The Coalition Government this week has honoured their election commitment and announced that it will be introducing legislation to improve the way that unclaimed money in savings accounts and life insurance policies is managed.
Federal Member for Wright, Scott Buchholz, has been a long-term supporter of the Governments plans to reverse the changes Labor introduced in 2012.
“At the time I called it for it is, a blatant cash grab. Bill Shorten, then Minister for Financial Services was responsible for millions of dollars from the accounts of unsuspecting Australians being taken and transferred to the government’,
“I’m ecstatic that our Government is going to reverse this but changing the time bank accounts and life insurance policies can be inactive back to 7 years” said Mr Buchholz.
Mr Buchholz recalls the anger and concern these changes caused local residents when they were introduced in 2012.
“We were flooded with calls from concerned and distressed account owners who didn’t want their hard-earned savings snatched away from them”,
“One resident’s story still sticks with me. The savings account where she had been putting money aside for her children to access in the future to buy their first cars with raided” said Mr Buchholz.
Mr Buchholz said the changes to unclaimed money arrangements will provide greater certainty and fairness, as well as cut red tape, saving business and individuals $36 million per year in compliance costs.
The changes will apply to the next unclaimed money deeming date of 31 December 2015.
There is currently around $700 million in lost bank accounts and life insurance policies. Australians can access information about unclaimed accounts, free of charge, through the ASIC MoneySmart website at www.moneysmart.gov.au