FINANCIAL CLAIMS SCHEME (Government guarantee on deposits)

The Financial Claims Scheme is an Australian Government scheme that provides protection and quick access to deposits in banks, building societies and credit unions in the unlikely event that one of these financial institutions fails.

Under the Financial Claims Scheme, certain deposits are protected up to a limit of $250,000 for each account holder at any bank, building society, credit union or other authorised deposit-taking institution (ADI) that is incorporated in Australia and authorised by the Australian Prudential Regulation Authority (APRA).

The Financial Claims Scheme can only come into effect if it is activated by the Australian Government when an institution fails. Once activated, the Financial Claims Scheme will be administered by the Australian Prudential Regulation Authority (APRA).

In an Financial Claims Scheme scenario, APRA would aim to pay the majority of customers their protected deposits under the Scheme within seven calendar days.

The Financial Claims Scheme limit of $250,000 applies to the sum of an account holder's deposits under the one banking license.

Therefore, all deposits held by an account holder with a single banking institution must be added together towards the $250,000 Financial Claims Scheme limit, and this includes accounts with any other banking businesses that the licenced banking institution may operate under a different trading name.

Our banking licence trades under the following names:

• Australian Military Bank
• RSL Money

The following RSL Money deposit accounts are covered by the Financial Claims Scheme:

• RSL Money Sub Branch Account
• RSL Money Term Deposits
• RSL Money Pension Account

In the case of joint accounts, each account holder's share of the joint account will be added to other deposits held in their name and the cap will be applied to the aggregated amount for each account-holder. Each account-holder is entitled to an individual guarantee up to the cap of $250,000.

The Scheme only applies to deposits denominated in Australian dollars.

Information on the Financial Claims Scheme is available on the Financial Claims Scheme website – www.fcs.gov.au.