Financial customers who deposit money into banks, credit unions or building societies that close will have their money guaranteed by the government’s Financial Claims Scheme. Payments up to $20,000 will be paid back within a week if the financial institution goes into liquidation.
The Federal Government estimates the scheme will cover up to 90 percent of deposit accounts. Treasurer Wayne Swan noted that this was preferable to past experiences where depositors, although they were considered creditors, may have waited months or years to get their money back.
"The Rudd Government is determined to provide as much certainty and protection to customers as possible," he said.
The new scheme also applies to general insurers but not life insurers or superannuation funds.
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