Dormant Accounts in Australia 2026: Policy Updates & Your Money

A dormant account is a bank account that hasn't seen any deposits, withdrawals, or other customer-initiated activity for a set period—typically seven years. The Australian Securities and Investments Commission (ASIC) defines dormancy as no customer-initiated transactions for seven years, excluding things like bank fees or interest payments.

• Common types: Savings accounts, transaction accounts, term deposits, and even some trust accounts.

• Why it matters: Once an account is classified as dormant, the balance (if above $500) may be transferred to the Commonwealth of Australia Consolidated Revenue Fund.

• Accessing your money: You can claim your funds back at any time via ASIC’s unclaimed money search, but it’s a process that can take weeks.

In 2026, most major banks now notify customers at least 60 days before dormancy action, thanks to new ASIC-mandated communication rules aimed at reducing the number of unclaimed accounts.

This year, several changes have kicked in for dormant accounts:

• Digital notifications: Banks must use SMS or email (not just snail mail) to warn customers before dormancy actions occur.

• Shorter reclaim times: ASIC has streamlined its online unclaimed money claim process, reducing average wait times from 60 to 30 days for verified claims.

• Fee transparency: All fees related to dormant accounts must be clearly listed in customer statements and online banking portals.

• Increased public awareness: The federal government has launched a 2026 campaign to remind Australians to check for unclaimed money, with a focus on superannuation and lost bank accounts.

For example, Westpac’s new online portal now allows customers to instantly view any accounts approaching dormancy and take action with a single transaction. Similarly, NAB sends automated text alerts to all customers whose accounts are flagged as inactive for six years and eleven months.

With over $1.5 billion sitting in unclaimed Australian bank accounts and life savings, a few simple steps can help you avoid losing track of your money:

• Keep accounts active: Make at least one transaction every 12 months—even a small deposit or withdrawal will reset the dormancy clock.

• Update contact details: Ensure your bank has your current mobile and email to receive dormancy alerts.

• Consolidate where possible: If you have multiple old accounts, consider merging balances into your main account to reduce the risk of forgetting them.

• Check regularly: Use ASIC’s unclaimed money search tool annually to see if you have funds waiting to be claimed.

• Nominate a beneficiary: For joint or trust accounts, clarify who can access the funds if the primary account holder becomes inactive.

Real-life case: Melbourne resident Priya discovered $2,700 in a dormant savings account from her university days—money that had quietly moved to the government until she reclaimed it online. With ASIC’s new digital claims process, she received her funds in under three weeks.

Dormant accounts are more than just a banking technicality—they can mean lost money, unexpected fees, or long waits to access your own cash. The 2026 regulatory updates are designed to protect consumers, but the ultimate responsibility rests with account holders to stay vigilant. Taking a few proactive steps can ensure your hard-earned savings don’t disappear into the government’s coffers.