CASH GRAB

Inactive bank accounts to be seized

• by: By Stephen McMahon
• From: News Limited Network
• February 26, 2013 11:58AM

 

 

The government will from May 31 be able to transfer all money from accounts that have not been used for three years into their own revenues. Picture: Luzio Grossi

HOUSEHOLDS face losing up to $109 million from their family savings as the Federal government moves to seize cash from inactive bank accounts.

After legislation was rushed through parliament, the government will from May 31 be able to transfer all money from accounts that have not been used for three years into their own revenues.

This will mean that accounts with anything from $1 upwards that have not had any deposit or withdrawals in the past three years will be transferred to the Australian Securities and Investment Commission.

The law is forecast to raise $109 million this year as inactive accounts for three years or more are raided by Treasury.

The money can be reclaimed from ASIC but the process can take months.

Experts warn this will have a negative impact on people that may have put money away in a special account for their children's education or decided to put an inheritance in a separate account for a rainy day.


The previous legislation allowed for bank accounts to remain inactive for up to 7 years before the money was transferred to ASIC.

Australian Bankers Association chief executive Steven Munchenberg said there is no benefit for consumers from the changes.

"It is very hard to see why this needed to be rushed through but there have been suggestions it was done more for the government's own financial circumstances rather than customers needs," he said.

Mr Munchenberg warned that unaware customers face having accounts frozen and could face months of delays trying to reclaim their won money from ASIC.

This cash grab comes as economists warn the government is on track to hand down a $15 billion budget deficit in May as company tax receipts collapse.

Before Christmas, Treasurer Wayne Swan junked the government's previously "rock solid" promise to produce a surplus in 2012-13.

The government had also been committed to surpluses in future financial years, too.

But despite the introduction of some tough cost-cutting measures, the latest research from global bank UBS forecasts the May budget will show a $12 billion black hole in revenues and cost overruns of about $3 billion. The biggest pain is coming from the expected $8 billion fall in taxes from the corporate sector.

Bathurst 12 hour Race 2013

LIQUI-MOLY
BATHURST 12 HOUR

THE ULTIMATE AUSSIE ENDURANCE RACE

THE WORLD RETURNS TO BATHURST

TWENTY-SIX years ago the world descended on Mount Panorama, Bathurst for the first time, when the famous circuit hosted Australia’s first – and to this point only – World Touring Car Championship round, in October 1987.
Back then drivers from 11 nationalities took part, at that stage the most in any race in the history of Bathurst.
Despite the post-race politics, protests and dramatics that occurred, the event showed the world that Bathurst was firmly on the international racing landscape.
In 2013 the world returns to Bathurst with the Liqui-Moly Bathurst 12 Hour – only this time in more numbers than ever before.
Drivers from 17 nationalities are listed within a field of 50 that will take the green flag at 7:00am on Sunday, February 10. Combined, they hail from six of the world’s seven continents with only Antarctica – not well known for its motor racing culture – not represented.
As was the case in 1987, New Zealanders make up the largest portion of international visitors, though large numbers from the United Kingdom, Scandinavia (Denmark, Finland and Sweden), Germany, Belgium and France are well represented.
International teams hail from New Zealand, Italy, Singapore, the United States, Germany, England, Belgium, Switzerland and France.
A record 20 brands will be featured when the on-track action commences, with the largest representation coming from three of the best-recognised endurance racing brands in the world.
Eight Porsche’s, Seven Audi R8’s and six BMWs are entered and have a clear numerical advantage over their rivals. The next most numerous brands – Ferrari, Lotus and Spanish brand SEAT – each have three entries.
Whilst Peugeot’s two-car team is the only official ‘works’ outfit, Mercedes-Benz / AMG, Porsche, BMW and Audi are all providing some form of manufacturer support to their respective entries.
Race week in Bathurst commences with the first vehicles arriving at the circuit today via Gibson Freight.
Most cars are already in the country, the Australian racing debut of the BMW Z4M GT3 set to be a popular one with the Team Engstler BMW attracting hundreds of spectators across the weekend at Trivet Motors BMW in Sydney, where the car was on display.
The Engstler entry is sponsored by Liqui-Moly, the event sponsor heavily promoting the vehicle’s appearance in Australia and giving away free event tickets to Sydney fans in the process.
Liqui-Moly officials reported a strong turnout of race fans keen to see the unique German entry.
Meanwhile, visiting drivers and teams have also begun to arrive in Australia ahead of the race this weekend.
Globe-trotting Englishman James Winslow splits his time between Australia, England and the United States and will join Peter Conroy and World Touring Car Champion Rob Huff in an Audi R8LMS this weekend.
Winslow is the reigning Australian Formula 3 champion and won the inaugural Formula 3 round – held at the Bathurst Motor Festival last year. He says the 12 Hour is rapidly gaining an international reputation.
“It’s a race that is talked about around the world now,” Said Winslow – who has one Liqui-Moly Bathurst 12 Hour start to his credit, having raced a Subaru in 2009.
“I get around to a lot of places and it’s exciting to see how the race has grown and the kind of driver and team that it’s now attracting. Bathurst is an iconic place and an amazing circuit and this is the kind of event that is going to showcase how great it is to the world – I can’t wait to get on track.”
Media activities commence Wednesday with on-track action commencing early Friday morning with the first of three practice sessions.
The long-range weather forecasts indicate a warm weekend with near perfect conditions for racing.
The 2013 Liqui-Moly Bathurst 12 Hour will be streamed live on the internet to a global audience, this year featuring the experienced Radio LeMans team as well. Three-hours of highlights are set to appear on SBS the following Sunday.