The Treasury Legislation Amendment (Unclaimed Money and Other Measures) Bill 2012 Tue 27.11.2012, passed the House of Reps with 7 Government amendments and now moves to the Senate.
The Bill proposes to make amendments to various Acts to bring forward the time at which money is recognised under the relevant law as lost or unclaimed. The Government amendments to the Bill will provide authorised deposit-taking institutions, First Home Saver Account providers, life insurers and superannuation funds with more time for implementation. These entities will now have until 31 May 2013 to report on and transfer lost accounts and other lost moneys to ASIC or the Tax Office as appropriate. The amendments also allow for regulations to clarify the treatment of various accounts.
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Bill passed and awaits Royal Assent
The Treasury Legislation Amendment (Unclaimed Money and Other Measures) Bill 2012 was passed by the Senate without amendment on Thur 29.11.2012 and awaits Royal Assent.
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Government flags amendments
The Government has announced that it intends to make amendments to the Treasury Legislation Amendment (Unclaimed Money and Other Measures) Bill 2012 which is currently before the House of Reps.
- The Government said it will amend the Bill to provide authorised deposit-taking institutions (ADIs), First Home Savers Account providers, life insurers and superannuation funds more time for implementation. Under the proposed changes, these entities will now have until 31 May 2013 to report on and transfer lost accounts and other lost moneys to ASIC or the ATO as appropriate.
- The Government said it will also clarify a number of technical matters through regulation to avoid capturing accounts unintentionally. The proposed regulations will clarify that superannuation accounts that have been active in the last 12 months, but where the member is uncontactable, will not be transferred to the ATO. Other changes concern children’s accounts, First Home Saver Accounts, term deposits, sub-accounts, linked accounts, mortgage offset accounts, and accounts frozen by court order or another legal requirement.
Source: Parliamentary Secretary to the Treasurer’s media release No 051, 26 November 2012
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*Unclaimed Money Bill: Treasury submission to Senate Economics Committee about uniting lost accounts with owners, paying CPI rate tax free interest
Treasury Mon 12.11.2012, released a submission it made to the Senate Economics Legislation Committee as part of its inquiry into the Treasury Legislation Amendment (Unclaimed Money and Other Measures) Bill 2012.
Broadly, the Bill proposes to bring forward the time at which lost and unclaimed money in superannuation funds, bank accounts and insurance policies is paid to the Commissioner.
From 1 July 2013, interest will be paid on unclaimed moneys at the rate of CPI inflation. Treasury indicated that the Government intends to introduce legislation in early 2013 to exempt from tax this interest paid on unclaimed moneys.
The Treasury submission provides an overview of the Bill and information about the current arrangements for unclaimed money. Treasury considers that the proposed amendments will help reunite these lost accounts with their owners and prevent them from being eroded by inflation and fees.
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Unclaimed Money Bill reviewed by the Senate Economics Committee – divided report on party lines recommended passing the Bill
The Senate Standing Committee on Economics has recommended that the Treasury Legislation Amendment (Unclaimed Money and Other Measures) Bill 2012 be passed [on or before 20 Nov 2012].
The Bill proposes to make amendments to various Acts to bring forward the time at which money is recognised under the relevant law as lost or unclaimed. While noting some concerns, the Committee said it believed the amendments given effect by the Bill would be “of significant benefit to consumers”.
The Coalition Senators on the Committee issued a dissenting report recommending that the Government withdraw the Bill so that further consultation could occur on a range of issues or, failing that, that the Bill be amended.
[LTN 225, 20/11]