The Senate Economics Legislation Committee has tabled a report titled “Treasury Legislation Amendment (Unclaimed Money and Other Measures) Bill 2012 [Provisions]“.
The committee recommends that the Bill be passed.
Under current arrangements, authorised deposit-taking institutions (ADIs) are required to transfer to ASIC bank account moneys where there has not been a deposit or withdrawal for seven years. FHSA providers are also required to transfer FHSA moneys to ASIC where the account has been inactive for seven years. Similarly, life insurance moneys must be transferred to ASIC within seven years of the money becoming payable (such as when a policy matures).
The amendments reduce from seven years to three years the period of inactivity before banks accounts, FHSAs and life insurance moneys are treated as unclaimed.
As a transitional measure, the Bill provides for an extension from 31 March 2013 to 30 April 2013 on the deadline for ADIs and life insurance providers to report on, and transfer to the Commonwealth, unclaimed bank account and life insurance moneys as at 31 December 2012.
The committee acknowledges concerns expressed by a number of ADIs that the reduction in the period of inactivity before accounts are treated as unclaimed could potentially lead to moneys that are not genuinely unclaimed being treated as such. However, the committee also notes that the Bill provides for regulations to be implemented which would exclude certain accounts and deposits for being treated as unclaimed moneys.
The committee also acknowledges that some financial institutions are concerned about the implementation timeframe for the amendments.
