topic Re: THEFT by a failed Labor Policy in Community Spirit

THEFT by a failed Labor Policy

nero_bolt — Tue, 10 Jun 2014 02:02:49 GMT

This is simply theft of your money this policy that labor introduced

Government grabs $360 million from idle household bank accounts

THE federal government has seized a record $360 million from household bank accounts that have been dormant for just three years, prompting outrage in some quarters amid complaints that pensioners and retirees have lost deposits.

Figures from the Australian Security and Investments Commission (ASIC) show almost $360 million was collected from 80,000 inactive accounts in the year to May under new rules introduced by Labor.

The new rules lowered the threshold at which the government is allowed to snatch funds from accounts that remain idle from seven years to three years.

Pensioners and others saving for a rainy day have reported trying to access their savings only to discover their money had been seized by the government because it had been dormant for three years or more.

Australian Bankers Association chief executive Steven Munchenberg said the legislation was a ''rushed'' Labor budget-boosting exercise that angered customers whose accounts were not lost or forgotten.

Connie Franze, 68, and her disabled son, Vince, 45, are trying to reclaim their life savings of more than $12,000 that was taken by the government last June.

''I saved for 45 years … It was my carer's pension and his disability pension,'' said the Sydney retiree.

She opened the Commonwealth Bank account 45 years ago, squirrelling away a small portion of her $50-a-week earnings from growing plants. The pair were saving for a trip to Italy to visit her mother.

''She was 100 years old. I wanted to take money out. They wouldn't give me the money … [and then] my mother died this year. The last time I saw her was 20 years ago.''

Re: THEFT by a failed Labor Policy

cherry*135 — Tue, 10 Jun 2014 02:07:36 GMT

This part is very important:

"The money goes into the government's consolidated funds, but can be reclaimed at any time, by providing proof of identity to the bank, which reclaims the money via ASIC. The time taken for a return can be up to two months."

From the link in the opening post

Re: THEFT by a failed Labor Policy

azureline** — Tue, 10 Jun 2014 02:09:50 GMT

She left it a bit late to go visit her mum didn't she?

Re: THEFT by a failed Labor Policy

i-need-a-martini — Tue, 10 Jun 2014 02:10:46 GMT

@am*3 wrote:
This part is very important:

"The money goes into the government's consolidated funds, but can be reclaimed at any time, by providing proof of identity to the bank, which reclaims the money via ASIC. The time taken for a return can be up to two months."

From the link in the opening post

Ah well Am - that little important bit of information wouldn't suit the agenda would it?

Re: THEFT by a failed Labor Policy

i-need-a-martini — Tue, 10 Jun 2014 02:14:03 GMT

And it should also be noted that: The Treasury now looks poised to lengthen the threshold to five years in the face of fierce lobbying from the banking industry.

Well of course the banks are annoyed - they lose money out of the policy.

So isn't it just like the Liberal Govt to change the policy back so that the money gets squirreled away by the banks to add to their profits instead of being invested by the government.

Re: THEFT by a failed Labor Policy

debra9275 — Tue, 10 Jun 2014 02:24:18 GMT

@am*3 wrote:
This part is very important:

"The money goes into the government's consolidated funds, but can be reclaimed at any time, by providing proof of identity to the bank, which reclaims the money via ASIC. The time taken for a return can be up to two months."

From the link in the opening post

it's a policy I don't like but at least people can get it returned with proof of identity.

the Abbott govt. has been unwinding policies and regulations for some months now, why haven't they uwound this one I wonder??

Re: THEFT by a failed Labor Policy

cherry*135 — Tue, 10 Jun 2014 02:25:54 GMT

Another valid point:

Consumer group Choice said it supported the three-year provision because high bank fees could ''eat away'' at inactive accounts.

ASIC said the chief purpose of the laws was to reunite people with lost accounts before funds were eroded by fees, charges and inflation. ''Australians have recovered over $470 million since 2009,'' an ASIC spokesman said. ''We hold the records … and we make them publicly available for anyone to search any time on our MoneySmart website

Read more: http://www.smh.com.au/national/canberra-reaps-360m-from-inactive-bank-accounts-20140609-39t8p.html#ixzz34CPWpVOY

Re: THEFT by a failed Labor Policy

cherry*135 — Tue, 10 Jun 2014 02:34:14 GMT

"This is simply theft of your money this policy that labor introduced "

Did Labor introduce this policy?

They lowered the threshold on the existing policy from 7 years to 3 years.

":Nearly $360 million from 80,000 accounts was funnelled into government coffers in the year to May after Labor lowered the threshold,

The Treasury now looks poised to lengthen the threshold to five years in the face of fierce lobbying from the banking industry."

Of course the banks would still want to have these funds in inactive accounts in their coffers.

Re: THEFT by a failed Labor Policy

cherples — Tue, 10 Jun 2014 03:08:21 GMT

If they were putting in money from the pension, as claimed, it would not be an inactive account and not be subject to the rules.

Are these real people of theoretical people for the sake of the story?

Re: THEFT by a failed Labor Policy

boris1gary — Tue, 10 Jun 2014 03:13:55 GMT

just another ridiculous headline, "theft" pfffft.

Re: THEFT by a failed Labor Policy

i-need-a-martini — Tue, 10 Jun 2014 03:35:07 GMT

Typical to take an innocuous story that is badly researched and poorly written and turn it into a "STOP! LABOR THEFT" story.

Quite frankly if anyone has a bank account that they have forgotten about or haven't accessed for a while, best that it sits with the government earning interest than sitting in the bank whilst they fleece you with fees and costs.

Re: THEFT by a failed Labor Policy

boris1gary — Tue, 10 Jun 2014 03:37:41 GMT

Owners are paid interest on lost money based on the percentage change in the Consumer Price Index, payable from July 1 last year. No tax has to be paid on the interest earned.

Read more: http://www.smh.com.au/federal-politics/political-news/pensioners-lose-savings-in-government-cash-grab-20140609-39t7p.html#ixzz34Chs4BMo

Re: THEFT by a failed Labor Policy

pct001wine — Tue, 10 Jun 2014 05:45:17 GMT

So you would actually be better off if you left your account inactive for 3 years, then it would accrue non-taxable interest @ CPI rates ... then provide the usual proof of identity at a later date .... voila ! savings not eroded by bank fees.

Re: THEFT by a failed Labor Policy

boris1gary — Tue, 10 Jun 2014 05:49:31 GMT

@pct001wine wrote:
@So you would actually be better off if you left your account inactive for 3 years, then it would accrue non-taxable interest @ CPI rates ... then provide the usual proof of identity at a later date .... voila ! savings not eroded by bank fees.

yes, unless of course you wanted to run around accusing the previous Labor Government of theft. "theft"...lucky no one has said it about hockey, he would sue for hurting his feelings.

Re: THEFT by a failed Labor Policy

gewens — Tue, 10 Jun 2014 06:09:42 GMT

Hello, everyone. Remember to talk in a courteous way for the harmony of this forum. Thanks. 🙂

Re: THEFT by a failed Labor Policy

azureline** — Tue, 10 Jun 2014 08:36:17 GMT

I have found $350 that was sitting with that dept from 1971

Re: THEFT by a failed Labor Policy

lurker172602 — Tue, 10 Jun 2014 08:48:58 GMT

So it hadn't been stolen then az? That's good 😉

Re: THEFT by a failed Labor Policy

azureline** — Tue, 10 Jun 2014 08:49:29 GMT

No, not stolen but had the bank had it, it would have been all swallowed up in fees

Re: THEFT by a failed Labor Policy

freddie*rooster — Tue, 10 Jun 2014 08:54:07 GMT

Party @ Az's

Re: THEFT by a failed Labor Policy

cherry*135 — Tue, 10 Jun 2014 09:13:41 GMT