulation of the superannuation industry, ensuring it operates efficiently and in the best interests of its members. This legislation was introduced by the Parliament of Australia to provide a robust framework for the supervision of superannuation funds and to protect the rights of members by ensuring that trustees and other responsible officers act in accordance with the law. The policy objective of the Act is to maintain the integrity of the superannuation system by enforcing strict standards and disqualifying individuals who have breached their duties. The Act includes provisions to disqualify individuals found to have contravened the law in a manner serious enough to warrant such action, ensuring that those who abuse their positions are held accountable.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the management and administration of superannuation funds in Australia. This Act governs the conduct and transactions of trustees, investment managers, and custodians of superannuation entities, ensuring that they adhere to the specified standards and regulations. The geographic reach of the SISA is national, as it applies throughout Australia, impacting the operations of superannuation entities across various states and territories. The Act imposes strict compliance requirements, including disqualification provisions for those who contravene its stipulations, and it encompasses a broad range of activities related to the management of superannuation funds. Subordinate instruments, such as regulations and legislative rules, may extend or clarify the application of the SISA, thereby providing additional guidelines and specific conditions under which the Act operates.

Key Provisions

The key provision of this notice under subsection 126A(6) of the Superannuation Industry (Supervision) Act 1993 (SISA) involves the disqualification of Mr. Michael Benjamin Smith by Ben Kelly, a delegate of the Commissioner of Taxation. This disqualification arises due to Mr. Smith's contraventions of the SISA, with the seriousness of these contraventions justifying the disqualification. The notice specifies that the disqualification is effective from the date of its issuance, which is 17 April 2026. The notice also informs Mr. Smith that the details of his disqualification will be published in the Federal Register of Legislation as a notifiable instrument. Under the SISA, Mr. Smith, once disqualified, faces specific obligations and restrictions. Section 126K of the Act stipulates that it is an offence for a disqualified person, who is aware of their disqualification, to act as a trustee, investment manager, or custodian of a superannuation entity, or to be a responsible officer or a body corporate that holds any of these roles. This prohibition is critical in ensuring compliance with the Act and maintaining the integrity of superannuation management. The penalties for violating this provision are severe, with the maximum penalty being two years imprisonment. These obligations underscore the importance of adherence to the Act's requirements and the serious consequences of non-compliance. Additionally, the notice provides avenues for review and potential revocation of the disqualification. According to subsection 126A(5) of the SISA, the disqualification may be revoked either by the delegate's own initiative or following a written application from Mr. Smith. This flexibility allows for reconsideration based on new information or a change in circumstances. Furthermore, section 344 of the SISA allows Mr. Smith to request the Commissioner to reconsider the disqualification decision if he is dissatisfied with it. This reconsideration request must be made in writing within 21 days of receiving the notice and must outline the reasons for believing the decision is incorrect. These provisions ensure that there are mechanisms in place for addressing potential injustices or changes in Mr. Smith's situation.