TREASURY LEGISLATION AMENDMENT (UNCLAIMED MONEY AND OTHER MEASURES) BILL 2012

i Treasury Legislation Amendment (Unclaimed Money and Other Measures) Bill 2012 No.

, 2012

Contents

1 Short

title

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2 Commencement

.................................................................................

3 Schedule(s)

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Schedule 1--Banking

Banking Act 1959

Schedule 2--First Home Saver Accounts

First Home Saver Accounts Act 2008

Schedule 3--Life insurance

Life Insurance Act 1995

Schedule 4--Superannuation

Superannuation (Unclaimed Money and Lost Members) Act 1999

Schedule 5--Corporations

Australian Securities and Investments Commission Act 2001

Corporations Act 2001

Treasury Legislation Amendment (Unclaimed Money and Other Measures) Bill 2012 No. ,

2012 1

A Bill for an Act to amend the law relating to

unclaimed money, and for other purposes

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Treasury Legislation Amendment

(Unclaimed Money and Other Measures) Act 2012.

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.

2 Treasury Legislation Amendment (Unclaimed Money and Other Measures) Bill 2012

No. , 2012

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.

2. Schedules 1, 2,

3, 4 and 5

The day after this Act receives the Royal

Assent.

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repealed as set out in the applicable items in the Schedule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.

Banking Schedule 1

Treasury Legislation Amendment (Unclaimed Money and Other Measures) Bill 2012 No. ,

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Schedule 1--Banking

Banking Act 1959

1 Subsection 69(1)

Omit "not less than 7 years.", substitute:

not less than:

(a) 3 years; or

(b) if a greater number of years is specified in the regulations--

that greater number of years;

beginning:

either by deposit or withdrawal; or

(d) if another time is ascertained in accordance with the

regulations--at that other time.

2 After subsection 69(1)

Insert:

(1AA) Subsection (1) has effect subject to subsections (1A), (1B), (1C),

(1D) and (1E).

3 Paragraphs 69(1A)(b) and (c)

Repeal the paragraphs, substitute:

(b) the account has not been operated on either by deposit or

withdrawal for a period (the inactive period) of not less than:

(i) 3 years; or

(ii) if a greater number of years is specified in the

regulations--that greater number of years;

beginning:

(iii) at the most recent time when the account was operated

on either by deposit or withdrawal; or

(iv) if another time is ascertained in accordance with the

regulations--at that other time; and

(i) 3 years; or

Schedule 1 Banking

4 Treasury Legislation Amendment (Unclaimed Money and Other Measures) Bill 2012

No. , 2012

(ii) if a greater number of years is specified in the

regulations--that greater number of years;

beginning at the start of the inactive period, the ADI has been

unable to contact the owner about those farm management

deposits after making reasonable efforts.

4 After subsection 69(1A)

Insert:

(1B) However, moneys to the credit of an account specified in the

regulations are unclaimed moneys if, and only if, the conditions

specified in the regulations are satisfied.

Note:

For specification by class, see subsection 13(3) of the Legislative

Instruments Act 2003.

(1C) However, deposits specified in the regulations are unclaimed

moneys if, and only if, the conditions specified in the regulations

are satisfied.

Note:

For specification by class, see subsection 13(3) of the Legislative

Instruments Act 2003.

(1D) Subsection (1) does not apply to an account specified in the

regulations.

Note:

For specification by class, see subsection 13(3) of the Legislative

Instruments Act 2003.

(1E) Subsections (1) and (1A) do not apply to a deposit specified in the

regulations.

Note:

For specification by class, see subsection 13(3) of the Legislative

Instruments Act 2003.

5 After subsection 69(7)

Insert:

(7AA) If unclaimed moneys are paid to an ADI under subsection (7) on or

after 1 July 2013:

(a) the Commonwealth must also pay to the ADI the amount of

interest (if any) worked out in accordance with the

regulations; and

(b) the ADI must pay that amount to the person.

Banking Schedule 1

Treasury Legislation Amendment (Unclaimed Money and Other Measures) Bill 2012 No. ,

2012 5

(7AB) Regulations made for the purposes of paragraph (7AA)(a) may

involve different rates of interest for different periods over which

the interest accrues. For this purpose, rate includes a nil rate.

(7AC) Interest under paragraph (7AA)(a) does not accrue in relation to a

period before 1 July 2013.

6 Paragraph 69(7A)(a)

After "(7)", insert "or (7AA)".

7 Subsection 69(8)

Omit "subsection (7)", substitute "subsections (7) and (7AA)".

8 Transitional--section 69 of the Banking Act 1959

Subsection 69(3) of the Banking Act 1959 has effect, in relation to the

year ending on 31 December 2012, as if the reference in that subsection

to 3 months were a reference to 4 months.

Schedule 2 First Home Saver Accounts

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Schedule 2--First Home Saver Accounts

First Home Saver Accounts Act 2008

1 Section 17A

Before "The", insert "(1)".

2 Paragraph 17A(a)

Omit "at least 7 years; and", substitute:

least:

(i) 3 years; or

(ii) if a greater number of years is specified in the

regulations--that greater number of years; and

3 At the end of section 17A

Add:

(2) Subsection (1) has effect subject to subsections (3) and (4).

(3) The regulations may provide that the balance of a specified FHSA

held by a person is unclaimed money in relation to the person if,

and only if, the conditions specified in the regulations are satisfied.

Note:

For specification by class, see subsection 13(3) of the Legislative

Instruments Act 2003.

(4) Subsection (1) does not apply to an FHSA specified in the

regulations.

Note:

For specification by class, see subsection 13(3) of the Legislative

Instruments Act 2003.

4 After subsection 51C(1)

Insert:

(1A) If ASIC pays an amount to an FHSA provider under subsection (1)

on or after 1 July 2013, ASIC must also pay to the FHSA provider

the amount of interest (if any) worked out in accordance with the

regulations.

First Home Saver Accounts Schedule 2

Treasury Legislation Amendment (Unclaimed Money and Other Measures) Bill 2012 No. ,

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(1B) Regulations made for the purposes of subsection (1A) may involve

different rates of interest for different periods over which the

interest accrues. For this purpose, rate includes a nil rate.

(1C) Interest under subsection (1A) does not accrue in relation to a

period before 1 July 2013.

5 Paragraph 51C(2)(a)

After "subsection (1)", insert "or (1A)".

Schedule 3 Life insurance

8 Treasury Legislation Amendment (Unclaimed Money and Other Measures) Bill 2012

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Schedule 3--Life insurance

Life Insurance Act 1995

1 After subsection 216(7)

Insert:

(7A) If an amount is paid to a company under subsection (7) on or after

1 July 2013, the Treasurer must also:

(a) cause to be paid to the company the amount of interest (if

any) worked out in accordance with the regulations; and

(b) direct the company to pay the amount to the person specified

in the direction.

(7B) Regulations made for the purposes of paragraph (7A)(a) may

involve different rates of interest for different periods over which

the interest accrues. For this purpose, rate includes a nil rate.

(7C) Interest under paragraph (7A)(a) does not accrue in relation to a

period before 1 July 2013.

2 Subsection 216(9)

After "(7)(d)", insert "or (7A)(b)".

3 Subsection 216(15) (paragraph (c) of the definition of

unclaimed money)

Repeal the paragraph, substitute:

not claimed within:

(i) 3 years; or

(ii) if a greater number of years is specified in the

regulations--that greater number of years;

after the maturity date of the policy; and

Superannuation Schedule 4

Treasury Legislation Amendment (Unclaimed Money and Other Measures) Bill 2012 No. ,

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Schedule 4--Superannuation

Superannuation (Unclaimed Money and Lost Members) Act

1999

1 After subsection 17(2AA)

Insert:

(2AB)

If:

(a) the Commissioner makes a payment under subsection (2) on

or after 1 July 2013 to a fund, a legal personal representative

or a person; and

(b) the payment is in accordance with paragraph (2)(a), (c) or

(d);

the Commissioner must also pay to the fund, legal personal

representative or person the amount of interest (if any) worked out

in accordance with the regulations.

Note:

Money for payments under subsection (2AB) is appropriated by

section 16 of the Taxation Administration Act 1953.

(2AC)

If:

(a) the Commissioner makes a payment under subsection (2) on

or after 1 July 2013 to a death beneficiary; and

(b) the payment is in accordance with paragraph (2)(b);

the Commissioner must also pay to the death beneficiary the

amount of interest (if any) worked out in accordance with the

regulations.

Note:

Money for payments under subsection (2AC) is appropriated by

section 16 of the Taxation Administration Act 1953.

(2AD) Regulations made for the purposes of subsection (2AB) or (2AC)

may prescribe different rates for different periods over which the

interest accrues. For this purpose, rate includes a nil rate.

(2AE) Interest under subsection (2AB) or (2AC) does not accrue in

relation to a period before 1 July 2013.

2 After subsection 20H(2)

Insert:

Schedule 4 Superannuation

10 Treasury Legislation Amendment (Unclaimed Money and Other Measures) Bill 2012

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(2AA) If the Commissioner makes a payment under subsection (2) on or

after 1 July 2013, the Commissioner must also pay to the person,

fund or legal personal representative the amount of interest (if any)

worked out in accordance with the regulations.

(2AB) Regulations made for the purposes of subsection (2AA) may

prescribe different rates for different periods over which the

interest accrues. For this purpose, rate includes a nil rate.

3 Subsection 20H(2A)

Omit "The", substitute "If the Commissioner makes a payment under

subsection (2) before 1 July 2013, the".

4 Paragraph 20H(3)(b)

After "under subsection", insert "(2AA) or".

5 Paragraph 24B(1)(b)

Omit "$200", substitute "$2,000".

6 Paragraph 24B(2)(b)

Omit "5 years", substitute "12 months".

7 After subsection 24G(3)

Insert:

(3A)

If:

(a) the Commissioner makes a payment under subsection (2) on

or after 1 July 2013 to a fund, a legal personal representative

or a person; and

(b) the payment is in accordance with paragraph (2)(a), (c) or

(d);

the Commissioner must also pay to the fund, legal personal

representative or person the amount of interest (if any) worked out

in accordance with the regulations.

Note:

Money for payments under subsection (3A) is appropriated by

section 16 of the Taxation Administration Act 1953.

(3B)

If:

(a) the Commissioner makes a payment under subsection (2) on

or after 1 July 2013 to a death beneficiary; and

Superannuation Schedule 4

Treasury Legislation Amendment (Unclaimed Money and Other Measures) Bill 2012 No. ,

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(b) the payment is in accordance with paragraph (2)(b);

the Commissioner must also pay to the death beneficiary the

amount of interest (if any) worked out in accordance with the

regulations.

Note:

Money for payments under subsection (3B) is appropriated by

section 16 of the Taxation Administration Act 1953.

(3C) Regulations made for the purposes of subsection (3A) or (3B) may

prescribe different rates for different periods over which the

interest accrues. For this purpose, rate includes a nil rate.

(3D) Interest under subsection (3A) or (3B) does not accrue in relation

to a period before 1 July 2013.

Schedule 5 Corporations

12 Treasury Legislation Amendment (Unclaimed Money and Other Measures) Bill 2012

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Schedule 5--Corporations

Australian Securities and Investments Commission Act 2001

1 Division 1 of Part 8

Repeal the Division.

Corporations Act 2001

2 Section 9 (definition of Companies and Unclaimed Moneys

Special Account)

Repeal the definition.

3 Section 9 (paragraph (d) of the definition of unclaimed

property)

Omit "definition; or", substitute "definition.".

4 Section 9 (paragraph (e) of the definition of unclaimed

property)

Repeal the paragraph.

5 Subsection 1339(2)

Repeal the subsection, substitute:

(2) If property (other than money) becomes unclaimed property, ASIC

must, on behalf of the Commonwealth, sell or dispose of the

property as ASIC thinks fit.

6 Subsections 1341(1) and (2)

Repeal the subsections, substitute:

(1)

If:

(a) unclaimed property is or was held by ASIC; and

(b) the unclaimed property is an amount of money; and

(d) ASIC is satisfied that the person is entitled to that amount;

ASIC must:

Corporations Schedule 5

Treasury Legislation Amendment (Unclaimed Money and Other Measures) Bill 2012 No. ,

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(e) pay the person an amount equal to that amount; and

(f) do so out of money appropriated by the Parliament for the

purposes of this section.

(2)

If:

(a) ASIC has, under subsection 1339(2), sold or disposed of

unclaimed property; and

(b) the amount of the proceeds is or was held by ASIC; and

(d) ASIC is satisfied that the person is entitled to that amount;

ASIC must:

(e) pay the person an amount equal to that amount; and

(f) do so out of money appropriated by the Parliament for the

purposes of this section.

7 Subsection 1341(3)

After "subsection", insert "(1) or".

8 After subsection 1341(3)

Insert:

(3A) If ASIC pays an amount to a person under subsection (1) or (2) on

or after 1 July 2013, ASIC must:

(a) also pay to the person the amount of interest (if any) worked

out in accordance with the regulations; and

(b) do so out of money appropriated by the Parliament for the

purposes of this section.

(3B) Regulations made for the purposes of paragraph (3A)(a) may

prescribe different rates for different periods over which the

interest accrues. For this purpose, rate includes a nil rate.

(3C) Interest under subsection (3A) does not accrue in relation to a

period before 1 July 2013.

Commonwealth of Australia Bills

TREASURY LEGISLATION AMENDMENT (UNCLAIMED MONEY AND OTHER MEASURES) BILL 2012