Legislation allowing the federal government to seize cash from inactive bank accounts should be challenged in the High Court, says federal leader of the Palmer United Party, Mr Clive Palmer.
Mr Palmer said legislation which will allow money from accounts containing anything from $1 upwards not used for three years to be transferred to the Australian Securities and Investment Commission was a clear sign the Gillard Government was falling apart.
“It is a total disgrace that the Government is prepared to raid the nest eggs of hard working Australians in order to build its own revenue,” he said.
“It is stealing and completely unconstitutional. It was criminal back when the timeframe was seven years before inactive accounts could be plundered and even worse now that legislation has been introduced to make it three years.
“The banks should mount a High Court challenge to stop overturn laws.’’
Mr Palmer said many people who had put money away for a rainy day or for their children’s education would be unaware that the accounts could be raided by Treasury.
“It is the most shameful cash grab imaginable,’’ he said.