INACTIVE bank deposits will flow into federal government coffers from May in a move Wannon MP Dan Tehan describes as a desperate push by a desperate Treasurer.
“It’s impossible to get in the way of Wayne Swan when he sees a bucketful of money,” the south-west Liberal MP told The Standard.
“Many people will be affected by this, including the elderly, the sick or anyone holding other people’s money in a trust or rental bonds.”
A legislation amendment which passed through Parliament last year gives the government access to bank accounts which have been inactive for three years. Previously it had been seven years.
Depositors who discover their money has been removed will have to apply to the Australian Securities and Investment Commission to reclaim it.
“My deep concern is it will start affecting people in the next six to 12 months as soon as the government acts on this,” Mr Tehan said.
“The Gillard government is yet to produce any reasonable justification for reducing the inactive period from seven to three years.”