It shows the desperation of the Federal government led by Prime minister Julia Gillard and treasurer Wayne Swan that they are grabbing funds out of people's private bank accounts if they have not been used for three years. These accounts include money placed in children's accounts and pensioners who have set aside funds in case of a medical emergency.
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Regular contributor to this site, Peter Neilsen in the Open Thread page brought our attention to a newspaper article which tells of a pensioner coming home from hospital from heart surgery to find that a heartless federal government had emptied his account.
The robbery has begun early.Also In the Courier Mail the article, Government grab nets boys' savings, tells of two little boys piggy bank saving have been taken by the federal government.
Although the legislation to steal all money held in bank accounts that have been inactive for 3 years does not come into effect until after May 31st, the Government have jumped the gun and have already taken money from bank accounts which would be illegal prior to legislation coming into effect.
This is the link to just one typical story about the theft of money from peoples accounts prior to the commencement date of the legalisation of theft in Australia.
There are numerous reports coming forward now about this theft, including a report of $6 dollars being stolen from an account held by a child. Bloody hell they must be really getting desperate to rob little kids.
Ms Hadfield's sons' accounts were set up by the boys' grandparents when they were born. Grandmother Sandra Hodgson said the grab was disgusting.
"We should be able to leave the money in the accounts for the boys until they want it," she said.
The Coburg family did not realise the accounts had been closed until they got a letter. "I think there are lots of people like us who will get caught out," Ms Hadfield said.
Queensland pensioner Adrian Duffy was another victim.
He emerged from a quintuple heart bypass to find $22,000 had been emptied from his Suncorp bank account.
The 77-year-old had spent 14 years saving the cash with his wife, to help pay for major health-related costs.
Source: Sunday Herald SunIn this media release, Gillard government seizure of inactive bank accounts is an attack on property rights, back in February Simon Breheny of the IPA warned of the consequences of the federal governments then proposed actions. Although now some months old this media release is still very relevant.
"The Gillard government's plan to take money from dormant bank accounts is a shameful grab for cash and a significant attack on property rights," said Simon Breheny, director of the Legal Rights Project at free market think tank the Institute of Public Affairs..
The Treasury Legislation Amendment (Unclaimed Money and Other Measures) Act 2012 amends the Banking Act 1959 to lower the threshold for "unclaimed moneys", which are transferred from banks that hold the accounts to the Australian Securities and Investments Commission. Previously this was defined as any money in bank accounts that had been inactive for a period of seven years, but the new laws require inactivity for only three years.
"People should be able to leave money in bank accounts for as long as they wish without the fear that the government might come along and steal it from them. To do so is an arbitrary acquisition of property by the government," said Mr Breheny.
"Parents saving for their children's education, young people saving for a home and others putting money aside for retirement are all at risk of losing their savings as a result of these changes," said Mr Breheny.
"The changes could have a number of unintended consequences. Such a regime provides a disincentive to saving money with a bank and may encourage people to hide their money under the mattress and away from the hands of government," said Mr Breheny.
"The government is desperately attempting to shore up its financial position before the budget is handed down in May 2013," said Mr Breheny.
"Tony Abbott and the Coalition must commit to repealing these changes if elected to government," said Mr Breheny.