Banking Amendment (Unclaimed Money) Act 2013

Administered by Department of the Treasury

Legislation au C2013A00090 In force Act

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No. 90, 2013

An Act to amend the Banking Act 1959, and for related purposes

Contents

1 Short title

2 Commencement

3 Schedule(s)

Schedule 1—Banking Act 1959

Part 1—Amendments

Part 2—Application, transitional and savings provisions

Banking Amendment (Unclaimed Money) Act 2013

No. 90, 2013

An Act to amend the Banking Act 1959, and for related purposes

[Assented to 28 June 2013]

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Banking Amendment (Unclaimed Money) Act 2013.

2 Commencement

(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

Commencement information
Column 1	Column 2	Column 3
Provision(s)	Commencement	Date/Details
1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table	The day this Act receives the Royal Assent.	28 June 2013
2. Schedule 1	The later of: (a) the start of the day after this Act receives the Royal Assent; and (b) immediately after the commencement of item 1 of Schedule 1 to the Treasury Legislation Amendment (Unclaimed Money and Other Measures) Act 2012.	1 July 2013 (paragraph (b) applies)

Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

(2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3 Schedule(s)

Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Banking Act 1959

Part 1—Amendments

1 Subsection 69(2)

Omit “subsections (1) and (1A)”, substitute “this section”.

2 Subsection 69(3)

Repeal the subsection, substitute:

(3) An ADI must, within 3 months after the 31 December in each year, deliver to the Treasurer a statement, complying with subsection (4) and any regulations under subsection (3A), of all sums of unclaimed moneys of not less than $100 (or such other amount as is prescribed) as at the end of the year, other than unclaimed moneys:

(a) held in RSAs (within the meaning of the Retirement Savings Accounts Act 1997); or

(b) held in FHSAs (within the meaning of the First Home Saver Accounts Act 2008); or

(c) held in accounts with the ADI that are operated on either by deposit or withdrawal between the end of the year and the day the statement is delivered to the Treasurer.

Note: The First Home Saver Accounts Act 2008 deals with unclaimed money held in FHSAs.

3 Paragraph 69(4)(b)

Omit “due”, substitute “required to be paid under subsection (5)”.

4 Subsection 69(5)

Repeal the subsection, substitute:

(5) The ADI must, at the time of the delivery of the statement, pay the Commonwealth an amount equal to the total of all sums of unclaimed moneys covered by subsection (3) in relation to the ADI, as at the end of the year.

5 Paragraph 69(5A)(a)

Omit “specified in the statement, as”.

6 After subsection 69(7A)

Insert:

(7B) If an ADI satisfies the Treasurer that an amount paid by the ADI under subsection (5) exceeds the amount that should have been paid under that subsection, the Treasurer must refund the amount of the excess.

7 Subsection 69(8)

Omit “(7) and (7AA)”, substitute “(7), (7AA) and (7B)”.

Part 2—Application, transitional and savings provisions

8 Application provision

(1) The amendments made by Part 1 of this Schedule apply in relation to statements required to be delivered under section 69 of the Banking Act 1959 for the year ending on 31 December 2013, and future years.

(2) In addition, the amendments made by items 1 to 5 of this Schedule apply, and are taken always to have applied, in relation to statements required to be delivered under section 69 of the Banking Act 1959, as that section has effect under subitem 8(1) of Schedule 1 to the Treasury Legislation Amendment (Unclaimed Money and Other Measures) Act 2012.

(3) For the purposes of subitem (2), subsection 69(3) of the Banking Act 1959, as amended by this Schedule, has effect as if:

(a) the words “as at the end of the year” were omitted; and

(b) in paragraph (c) of that subsection, the words “the end of the year” were omitted and the words “the day after the applicable assessment day” were substituted.

Note: For paragraph (3)(a), subitem 8(1) of the Treasury Legislation Amendment (Unclaimed Money and Other Measures) Act 2012 has the effect that the words “as at the end of the applicable assessment day” were substituted instead.

9 Transitional provision—supplementary statement about unclaimed moneys relating to accounts not operated for 3 years

(1) This item applies if:

(a) unclaimed moneys relating to a person are paid by an ADI to the Commonwealth in connection with a statement required to be delivered under section 69 of the Banking Act 1959, as that section would have had effect under subitem 8(1) of Schedule 1 to the Treasury Legislation Amendment (Unclaimed Money and Other Measures) Act 2012; and

(b) the Treasurer is satisfied that the account to which the unclaimed moneys relate has been operated on either by deposit or withdrawal during the period:

(i) starting on the day after the applicable assessment day for the ADI referred to in subitem 8(4) of that Schedule; and

(ii) ending on the day the statement is delivered.

Note: Subitem 8(1) of Schedule 1 to the Treasury Legislation Amendment (Unclaimed Money and Other Measures) Act 2012 requires an additional statement to be delivered, and unclaimed moneys to be paid to the Commonwealth, in relation to accounts that have not been operated for 3 years as at 30 May 2013 or a day nominated by the ADI that falls between 31 December 2012 and 29 May 2013.

Treasurer to repay balance of account to ADI

(2) Upon written application from an ADI within 3 months after the commencement of this item, the Treasurer must repay to the ADI the unclaimed moneys that the Treasurer is satisfied represents the balance of the person’s account as at the end of the applicable assessment day for the ADI.

Note: See section 28 of the Financial Management and Accountability Act 1997 (appropriation of the Consolidated Revenue Fund for the purposes of repayments by the Commonwealth).

ADI to pay amounts to person to whom unclaimed moneys relate

(3) If an ADI is repaid an amount under subitem (2), the ADI must pay to the person an amount equal to any amounts deducted from the account in order for the ADI to pay the unclaimed moneys to the Commonwealth as mentioned in subitem (1).

Offence

(4) An ADI commits an offence if:

(a) the ADI is subject to a requirement under subitem (3); and

(b) the ADI contravenes the requirement.

Penalty: 50 penalty units.

Delegation

(5) The Treasurer may, by instrument in writing, delegate any of his or her functions or powers under this item to:

(a) ASIC; or

(b) a member of ASIC, or a staff member, within the meaning of the Australian Securities and Investments Commission Act 2001.

10 Savings provision—regulations

Regulations in force for the purposes of subsection 69(3) of the Banking Act 1959 immediately before the commencement of this item have effect on and after that commencement for the purposes of that subsection as substituted by this Schedule, including as that subsection has effect under subitem 8(2) of this Schedule.

[Minister’s second reading speech made in—

House of Representatives on 29 May 2013

Senate on 20 June 2013]

(142/13)

Overview

The Banking Amendment (Unclaimed Money) Act 2013 was enacted by the Parliament of Australia to address the issue of unclaimed moneys held by authorised deposit-taking institutions (ADIs) and to streamline the process of reporting and remitting these funds to the Commonwealth. This Act amends the Banking Act 1959 to introduce new requirements for ADIs to deliver statements of unclaimed moneys and remit payments to the Treasurer, thereby ensuring a more efficient and timely management of these funds. The policy objective of this Act is to ensure that unclaimed moneys are properly accounted for and managed, facilitating the eventual return of these funds to their rightful owners or, in the absence of such identification, to the Commonwealth. The Act came into effect on 28 June 2013, with certain provisions commencing on 1 July 2013. It mandates that ADIs deliver statements of all unclaimed moneys of not less than $100, excluding certain accounts, within three months after the end of each financial year. Additionally, ADIs are required to remit payments to the Commonwealth at the time of delivering these statements. The Act also provides mechanisms for refunds if an ADI overpays and imposes penalties for non-compliance by ADIs in relation to these obligations.

Scope and Application

The Banking Amendment (Unclaimed Money) Act 2013 is an Act that amends the Banking Act 1959 to introduce new requirements for authorised deposit-taking institutions (ADI) to report and pay unclaimed moneys to the Commonwealth. The Act applies to ADIs, which include banks, building societies, credit unions, and other entities authorised to take deposits under the Banking Act 1959. The Act imposes a requirement on ADIs to deliver a statement to the Treasurer detailing all unclaimed moneys of not less than $100 (or another prescribed amount) held in their accounts as at the end of each financial year, excluding those held in Retirement Savings Accounts and First Home Saver Accounts. Additionally, the ADI must pay the Commonwealth an amount equal to the total of these unclaimed moneys at the time of delivering the statement. The amendments apply to statements for the year ending 31 December 2013 and future years, and also retrospectively to statements under the amended section 69 of the Banking Act 1959. The Act does not specify any exclusions but does provide for the Treasurer to repay any overpaid unclaimed moneys to the ADI if the account has been operated within a specified period, with the ADI then required to repay the balance to the account holder. Offences and penalties are outlined for ADIs that fail to comply with these repayment requirements. The Act's provisions can be extended or modified by subordinate instruments, which may include regulations under subsection 69(3) of the Banking Act 1959.

Key Provisions

The Banking Amendment (Unclaimed Money) Act 2013 makes several key amendments to the Banking Act 1959, primarily focusing on the reporting and payment of unclaimed moneys by Authorised Deposit-taking Institutions (ADIs). Under section 69 of the Banking Act 1959, ADIs are now required to submit a statement to the Treasurer by the end of March each year, detailing all sums of unclaimed moneys of not less than $100, excluding those held in certain accounts such as Retirement Savings Accounts and First Home Saver Accounts. This statement must be accompanied by a payment to the Commonwealth, equivalent to the total value of these unclaimed monies as of the previous year's end (sections 69(3) and 69(5)). Additionally, if an ADI overpays the required amount, the Treasurer is mandated to refund the excess (section 69(7B)). The amendments apply to statements required to be delivered from the year ending 31 December 2013 onwards. The Act imposes several obligations on ADIs. Primarily, they must deliver an accurate statement of unclaimed monies to the Treasurer within three months of the end of each year. This statement must exclude specified account types and cover accounts that have been inactive for at least three years as of a specific assessment day. ADIs are also required to make the corresponding payment to the Commonwealth at the time of submission. In cases where an ADI repays unclaimed monies to the Commonwealth due to an account being reactivated, the ADI must subsequently repay the balance to the account holder. The Act further mandates that the Treasurer may delegate any functions or powers under this Act to the Australian Securities and Investments Commission or its members or staff. The Banking Amendment (Unclaimed Money) Act 2013 outlines specific consequences for non-compliance. An ADI that fails to pay the required amount of unclaimed monies to the Commonwealth, or that fails to repay the balance to the account holder after receiving a refund from the Treasurer, commits an offence. The penalty for such an offence is 50 penalty units, a monetary unit of account used in Australian legislation, equivalent to a specific monetary value that adjusts periodically. This penalty underscores the seriousness with which the Act regards compliance with its provisions.

Area of Law: Commercial Law; Finance & Banking Law
Instrument: Act
Concepts: Commencement Provisions; Regulatory Standards; Reporting & Disclosure Obligations; Offence Provisions

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.

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