Who must comply with SIS Act trustee covenants?
The applicability test for Comply with SIS Act trustee covenants (APRA, ASIC and ATO), computed across 35 industries, 9 business structures and 6 size bands.
Short answer: Some businesses
Applies when the business has industry: Superannuation trustees or an SMSF.
What the obligation is
Super fund trustees owe statutory covenants of care, skill, diligence, best financial interests, and prudent investment.
Section 52 of the Superannuation Industry (Supervision) Act 1993 imposes covenants on trustees of regulated super funds: act with care, skill and diligence; act in the best financial interests of beneficiaries; avoid conflicts; observe prudent investment principles; and maintain adequate financial resources. APRA-regulated trustees additionally comply with SPS 510, SPS 530, SPS 220.
The applicability test
Applies when the business has industry: Superannuation trustees or an SMSF.
How the regulator frames it: Trustees of regulated superannuation funds (APRA-regulated RSE licensees and SMSF trustees).
What triggers it: Holding office as a super fund trustee.
Jurisdiction: Commonwealth law, so the test is the same in every state and territory.
Which industries are in or out
Outcome across the 35 industries Rules Mate maps (1 of 35: yes; 34 of 35: depends on size or structure).
| Industry | Answer |
|---|---|
| Superannuation trustees | Yes |
| Real estate agents | Depends on size or structure |
| Accountants & bookkeepers | Depends on size or structure |
| Lawyers & solicitors | Depends on size or structure |
| Conveyancers | Depends on size or structure |
| Trust & company service providers | Depends on size or structure |
| Precious metals & stones dealers | Depends on size or structure |
| Fintech (non-bank) | Depends on size or structure |
| Banks & ADIs | Depends on size or structure |
| General insurers | Depends on size or structure |
| Credit licensees & mortgage brokers | Depends on size or structure |
| Aged care providers | Depends on size or structure |
| NDIS providers | Depends on size or structure |
| Health practitioners | Depends on size or structure |
| Medical devices & therapeutic goods | Depends on size or structure |
| Private health insurers | Depends on size or structure |
| Cafés & restaurants | Depends on size or structure |
| Hotels, pubs & licensed venues | Depends on size or structure |
| Retail trade | Depends on size or structure |
| E-commerce & online retail | Depends on size or structure |
| Construction (residential & commercial) | Depends on size or structure |
| Manufacturing | Depends on size or structure |
| Agriculture, forestry & fishing | Depends on size or structure |
| Mining & resources | Depends on size or structure |
| Road transport & logistics | Depends on size or structure |
| Aviation (incl. drones) | Depends on size or structure |
| Maritime & ports | Depends on size or structure |
| Education — registered training orgs | Depends on size or structure |
| Education — higher education providers | Depends on size or structure |
| Software & SaaS | Depends on size or structure |
| Professional services (general) | Depends on size or structure |
| Charities & not-for-profits | Depends on size or structure |
| Telecommunications carriers / CSPs | Depends on size or structure |
| Media & publishing | Depends on size or structure |
| Gambling & wagering | Depends on size or structure |
Business structure and size
| Structure | Answer across all industries, any size | Engine's reason (real estate agents, 6–19 employees) |
|---|---|---|
| Sole trader | Depends on size or structure | Requires industry: Superannuation trustees or an SMSF |
| Partnership | Depends on size or structure | Requires industry: Superannuation trustees or an SMSF |
| Trust | Depends on size or structure | Requires industry: Superannuation trustees or an SMSF |
| Pty Ltd company | Depends on size or structure | Requires industry: Superannuation trustees or an SMSF |
| Public company | Depends on size or structure | Requires industry: Superannuation trustees or an SMSF |
| Not-for-profit (unregistered) | Depends on size or structure | Requires industry: Superannuation trustees or an SMSF |
| Registered charity | Depends on size or structure | Requires industry: Superannuation trustees or an SMSF |
| Super fund | Yes | Self-managed super fund |
| Foreign company | Depends on size or structure | Requires industry: Superannuation trustees or an SMSF |
Size does not change the answer across all industries: at every size band the answer is "depends on size or structure".
Worked examples
Each line is one run of the Rules Mate applicability engine for a single business profile, with the reason the engine gives:
- Pty Ltd company in superannuation trustees with 6–19 employees, turnover $1M–$3M: applies. Industry: Superannuation trustees.
- Pty Ltd company in real estate agents with 6–19 employees, turnover $1M–$3M: does not apply. Requires industry: Superannuation trustees or an SMSF.
What you must do, and when
- When due
- Continuous.
- Frequency
- Ongoing
- Evidence to keep
- Investment governance framework, conflicts register, trustee minutes, BFID decision documentation.
- Status
- Current
- Priority
- Critical
Penalty for not complying
Maximum penalty: Civil penalties (Commonwealth penalty units, indexed); loss of RSE licence; member compensation orders.
Audit or assurance level
Rules Mate has not yet classified the audit or assurance level for this obligation. Any audit, review or certification requirement is set by the regulator source listed below.
What usually applies alongside it
Across the 1,890 business profiles Rules Mate evaluates, these obligations apply to most of the businesses this one applies to, and are far more common among them than among businesses generally:
Where it sits in the corpus
Rules Mate tracks 9 published obligations tagged "super", 6 of them rated critical. For a professional services Pty Ltd company with 6–19 employees operating in every state, 2 of those apply outright. This obligation is rated critical priority, and is an ongoing duty.
Regulator, legislation and tools
Regulated by Australian Prudential Regulation Authority, Australian Securities and Investments Commission and Australian Taxation Office.
APRA: Prudential regulator of banks (ADIs), insurers (general, life, private health), and superannuation funds. Sets and enforces CPS standards including CPS 234 (information security) and CPS 230 (operational risk).
ASIC: Corporate regulator administering the Corporations Act, financial services and credit licensing (AFSL/ACL), markets supervision, insolvency, and registries (ASIC and ABRS).
ATO: Federal tax administrator covering income tax, GST, PAYG, FBT, superannuation guarantee, STP, and self-managed super funds. Also administers the Director ID regime via ABRS.
- Australian Prudential Regulation Authority
- Australian Securities and Investments Commission
- Australian Taxation Office
SIS Act: Federal supervision of superannuation.
Free tools that help with this obligation:
Questions
- Who must comply with SIS Act trustee covenants?
- Applies when the business has industry: Superannuation trustees or an SMSF.
- Do sole traders need to comply with SIS Act trustee covenants?
- Depends on size or structure. Across every industry and every size band, the engine's answer for a sole trader is: depends on size or structure.
- Do businesses with 1–5 employees need to comply with SIS Act trustee covenants?
- Depends on size or structure (1–5 employees, turnover $100K–$1M).
- When is "Comply with SIS Act trustee covenants" due?
- Continuous.
Related
Sources
- APRA: official source
- Superannuation Industry (Supervision) Act 1993
- APRA guidance
- ASIC guidance
- ATO guidance
Computed by the Rules Mate applicability engine from the published obligation corpus; facts last checked 3 October 2026. Rules Mate is not a law firm and this is general information, not legal advice. Confirm your position with the regulator source or a qualified adviser before acting.