Notice of Disqualification – Sheila Moloney – 23 October 2025

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to address the need for rigorous oversight and regulation of the superannuation industry in Australia, aiming to protect the interests of superannuation fund members by ensuring their funds are managed responsibly. This Act was introduced by the Commonwealth Parliament with the policy objective of maintaining the integrity and stability of the superannuation system. The SISA provides the Commissioner of Taxation with the authority to disqualify individuals from acting as trustees, investment managers, or custodians of superannuation entities if they find them unfit due to repeated or serious breaches of the Act. The legislation includes provisions for such disqualifications to be publicly notified and allows for the possibility of revocation under certain conditions, ensuring that both the public and the affected parties are kept informed about the status of these disqualifications.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and corporate trustees involved in the management of superannuation entities within Australia. Specifically, the Act targets responsible officers of corporate trustees who are implicated in the contravention of SISA provisions. The jurisdictional reach of the Act is national, applying uniformly across Australia. The Act includes provisions for disqualifying individuals who have been associated with repeated or serious breaches of its regulations, as illustrated by the notice of disqualification issued to Sheila Moloney. The disqualification is enforced by a delegate of the Commissioner of Taxation and becomes effective immediately upon issuance. Additionally, the Act outlines severe penalties for disqualified individuals who continue to engage in prohibited activities, including potential jail terms of up to two years. The Act also provides mechanisms for reconsideration of disqualification decisions and potential revocation of disqualifications by the relevant authorities.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) provides a framework for the regulation and supervision of superannuation entities in Australia. Section 126A of the Act empowers the Commissioner of Taxation to disqualify individuals from being involved in the administration of these entities. In this case, Sheila Moloney has been disqualified under subsection 126A(2) by Ben Kelly, a delegate of the Commissioner, due to her role as a responsible officer of a corporate trustee that contravened the SISA on multiple occasions. The disqualification notice was issued on 23 October 2025 and became effective immediately upon issuance. The SISA imposes several obligations on the parties and entities it governs, including responsible officers of corporate trustees. These individuals must adhere to the provisions of the Act and ensure that the superannuation entities they oversee comply with relevant regulations. Failure to do so can lead to personal disqualification, as demonstrated in Sheila's case. The Act also mandates that any details of such disqualifications are to be published as a notifiable instrument in the Federal Register of Legislation, as per subsection 126A(7). Breaching the terms of the SISA can have serious consequences, including both civil and criminal penalties. For example, section 126K of the Act stipulates 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. Furthermore, under subsection 126A(5), the disqualification may be revoked either by the Commissioner on their own initiative or upon the disqualified person’s written application. Additionally, Sheila has the right to seek reconsideration of the decision if she is not satisfied with it. According to section 344 of the SISA, she must submit a written request to the Commissioner within 21 days of receiving the notice, outlining the reasons she believes the decision is incorrect. This provision ensures that individuals have an opportunity to contest the disqualification if they believe it was made in error or under unjust circumstances.