Part E - Timing

ADIs and life insurers are required by the Banking Act, FHSAs Act and LI Act to assess unclaimed amounts as at 31 December and submit those amounts to ASIC by 31 March of the following year. The Bill contains transitional provisions that extend the date by which ADIs and life insurers must report on and transfer unclaimed moneys to ASIC next year by one month to 30 April 2013. Typically, however, ADIs and life insurers start making payments in January.

Superannuation funds are required by the SUMLM Act to assess unclaimed amounts as at 31 December and 30 June, and submit those amounts to the ATO by 30 April and 31 October respectively.

The Government has indicated that the amendments are intended to take effect from 31 December 2012. However many ADIs, life insurers and superannuation funds are reluctant to make changes to their unclaimed money systems until the Bill has passed the Parliament. Failure to pass the Bill this year will therefore create considerable uncertainty for these organisations, and result in increased inconvenience and likely higher implementation costs for many organisations in early 2013.

As discussed in the sections above, these amendments will provide benefits worth many millions of dollars to the owners and beneficiaries of lost accounts, by protecting them from erosion by inflation and fees, and helping to reunite them with their owners sooner. These benefits will be put at risk if the Bill does not pass the Parliament by the end of this year, given it would result in organisations not making the system changes required to implement the amendments.

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