Notice of Disqualification – Sarah Waters - 9 March 2026

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to address the need for oversight and regulation within the superannuation industry to ensure the protection of superannuation benefits and the proper administration of superannuation entities. This legislation was introduced by the Australian Parliament to provide a regulatory framework that maintains the integrity and sustainability of the superannuation system. The policy objective of the SISA is to safeguard the financial interests of superannuation fund members by ensuring that trustees, investment managers, and custodians comply with legal and regulatory standards. In the case of Sarah Waters, the Act empowers the Commissioner of Taxation to disqualify individuals from acting in responsible roles within superannuation entities if there is evidence of contraventions that warrant such action, ensuring that those who fail to adhere to the regulatory requirements are held accountable.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) governs the disqualification of individuals who are responsible officers of corporate trustees that have contravened the Act. The legislation applies to individuals such as Sarah Waters, who, as a responsible officer of a corporate trustee, has been found to have contravened the SISA, thereby leading to their disqualification. The scope of the Act encompasses the entire Commonwealth of Australia, and its provisions are enforced by the Commissioner of Taxation through designated delegates, such as Ben Kelly. The disqualification extends to preventing the disqualified person from acting as a trustee, investment manager, or custodian of a superannuation entity or being a responsible officer of such entities. This prohibition is stringent, with significant penalties, including up to two years in jail, for any contravention of this disqualification. The disqualification may be subject to revocation either by the Commissioner on their own initiative or upon the written application of the disqualified person. Additionally, the Act provides a recourse for individuals who disagree with the disqualification, allowing them to request reconsideration of the decision within 21 days of receiving notice, as stipulated under section 344 of the SISA.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) includes a provision that allows for the disqualification of individuals who are responsible officers of corporate trustees involved in breaches of the Act. In this case, Sarah Waters has been disqualified under subsection 126A(2) of the SISA because she was a responsible officer at the time of the contraventions committed by the corporate trustee of one or more superannuation entities. This disqualification takes effect immediately upon the issuance of the notice, which is dated 9 March 2026. The Act imposes several obligations on parties involved with superannuation entities. It mandates that responsible officers ensure compliance with all provisions of the SISA, and any failure to do so can lead to personal disqualification. Furthermore, the Act requires the Commissioner of Taxation to notify the affected individual of such disqualification in writing, as detailed in subsection 126A(6) of the SISA. Additionally, the disqualification notice must be published as a Notifiable Instrument in the Federal Register of Legislation under subsection 126A(7) of the SISA. Breaches of the SISA carry significant consequences. Specifically, 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 of such a body. The maximum penalty for this offence is two years imprisonment, underscoring the seriousness with which the Act treats non-compliance. Furthermore, the disqualification can be revoked either on the initiative of the Commissioner of Taxation or upon a written application by the disqualified person, as permitted by subsection 126A(5) of the SISA. For those dissatisfied with the disqualification decision, section 344 of the SISA provides a recourse. Any affected party can request the Commissioner to reconsider the decision within 21 days of receiving the notice. This reconsideration request must be made in writing and should detail the reasons why the decision is believed to be incorrect. This process ensures that individuals have an opportunity to contest the disqualification if they believe it to be unjust.