3-year law on dormant money


There has been a call to a change controversial money law which sees the Government seize money from bank accounts that have been inactive for three years.

The Australian Securities and Investments Commission (ASIC) withholds money from these inactive bank accounts which contain a balance of $500 or more and that have been inactive for three years or over.

The money then goes into the government's consolidated funds, but it can be reclaimed anytime by providing proof of identity to the bank, which then reclaims the money via ASIC.

In an article from the ABC, the Federal Government has claimed a record $360 million from this law.

"Figures from the corporate regulator show the Government took a record $360 million from 80,000 savings accounts this year as a change to unclaimed money laws took effect."

But there is speculation that the Treasury will now lengthen the threshold to five years.

Treasurer Joe Hockey has been reported saying that the Government will review its policy of seizing savings which are left idle for three years and over.