Deposits: Paid, Then Forgotten

Deposits: Paid, Then Forgotten

Often unclaimed or unresolved, deposits are easy to overlook. As part of everyday operations, they rarely receive a second thought.

But recent changes in NSW are a clear signal that these balances can no longer sit indefinitely.

From 1 July 2025, the holding period for unclaimed money has reduced from six years to just two. This means if your organisation is holding deposits, refunds, or other amounts owed to someone else for two or more years, you are required to act.

Each year, if those funds remain unclaimed as at 30 June, they must be reported and transferred to Revenue NSW by 31 October. Missing that deadline may result in penalties and interest.

In most cases, this applies to amounts over $100 that have been inactive for two years. However, some accounts such as trust accounts are included regardless of value.

The Real Issue

On paper this is a compliance requirement, but in reality is a reflection of something deeper: accountability.

Unclaimed deposits rarely happen all at once. They build over time through the small gaps such as missed follow-ups, unclear ownership, and inconsistent processes. Left unchecked, they become increasingly difficult to trace, explain, and resolve.

For Not-for-Profit organisations, this goes even further beyond compliance.

Strong financial stewardship builds trust which is essential to continue to make impact within the community. Every dollar needs to be accounted for and handled with intentionality.

An Opportunity

Reviewing these balances often reveal opportunities to strengthen your systems.

This includes cleaner reconciliations, improved tracking, and clearer accountability across teams. It’s not just about clearing old items but about strengthening how your organisation operates moving forward.

A simple place to start is to ask:

What deposits or balances are currently sitting in our accounts without active follow-up?

Learn more about the changes here to stay up to date, informed, and to implement necessary actions.

How We Can Assist

If you need assistance to review or strengthen your processes around unclaimed balances, we would love to assist. At The Breakthrough Office, we work alongside Not-for-Profit organisations to build practical and reliable financial systems to ensure you can remain focused on Creating Impact.

Please reach out to us at [email protected]