This surge highlights the growing volume of dormant funds lying untouched in various financial institutions and investment vehicles.
The ‘unclaimed money’ list maintained by Inland Revenue encompasses amounts of at least $100 that have remained dormant in banks, finance companies, investment funds, or with legal and financial professionals for extended periods.
Typically, after five years of unsuccessful attempts to locate the rightful owner, these funds are transferred to Inland Revenue. In some cases, organisations initiate the transfer to IR earlier, especially during routine remediation processes.
Upon transfer to Inland Revenue, the funds are held by the Treasury until claimed by their rightful owners. As of March 31st, a staggering 415,829 individuals were owed a total of $477,162 million, with one individual, ZW Zhou, owed a substantial $230,383.37, transferred from ANZ.
The influx of funds into the system has been notable, with $130.89 million transferred to the Treasury in the nine months leading up to March 31st. While this marks a decrease from the previous fiscal year’s total of $206.12 million, it reflects a significant increase from the $59 million recorded in the 2022 financial year.
This increase can be attributed to amendments to the Unclaimed Money Act, which standardised the holding period to five years for all funds, replacing the previous variation of six or 25 years based on the fund’s origin.
The Unclaimed Money List is publicly accessible via the Inland Revenue website, facilitating individuals in searching and claiming their dormant funds. Additionally, the myIR accounts offer suggested matches for potential claimants. The Unclaimed Money team actively identifies potential owners and sends out letters inviting them to submit claims, with claims processed throughout the year.
To make a claim, individuals must provide evidence such as past contact information, correspondence with the organisation holding the funds, or documentation from the estate if applicable. Claims can be made within 25 years of the funds being received by Inland Revenue, after which unclaimed funds are transferred to the Crown via the Treasury.
In addition to Inland Revenue, the Treasury administers an unclaimed money list for funds originating from trusts, further underlining the extent of dormant funds within the financial system. As efforts continue to reunite individuals with their unclaimed funds, proactive engagement with the Unclaimed Money List remains essential for potential claimants to retrieve their rightful assets.
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