Part D - Payment of interest on unclaimed moneys

At present, no interest is payable on amounts that are classified as ‘unclaimed’ under the relevant provisions of the Banking Act, the FHSAs Act, the LI Act, the SUMLM Act and the Corporations Act. As a result, previously unclaimed amounts that are repaid to claimants (should they reclaim their money) are not indexed to take account of the time that has elapsed since the money was classified as ‘unclaimed’.

The Bill provides that owners of unclaimed money will be entitled to a payment of interest on that money, which will be calculated according to the regulations. The interest accrues, and is payable, from 1 July 2013. The regulations may prescribe different rates for different periods over which interest accrues.

The Government has announced that interest will be paid at the rate of CPI inflation. The Government also intends to introduce legislation in early 2013 to exempt the interest from tax.

In each of the acts concerned, the interest is paid by the same entity or authority that pays the unclaimed money to a claimant, specifically:

• the ADI, under the Banking Act;
• the FHSA provider, under the FHSAs Act;
• the Treasurer, under the LI Act;
• the Commissioner, under the SUMLM Act; and
• ASIC, under the Corporations Act.

Next: Part E - Timing
Previous: Part C - Corporations (Schedule 5)
Return to: Home