Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Ralph Willis, MP)Chapter 9 - Inactive accounts
9.1 This chapter explains the circumstances where an account is considered to be inactive and the Commissioner may transfer the balance of the account to the Consolidated Revenue Fund and register the account on the Insurance and Superannuation Commission's register of unclaimed money.
Explanation of the provisions
9.2 Where there has been no amounts credited to a particular account during a period of 10 consecutive financial years the Commissioner must determine that the account is inactive.
9.3 Where an account is inactive the Commissioner will advise the Insurance and Superannuation Commissioner. The Commissioner of Taxation shall notify the Insurance and Superannuation Commission (ISC) of the details of the account and this may include the individual's tax file number where known. The ISC will register the details of that account on the register of unclaimed money. An individual's tax file number will not be available to anyone except the ISC.
9.4 The balance of that particular account shall be debited from the Superannuation Holding Accounts Reserve and credited to the Consolidated Revenue Fund [Clause 76 of Part 9]
9.5 The policy behind the inactive accounts provisions is to enable all inactive accounts to be registered on the Insurance and Superannuation Commission's register of unclaimed money. This will make it easier for people looking for old accounts to search the one register. Where a person has an amount on the register, that person may request the Insurance and Superannuation Commissioner to pay them that amount. The Insurance and Superannuation Commissioner may then obtain that amount from the Consolidated Revenue Fund and pay the person that amount. [Clauses 76 and 77 of Part 9]
Example of an inactive account
9.6 Peter, the executor of Robert's estate, is in the process of finalising the estate. Peter is aware that Robert worked as a casual fruit picker in his younger days but has no details of Robert's employers. In exercising his duties as trustee Peter makes enquiries with the ISC to see if Robert had any money that had not been claimed. The ISC discover's that there is an amount of $823 on the register of unclaimed money. The ISC may then pay that amount to Peter as the executor of Robert's estate.