Labor backs bill on dormant accounts

Labor has agreed to a federal government move to extend the time that bank deposit accounts can be left inactive before the money is lost to authorities.

The government is seeking to lengthen the period from three years to at least seven years before money is transferred to the Australian Securities and Investment Commission.

The Labor caucus decided in favour of the change on Tuesday, despite earlier in the year saying leaving the money for longer would erode its real value.