Banks accounts to lay idle for seven years

Legislation to extend the period before money in idle bank accounts transfers to the government has passed the parliament.

Australians who aren't actively using their bank accounts will have an extra four years before having to retrieve their cash from the government.

Legislation to reverse the Labor-imposed three-year deadline for unclaimed money to seven years passed the parliament on Wednesday.

After seven years lying dormant, customers can then get their cash from government coffers which accrues interest at the bond rate.