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Migrant Mother

Aussie Government To Raid Bank Accounts Inactive For 3 Years

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HOUSEHOLDS face losing up to $109 million from their family savings as the Federal government moves to seize cash from inactive bank accounts.

After legislation was rushed through parliament, the government will from May 31 be able to transfer all money from accounts that have not been used for three years into their own revenues.

This will mean that accounts with anything from $1 upwards that have not had any deposit or withdrawals in the past three years will be transferred to the Australian Securities and Investment Commission.

The law is forecast to raise $109 million this year as inactive accounts for three years or more are raided by Treasury.

Just another boost for the coffers

The money can be reclaimed from ASIC but the process can take months.

Experts warn this will have a negative impact on people that may have put money away in a special account for their children's education or decided to put an inheritance in a separate account for a rainy day.

The previous legislation allowed for bank accounts to remain inactive for up to 7 years before the money was transferred to ASIC.

Do you have a bank account you haven't used for three years? If so, contact us at stephen.mcmahcon@news.com.au

Australian Bankers Association chief executive Steven Munchenberg said there is no benefit for consumers from the changes.

"It is very hard to see why this needed to be rushed through but there have been suggestions it was done more for the government's own financial circumstances rather than customers needs," he said.

Mr Munchenberg warned that unaware customers face having accounts frozen and could face months of delays trying to reclaim their won money from ASIC.

This cash grab comes as economists warn the government is on track to hand down a $15 billion budget deficit in May as company tax receipts collapse.

Before Christmas, Treasurer Wayne Swan junked the government's previously "rock solid" promise to produce a surplus in 2012-13.

The government had also been committed to surpluses in future financial years, too.

But despite the introduction of some tough cost-cutting measures, the latest research from global bank UBS forecasts the May budget will show a $12 billion black hole in revenues and cost overruns of about $3 billion. The biggest pain is coming from the expected $8 billion fall in taxes from the corporate sector.

Link

Blimey the theft really is global. :ph34r:

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So you can't save it and leave it...

Will the courts allow them to get away with this?

Why 3 years?

I had an account that I didn't touch for well over a decade, not a great deal of money in it and I eventually just withdrew the cash, if this had been in the UK I would have lost it... It's a stupid fecking law.

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News of the plans cam out in Feb:

http://www.seniorau.com.au/index.php/more-seniorau-news/3522-seizing-inactive-bank-accounts-attack-on-property-rights

We already have it here. it started in April 2012, for the Big Society Bank. :rolleyes:

They have to be dormant for 15 years here though:

http://www.thisismoney.co.uk/money/saving/article-2124953/Big-Society-Capital-bank-launched-Cameron-raids-400m-dormant-bank-accounts.html

If the owner suddenly pops up and asks for his money (or most likely his estate, if they know about it), they'll cough it back.

"Bank customers will still be able to claim back money given to the Government if they can prove it is rightfully theirs."

Edited by deflation

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The link doesn't make it clear but presumably it's referring to current accounts and maybe even instant access deposit accounts rather than things like say 5 year bond accounts some of which (at least in the UK) don't allow any withdrawals at all for the duration of the account?

So by definition are "inactive" for the 5 year period?

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The link doesn't make it clear but presumably it's referring to current accounts and maybe even instant access deposit accounts rather than things like say 5 year bond accounts some of which (at least in the UK) don't allow any withdrawals at all for the duration of the account?

So by definition are "inactive" for the 5 year period?

If it is current accounts, handy way for the banks to lobby for their "dormant" or non fee paying accounts slipping off their cost base without directly upsetting their customers by writing to them and forecably closing their accounts themselves.

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If they are doing that they should give the money to charity.......and if in the future the owner with proof of ownership makes a claim should get their money back......I would have thought dormant accounts cost money to maintain some have only a few pence in, people have forgotten they have them, died, moved away years ago without leaving up to date contact details etc.etc. ;)

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News of the plans cam out in Feb:

http://www.seniorau.com.au/index.php/more-seniorau-news/3522-seizing-inactive-bank-accounts-attack-on-property-rights

We already have it here. it started in April 2012, for the Big Society Bank. :rolleyes:

They have to be dormant for 15 years here though:

http://www.thisismoney.co.uk/money/saving/article-2124953/Big-Society-Capital-bank-launched-Cameron-raids-400m-dormant-bank-accounts.html

If the owner suddenly pops up and asks for his money (or most likely his estate, if they know about it), they'll cough it back.

"Bank customers will still be able to claim back money given to the Government if they can prove it is rightfully theirs."

But apparently there's no obligation for the government to prove that "it is rightfully theirs" before confiscating (stealing) it?

Apart that is from announcing they're going to do it.

"money "given" to the government" :rolleyes:

Democracy :rolleyes:

Edited by billybong

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News of the plans cam out in Feb:

http://www.seniorau.com.au/index.php/more-seniorau-news/3522-seizing-inactive-bank-accounts-attack-on-property-rights

We already have it here. it started in April 2012, for the Big Society Bank. :rolleyes:

They have to be dormant for 15 years here though:

http://www.thisismoney.co.uk/money/saving/article-2124953/Big-Society-Capital-bank-launched-Cameron-raids-400m-dormant-bank-accounts.html

If the owner suddenly pops up and asks for his money (or most likely his estate, if they know about it), they'll cough it back.

"Bank customers will still be able to claim back money given to the Government if they can prove it is rightfully theirs."

Very sinister.

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If it is current accounts, handy way for the banks to lobby for their "dormant" or non fee paying accounts slipping off their cost base without directly upsetting their customers by writing to them and forecably closing their accounts themselves.

I was so annoyed at ING when they slashed my interest rate in 2008, that I left £0.02 in it. They send me emails and have to keep writing me letters informing me of rate changes, etc, including the transfer of my money to Barclays.

The UK rule about proving it's yours is undoubtedly about stolen or laundered money in old accounts which could be opened without id not so many years ago. Banks write to people about unused accounts but they move, emigrate, go to prison, die, etc.

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The law is forecast to raise $109 million this year as inactive accounts for three years or more are raided by Treasury.

It seems a very small amount compared to all the bailout money the taxpayers have been forced by governments to bailout the banks with.

One way or another that's been trillions apparently.

If the government's finances are so desperate can't the banks just hand back a fraction of the bailout money rather than have the depositors' money stolen.

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They are scraping the barrel by raiding pocket change out of peoples old accounts.

What does that $109 AUS amount to for Skippy's gov't? About a weeks worth of benefit payments?

It's a sneeze that will insure that the sitting politicians catch cold and get royally punted though.

Kind of comical. Australia never ceases to amaze the west with their strange country and politics.

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Its already been tried here.

Indeed we went a stage further andsold off a bank, that no one knew who it belonged to (the TSB).

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If only they transferred unclaimed debts across as well....

Edited by wherebee

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  • 238 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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