Notice of Disqualification – Sava Kourris - 10 July 2025

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to address the need for stringent oversight and regulation of the superannuation industry in Australia, ensuring the protection of superannuation funds and the rights of beneficiaries. The Act is administered by the Australian Taxation Office and aims to maintain the integrity and efficiency of the superannuation system, preventing misconduct and breaches of the law by individuals associated with superannuation entities. One of the key provisions of the SISA is the power to disqualify individuals who have contravened the Act, as demonstrated in the notice issued to Sava Kourris, reflecting the policy objective of upholding high standards of conduct within the superannuation sector. This legislative framework is essential in maintaining public confidence in the superannuation system and safeguarding the financial interests of superannuation fund members.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the administration and management of superannuation entities, including trustees, investment managers, custodians, and responsible officers of superannuation entities. The Act has a national jurisdictional reach, applying across Australia, including to Commonwealth, state and territory entities. The Act allows for disqualification of individuals who contravene its provisions, with the disqualification taking immediate effect upon notice. Disqualified individuals are prohibited from acting as trustees, investment managers, custodians, or responsible officers of superannuation entities, with a maximum penalty of two years imprisonment for contravening this prohibition. The Act provides for the revocation of disqualifications and allows for reconsideration of decisions by the Commissioner of Taxation. The Act may be extended or restricted in application through subordinate instruments, and details of disqualifications are published as Notifiable Instruments in the Federal Register of Legislation.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) includes specific provisions for disqualifying individuals from holding certain roles within superannuation entities. Under subsection 126A(6), a delegate of the Commissioner of Taxation can issue a notice of disqualification if they are satisfied that the individual has contravened the SISA. In this case, the notice was issued to Sava Kourris by Emma Rosenzweig, a delegate of the Commissioner, stating that she has disqualified him due to contraventions of the Act. The disqualification takes effect immediately upon issuance of the notice. The Act imposes significant obligations on individuals such as Sava Kourris who are involved in the management or administration of superannuation entities. Specifically, section 126K of the SISA prohibits a disqualified person from acting as a trustee, investment manager, custodian, responsible officer, or being part of a body corporate that holds such roles in a superannuation entity. This prohibition aims to protect the interests of superannuation fund members by ensuring that only suitable and compliant individuals manage their retirement savings. Breach of these obligations can lead to serious legal consequences. According to section 126K, it is an offence for a disqualified person to act in any of the prohibited capacities. The penalty for committing this offence is severe, with a maximum penalty of two years imprisonment. This reflects the importance the legislation places on maintaining the integrity and governance of superannuation funds. Additionally, the SISA provides mechanisms for individuals to seek reconsideration of a disqualification decision. Under section 344, Sava Kourris can request the Commissioner to reconsider the decision if he is not satisfied with it. This request must be made in writing within 21 days of receiving the notice of disqualification and should include the reasons for believing the decision is incorrect. Furthermore, under subsection 126A(5), the disqualification can be revoked either by the delegate on their own initiative or following a written application from the disqualified person.