Notice of Disqualification – Yu-Chung Cheng - 6 February 2026

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to address the need for robust oversight and regulation of the superannuation industry in Australia. The primary aim of this legislation is to ensure the integrity and stability of the superannuation system by regulating the conduct of trustees, investment managers, and custodians of superannuation funds. This Act was introduced by the Australian Parliament, reflecting a policy objective to protect the interests of superannuation fund members by imposing stringent compliance and governance requirements on the industry. The SISA provides the Commissioner of Taxation with the authority to disqualify individuals who have acted in a manner that contravenes the provisions of the Act, particularly if they hold responsible positions within superannuation entities. This legislative framework is crucial in maintaining the trust and confidence of the Australian public in their superannuation arrangements.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) governs the disqualification of individuals who are responsible officers of corporate trustees involved in contraventions of the SISA. Specifically, the Act applies to individuals who, as responsible officers, are linked to multiple breaches by the corporate trustee of superannuation laws. The disqualification serves as a regulatory measure to ensure compliance within the superannuation industry. The jurisdictional reach of the Act is Commonwealth-wide, affecting all superannuation entities operating under the SISA. Exclusions and exemptions are limited, with the primary focus being on maintaining the integrity and proper functioning of superannuation arrangements. The application of the Act can be extended or restricted through subordinate instruments, although the primary provisions are detailed within the Act itself. Notably, any disqualified person found to contravene the Act by continuing to act in a capacity related to superannuation entities can face serious penalties, including imprisonment. The notice of disqualification is also subject to public disclosure, ensuring transparency and accountability within the industry.

Key Provisions

The key operative sections of the Superannuation Industry (Supervision) Act 1993 (SISA) in this context are subsections 126A(2) and 126A(6), which empower the Commissioner of Taxation to disqualify an individual who has acted as a responsible officer of a corporate trustee during a period when the trustee has contravened the Act. Specifically, under subsection 126A(2), the Commissioner can disqualify such an individual if the number of contraventions provides grounds for the disqualification. Subsection 126A(6) requires the Commissioner to give the disqualified person written notice of the disqualification. This notice must include the reasons for the disqualification and take effect on the date it is issued. The Act imposes several obligations on the parties it governs. Firstly, it requires responsible officers of corporate trustees to ensure compliance with the Act to avoid disqualification. Moreover, the Act mandates that the Commissioner must provide written notice to the disqualified person, detailing the reasons for the disqualification and its effective date, as stipulated in subsection 126A(6). Furthermore, under section 126K, the Act prohibits disqualified persons from acting as trustees, investment managers, or custodians of superannuation entities, or serving as responsible officers of entities that are trustees, investment managers, or custodians. The Act imposes significant consequences for breaches of its provisions. Specifically, under section 126K, it is an offence for a disqualified person to contravene the prohibition on acting as a trustee, investment manager, or custodian of a superannuation entity or serving as a responsible officer. The maximum penalty for this offence, as outlined in the Act, is two years imprisonment. Additionally, subsection 126A(7) requires the publication of details of the disqualification as a Notifiable Instrument in the Federal Register of Legislation, ensuring transparency and public awareness of the disqualification. Under section 344 of the SISA, if a person is affected by the disqualification and is not satisfied with it, they can request the Commissioner to reconsider the decision within 21 days of receiving notice. This request must be in writing and provide reasons why the decision should be reconsidered.