Unclaimed Money Bill

Second Reading

The Hon. R.I. LUCAS (Treasurer) (18:08): I move:

That this bill be now read a second time.

I seek leave to have the second reading explanation and the detailed explanation of clauses inserted in Hansard without my reading them.

Leave granted.

Mr President, I rise to introduce the Unclaimed Money Bill 2021.

This Bill repeals and replaces the Unclaimed Moneys Act 1891. It modernises and simplifies administration of unclaimed money in South Australia, as agreed to as part of the Commonwealth Project Agreement for Small Business Regulatory Reform, with additional reforms proposed by the Department of Treasury and Finance.

As part of the Commonwealth Project Agreement for Small Business Regulatory Reform, the Government committed to a number of measures aimed at collectively reducing the regulatory burden of complying with the Act on small business. The Commonwealth has agreed to provide an estimated financial contribution to South Australia of $0.6m upon successful delivery of the agreed measures.

The Bill also proposes additional measures identified by the Department of Treasury and Finance as measures to improve the administration of unclaimed money.

The first measure committed to an increase in the threshold of unclaimed money that can be lodged by business with the Department of Treasury and Finance. Currently business must lodge unclaimed money greater than ten dollars with the Department of Treasury and Finance. This threshold will increase from ten dollars to fifty dollars, enabling business to adopt a pragmatic approach to the management of multiple low value amounts of unclaimed money.

The second and third measures committed to are the removal of the requirement for business to advertise unclaimed money in the South Australian government gazette prior to having to lodge it with the Department of Treasury and Finance, and no longer having to hold the money for nine years, prior to transferring it to the Department of Treasury and Finance.

Currently, after holding unclaimed money for a period of seven years, a business is required to publish a register of unclaimed money in the South Australian Government Gazette, during the January of the seventh year of having held the money. Business must continue to advertise their unclaimed money register in the gazette for an additional two years, and after having held the money for nine years in total, may then transfer the money to the Department of Treasury and Finance. There is a cost borne by business for advertising in the gazette, which is levied per name in the register.

Under the proposed Bill, business will now be able to provide unclaimed money directly to the Department of Treasury and Finance, after having held the money for seven years without needing to advertise in the government gazette. Once the unclaimed money has been transferred to the Department, the information provided will be made available on the Department of Treasury and Finance unclaimed money database.

The Bill also proposes to provide business with the option to publish the unclaimed money it holds on its own website or in the Department of Treasury and Finance unclaimed money database, including the records of amounts not yet eligible for transfer to the Department of Treasury and Finance. This change will provide business with an additional avenue to locate claimants in addition to providing claimants with centralised searching capacity.

The database is freely available on the Department of Treasury and Finance website for members of the public to access and there will be no cost to business for lodging money with the Department.

The Bill introduces a 25-year cap on the ability to make a claim for unclaimed money, with a 5-year transition period upon commencement of the Act. Whilst currently there is no time limit on claims, there are a large number of low value unclaimed money amounts held by the Department which date back to 1946. Reducing the number of entries in the unclaimed money database will assist in simplifying administration through optimising the performance of the unclaimed money database.

Further, in line with the new fifty-dollar lodgement threshold for business, the Bill also includes a fifty-dollar minimum claim limit. Again, a five year transition period will be provided for any existing claims less than fifty dollars. Given that it is currently estimated to cost more in administrative costs to process claims which are fifty dollars or less in value, than the actual value of the claim, this change will likely to also reduce administrative costs.

Other minor changes include the removal of the requirement for the public to pay a fee of twenty cents to access a business' register of unclaimed money. Penalties to be imposed where business fail to keep a register have been standardised with other legislation and there is now also a provision for the Treasurer to delegate his/her power under the Act.

As a matter of house-keeping, the Bill adopts terminology consistent with contemporary business practice, with the language of the Act having been modernised.

In preparation of this Bill, the Department of Treasury and Finance has consulted with both business and the public.

Upon passing of the Bill, the Department of Treasury and Finance will commence a review of its unclaimed money database to provide an improved user experience for both business and claimants.

I seek opposition support for this Bill which will seek to improve the administration of unclaimed money in South Australia for businesses, claimants and the government.

Explanation of Clauses

1—Short title

2—Commencement

These clauses are formal.

3—Interpretation

This clause sets out definitions required for the purposes of the measure.

Unclaimed money is defined to mean any sum of money (including, but not limited to, principal, interest, dividends, bonuses and profits) that—

has come into the possession of a corporation by virtue of a transaction with the owner of the money occurring in South Australia; and

has been held by the corporation for at least 5 years; and

in respect of which there has been no claim by the owner against the corporation.

4—Register of unclaimed money

This clause requires corporations to maintain a register of unclaimed money. A register is to be in a form determined by the Treasurer and made available on the corporation's website or on a website approved by the Minister. The public must have access to the website free of charge. A corporation must, by 31 January each year, enter into the register the particulars determined by the Treasurer relating to unclaimed money exceeding the prescribed amount held by the corporation as at 1 January in that year.

The following corporations are not required to maintain a register:

a corporation established on a non-profit basis;

an ADI;

a superannuation provider within the meaning of the Superannuation (Unclaimed Money and Lost Members) Act 1999 of the Commonwealth;

a corporation of a prescribed kind.

5—Unclaimed money to be paid to Treasurer

Under this clause, unclaimed money that has not been paid by a corporation to the owner of the money before the second anniversary of the day on which notice of the unclaimed money first appeared on a register of unclaimed money must be paid by the corporation to the Treasurer within 4 months after that anniversary. Any such money paid to the Treasurer is to be credited to the consolidated account.

6—Other money may be paid to Treasurer

A person in possession of money of an amount not less than the prescribed amount may, if the person has been in possession of the money for more than one year, and if the owner of the money can't be found, pay the money to the Treasurer. Money paid to the Treasurer under this clause is to be credited to the Consolidated Account.

7—Treasurer may pay money to lawful claimant

This clause sets out the procedure by which the Treasurer may pay money that has been paid to the Treasurer under the Act to a person who claims to be the owner of the money.

8—Treasurer's power to require information

Under this clause, the Treasurer may, at any time, examine accounts of a corporation relating to unclaimed money referred to in the corporation's register of unclaimed money. The Treasurer may require a person to provide information and also require that the information be verified by the person by statutory declaration.

9—Exemptions

This clauses authorises the Treasurer to exempt a specified person, or class of persons, from the application of the Act or particular provisions of the Act. An exemption may be absolute or subject to conditions.

10—Delegation

This clause authorises the Treasurer to delegate a power or function under the Act—

to a particular person or body; or

to the person for the time being holding or acting in a particular office or position.

11—Continuing offence

This clause provides for the imposition of additional penalties where a person is convicted of an offence against a provision of the Act in respect of an act or omission that is continuing.

12—Regulations

This clause authorises the making of regulations that are necessary or expedient for the purposes of the measure.

Schedule 1—Related amendments and repeal

Part 1—Preliminary

1—Amendment provisions

This clause is formal.

Part 2—Amendment of Correctional Services Act 1982

2—Amendment of section 31—Prisoner allowances and other money

The amendment made by this clause is consequential.

Part 3—Amendment of Criminal Law (Clamping, Impounding and Forfeiture of Vehicles) Act 2007

3—Amendment of section 20—Disposal of vehicles

The amendment made by this clause is consequential.

Part 4—Amendment of Emergency Services Funding Act 1998

4—Amendment of section 20—Sale of land for non-payment of levy

The amendment made by this clause is consequential.

Part 5—Amendment of Fines Enforcement and Debt Recovery Act 2017

5—Amendment of section 42—Power to dispose of uncollected seized vehicles

The amendments made by this clause are consequential.

Part 6—Amendment of Ground Water (Qualco-Sunlands) Control Act 2000

6—Amendment of section 59—Sale of land for non-payment

The amendment made by this clause is consequential.

Part 7—Amendment of Irrigation Act 2009

7—Amendment of section 52—Sale of land for non-payment of charges

The amendment made by this clause is consequential.

Part 8—Amendment of Landscape South Australia Act 2019

8—Amendment of section 86—Sale of land for non-payment of a levy

9—Amendment of section 158—Effect of cancellation of water management authorisations

The amendments made by these clauses are consequential.

Part 9—Amendment of Local Government Act 1999

10—Amendment of section 184—Sale of land for non-payment of rates

11—Amendment of Schedule 1B—Building upgrade agreements

The amendments made by these clauses are consequential.

Part 10—Amendment of Native Vegetation Act 1991

12—Amendment of section 33I—Sale of land for non-payment

The amendment made by this clause is consequential.

Part 11—Amendment of Renmark Irrigation Trust Act 2009

13—Amendment of section 54—Sale of land for non-payment of charges

The amendment made by this clause is consequential.

Part 12—Amendment of South Australian Water Corporation Act 1994

14—Amendment of section 18D—Power to sell land

The amendment made by this clause is consequential.

Part 13—Repeal of Unclaimed Moneys Act 1891

15—Repeal of Act

This clause repeals the Unclaimed Moneys Act 1891.

Debate adjourned on motion of Hon. I.K. Hunter.