Parliamentary Secretary to the Treasurer, Bernie Ripoll, encouraged all Australians to log on to MoneySmart website today to find any lost bank accounts they may have forgotten about.
Mr Ripoll said that measures introduced by the Gillard Government last year have made it easier to reunite people with unclaimed bank accounts sooner.
"There are literally hundreds of thousands of Australians with money in old bank accounts, which they have lost track of," he said.
"These measures will help reunite Australians with their lost money sooner, and protect them from being eroded by fees, charges and inflation."
Under the changes, the Government will pay interest on lost money transferred to the Australian Securities and Investments Commission, to preserve its real value until it can be reunited with its owners. Under the old rules, this did not occur.
Previously, lost money would sit with banks for seven years, and in many cases it would be hit with account keeping fees and receive no interest, thus eroding its value.
Mr Ripoll said it is far easier for people to track down lost bank accounts once they are transferred to ASIC and added to the online database at the MoneySmart website. This will now happen after three years of inactivity instead of seven. The money sits with ASIC until it is claimed by its rightful owner.
Currently, there is around $677 million waiting to be claimed.
ASIC also makes every effort to reunite people with their lost money by raising awareness through media campaigns and writing to possible owners. Last financial year, ASIC reunited 1,116 individuals and businesses with around $3.89 million by contacting them in this way.
"It's infinitely harder to search for lost monies if they are held privately by banks – if you've forgotten about your money and maybe moved house, you're hardly likely to remember which bank it's in," Mr Ripoll said.
"I encourage everyone to check the MoneySmart website today to see if they or a family member own any of the $677 million in existing unclaimed monies."
27 February 2013