Check your inactive accounts, before Labor swipes them
3rd December, 2012
Federal Member for Wide Bay, Warren Truss, today warned local residents that they could lose funds held in inactive bank, superannuation and insurance accounts, as a result of a Gillard Labor Government mini-budget initiative.“Legislation passed Federal Parliament last week to allow the Gillard Government to sweep up $700.9 million from people’s private bank, insurance and superannuation accounts in this year alone. Three quarters of Labor’s so called budget “surplus” will actually be taken out of people’s accounts without their knowledge,” Mr Truss said.
“Over the next four years, the Government plans to rake in $886 million in its grab for cash from savings and investments.”
The Gillard Labor government has cut the time that funds can be held in inactive bank, first saver, and insurance accounts from seven years down to three years, at which time those funds will be automatically transferred to the Government.
Superannuation accounts that have been inactive for five years, with balances of less than $2,000 — up from $200, will also be transferred to the Government.
While the money can be reclaimed by account owners, the Government is reckoning on much of the money never being paid back.
“This grab for cash by Labor will affect thousands of people who like the security of keeping their money in the bank, but for whatever reason have no need to transact on their accounts. Worse still, interest will not be paid on any amount that the Government seizes until after 30 June 2013,” Mr Truss said.
“This could have serious consequences for parents who have set aside savings for their children, grandparents who have set up savings accounts for their grandchildren, or people on fixed or low incomes who are not accessing their savings but want peace of mind, knowing that they have reserve funds ready in the event of an emergency.
“Under Labor’s changes, if their money has been sitting idle in their account for more than three years, the Government will swipe it,” Mr Truss said.
“I strongly encourage anyone who may have an account that has not been used in the last three years, or a superannuation account with a balance of less than $2,000 to make contact with your financial institution and make arrangements to hold on to your money before the Government grabs it.”
To locate funds from an inactive bank account, visit https://www.moneysmart.gov.au/tools-and-resources/find-unclaimed-money or to locate lost superannuation visit http://australia.gov.au/service/superseeker-lost-superannuation-search
