Explanatory Memorandum
(Circulated by the authority of the Parliamentary Secretary to the Treasurer, the Hon Bernie Ripoll MP)General outline and financial impact
Amendments and transitional provisions
The Bill amends the Banking Act 1959 (Banking Act) to exempt reactivated accounts from being reported and transferred to the Commonwealth as unclaimed moneys and to allow the Commonwealth to provide refunds to authorised deposit-taking institutions (ADIs) if moneys are collected unnecessarily.
The Bill also provides a transition provision for unclaimed moneys collected under the transactional provision of the Treasury Legislation Amendment (Unclaimed Money and Other Measures) Act 2012 (TLA Act). Reactivated accounts collected under the supplementary statement and payment arrangement will be excluded from the statement and payment obligation. If ADIs have already reported and transferred the reactivated accounts, the Commonwealth will refund these moneys to ADIs and their owners upon application.
Date of effect: Amendments to the Banking Act and the transitional provisions will take effect the later of: the start of the day after Royal Assent or immediately after the commencement of item 1 of Schedule 1 to the TLA Act (that is 1 July 2013).
Financial impact: The financial impact from the Bill is likely to be low but is difficult to quantify due to insufficient data being available.
Human rights implications: This Bill does not raise any human rights issues.
Compliance cost impact: Low
Summary of regulation impact statement
Regulation impact on business
Impact: Low
Main points: Office of Best Practice Regulation has advised that a Regulation Impact Statement is not required.