House of Representatives

Explanatory Memorandum

(Circulated by the authority of the Deputy Prime Minister and Treasurer, the Hon Wayne Swan MP)

General outline and financial impact

OUTLINE

The Bill makes amendments to the Banking Act 1959 , First Home Saver Accounts Act 2008 , Life Insurance Act 1995 , Superannuation (Unclaimed Money and Lost Members) Act 1999 , Australian Securities and Investments Commission Act 2001 , and Corporations Act 2001 to give effect to the unclaimed moneys measures announced in the 2012-13 Mid-Year Economic and Fiscal Outlook.

The Bill will bring forward the time at which money is recognised under the relevant law as lost or unclaimed, helping to reunite people with their money earlier, and will protect superannuation account balances transferred to the Australian Taxation Office (ATO) from erosion by fees and charges.

The Bill will for the first time enable the payment of interest on unclaimed moneys paid.

Date of effect: Sections 1 to 3 commence the day of Royal Assent. Schedule 1 to 5 commence the day after Royal Assent.

Proposal announced: The measures were announced in the 2012-13 Mid-Year Economic and Fiscal Outlook.

Financial impact: Measures in Schedules 1, 2 and 3 are estimated to provide savings to the Budget of $92.3 million over the forward estimates period; measures in Schedule 4 are estimated to provide savings to the Budget of $675.2 million over the forward estimates period; and measures in Schedule 5 are estimated to provide savings to the Budget of $118.5 million over the forward estimates period.

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:

• OBPR have advised that a Regulation Impact Statement is not required.