Why is government taking my untouched money?

After recently being told that the Federal Government now has the power to access private bank accounts that have not been operated for three years and remove all of the money held there, I contacted the Member for Robertson Deborah O'Neill's office to ask if the rumour was true.

Ms O'Neill's staff were very helpful and supplied me with a document outlining amendments made to the Unclaimed Money and Other Measures Act 2012 which states (in part) that as of May 31 this year this is in fact the case.

The document states that where you do not deposit or withdraw money from a bank account for a period of three years or more the money will be deemed unclaimed money and paid to ASIC (Australian Securities and Investment Commission.)

The good news is if you have your money taken from your bank account by the Federal Government after July 1 the Government will pay interest on the money should you wish to claim it back.

If you do not want your bank account raided you must be sure to operate the account within the three-year period.

One is left to wonder how we ever arrived at this situation and just what my legitimate private financial affairs and banking habits have to do with the Federal Government.

Email, 18 Jun 2013

Vic Jefferies, St Huberts Island