Lost money: $20 billion waiting to be claimed

Have you had the inkling you may have unknowingly lost money? Possibly a utility bill refund, a bank account you forgot about or superannuation from a past job?  

Lost money is more common than you think, with $17.8 billion in lost super waiting to be claimed and $2.3 billion in lost shares, bank accounts and life insurance.

What is unclaimed money?  

Unclaimed or lost money is essentially money that has not been touched or claimed for a certain amount of time.

Often this occurs when someone changes address, moves to a new institution, loses paperwork or a relative passes, leading to a disconnect between the owner and the money.  According to the Australian Securities and Investments Commission (ASIC) sometimes people might be unaware there is money to which they have a rightful claim.

How do I find unclaimed money?  

When an organisation can't locate the rightful owner, the money is sent to various government departments and agencies for safekeeping.  

Exactly where the money ends up and how you can make a claim depends on the type of lost money. Here's a breakdown based on the most common types of lost money.

Bank accounts, credit unions and building societies  

ASIC administers lost money from banks, credit unions and building societies.  

Where an account has been inactive for more than seven years and contains $500 or more, the money will be transferred to ASIC and held at the Commonwealth of Australian Consolidated Revenue Fund.  

To search for lost account balances, complete the following steps: 

1. Search the unclaimed money register on ASIC's Moneysmart website.
2. If you find your name, click on the result and make a record of the 'Original Transaction Number'.  
3. Contact the relevant financial institution directly and ask to speak to their 'unclaimed money officer' to begin the claim process.
4. If successful, the institution will notify ASIC who will release the funds to them so they can pay you. This usually takes about 60 days.

There is no time limit on claims (the database has records for savings accounts dating back to 1992) and claims dating back to 2013 are eligible to earn interest. The interest rate is based on the change in the Consumer Price Index (CPI).  

Life insurance and friendly societies  

ASIC also administers lost money from various life insurance policies left unclaimed for seven years after the policy has matured. The database goes back to 1952 for life insurance policies and 2000 for friendly societies.  

To search for unclaimed life insurance policies, complete the following steps: 

1. Search the unclaimed money register on ASIC's Moneysmart website.
2. If you find your name, click on the result and make a record of the 'Original Transaction Number'.    
3. Contact the relevant insurer directly and ask to speak to their 'unclaimed money officer' to begin the claim process. 
4. If successful, the insurer will notify ASIC  who will release the funds to them so they can pay you. This usually takes about 60 days.

Shares and investments  

For lost shares and investments such as bonds, the claims process is entirely managed by ASIC.  

To search for lost shares and investments, complete the following steps: 

1. Search the unclaimed money register on ASIC's Moneysmart website.
2. If you find your name, click on the result and make a record of the 'Original Transaction Number'.     
3. Complete the claims form and send your completed form and documents to ASIC.
4. If successful ASIC will release the funds. This usually takes about 60 days to process.

Superannuation 

Unclaimed superannuation is the most common source of lost money, with the Australian Taxation Office (ATO) holding nearly $18 billion on behalf of members. Instead of searching an online database, lost superannuation is linked to your tax file number (TFN) and accessible via myGov.

To search for lost super, complete the following steps: 

1. Go to myGov and log in or create an account.
2. Link your myGov account to the ATO.
3. Select 'Super' and you can see all details of your superannuation accounts, including lost or forgotten funds. 

You can also contact the ATO directly by calling the lost super search line on 13 28 65. This is an automated service so you'll need to have details handy including your TFN, current and postal address, super fund name and account numbers. 

Alternatively, you can complete a paper form. For more details, refer to the ATO's lost super page.  

If you find lost super you can choose to keep separate accounts or consolidate your super into one account. Moneysmart notes that having all of your super in one account means you save money by only paying one set of fees, have less paperwork and can keep track of your super balance more easily.

Before you leave a fund, it's important to check your insurance. "If you change funds, you might not be able to get the same cover. Be particularly careful if you have a pre-existing medical condition or are aged 60 or over," warns Moneysmart.

Utility refunds, lotto winnings and more... 

There are plenty of other types of lost money that don't fit neatly into a category like those listed above. This can include, but certainly isn't limited to: 

• Rental bond refunds 
• Share dividend payments 
• Vehicle license refunds 
• Overpayments of utility bills 
• Deceased proceeds  
• Tatts or TAB winnings and prizes 
• Salaries and wages  
• Cheques 

The best point of contact are the following state and territory government agencies:

• ACT: Public Trustee and Guardian and the ACT Treasury 
• New South Wales: Revenue NSW
• Northern Territory: Department of Treasury and Finance 
• Queensland: Queensland Public Trustee 
• South Australia: SA Department of Treasury and Finance 
• Tasmania: Tasmanian Department of Treasury and Finance 
• Victoria: State Revenue Office Victoria
• Western Australia: WA Department of Treasury 

How to avoid losing money  

While it's handy to know where to look when you do lose money, there are several preventative measures you can take to safeguard your funds:  

• Update your details - if you move house or change your contact number, update your details with your bank and any other organisations (insurance, super fund, landlord, utilities, share registries) you have financial relationships with.  
• Digitise - old paperwork ultimately ends up going missing, so try to photocopy all important documents to keep a digital file for your records. 
• Make a deposit - for bank accounts, making a small deposit or withdrawal at least once every seven years can prevent your account from becoming inactive. 
• Set a calendar reminder - for payments expected in the future, such as the return of a rental bond, set a reminder on the expected transfer date.
• Create a personal balance sheet - make a list of all your assets (cash, property, shares, superannuation and prepaid bills) and the organisations that hold them.

Key takeaways

The online registries make finding unclaimed money you're entitled to super accessible. Best of all it only requires a few minutes of your time and you don't need to pay someone to do it. Even if you're confident you haven't lost any funds, it's worth double-checking. You never know what you might find.