Senator the Hon. Mathias Cormann
Minister for Finance
Acting Assistant Treasurer
Date: Monday, 26 May 2014
The Government is today releasing a discussion paper on ways we can improve the unclaimed moneys provisions.
In October 2012, the previous government announced changes to unclaimed moneys provisions that reduced the period of inactivity required before bank accounts and unclaimed life insurance amounts are transferred to the Government from seven to three years.
These changes have caused substantial and ongoing disruption for affected account holders and the financial services industry, which is why the Coalition opposed these changes in opposition.
To ensure we provide a better balance of protecting the value of an account holder's funds and making it easier for people to be reunited with their money, the Government is looking for submissions to the discussion paper.
In addition to discussing the possibility of extending the required period of inactivity, exempting a broader range of products and addressing privacy concerns, the Government is also seeking views on how to reduce the regulatory burden.
This initiative is consistent with the Government's commitment to reduce $1 billion worth of red and green tape each year.
The discussion paper is available on the Treasury website. Submissions close on 11 July 2014.
Karen Wu - 0428 350 139