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14 November, 2017
An overview of the obligations of holders of unclaimed money.
Each State and Territory in Australia has legislation imposing requirements on certain entities who hold unclaimed money. Generally, where money remains unclaimed for a specified period of time, an entity must remit that money to a relevant State or Territory authority and maintain accurate records of such unclaimed money. There are penalties for non-compliance with these obligations.
What is unclaimed money?
Generally, unclaimed money refers to money that remains owing and unclaimed with no activity relating to the money for a specified period of time.
The definition of unclaimed money varies between each State and Territory.
Please click on the table to enlarge.
Certain types of unclaimed money (eg, superannuation benefits, money held in Authorised Deposit-taking Institutions and money held by liquidators) are dealt with under different regimes.
What records must be kept in respect of unclaimed monies?
Each jurisdiction imposes different requirements upon entities which are required to lodge and pay unclaimed monies with a State or Territory authority.
Generally, where entities are required to maintain a register and/or lodge details of unclaimed money with the relevant authority, they will be required to include:
- the name, last known address, date of birth, and ABN or ACN (if relevant) of the owner of the unclaimed money;
- a business reference for the amount of unclaimed money;
- the gross amount of unclaimed money; and
- a description of the unclaimed money.
What happens if I do not comply with my obligations?
The relevant State or Territory authority may impose penalties for non-compliance. Interest may be imposed in addition to any penalties.
Penalties for non-compliance may be significant. For example, in Victoria the penalty payable in respect of a default is 25% of the amount payable, which may be increased to 75% where the Registrar is satisfied that the default was caused wholly or partly by the intentional disregard of the Act. Penalties may also be imposed for failing to lodge returns within the specified time frame or failing to keep adequate records. In some jurisdictions, however, voluntary disclosure of non-compliance may entitle entities to a reduction in penalty of up to 80%.
Company officers may also be personally liable where they provide false or misleading information to the relevant State or Territory authority.
For further information, please contact:
Geoffrey Mann, Partner, Ashurst
geoffrey.mann@ashurst.com
