Hi Bec
Interest can be applied to funds held in trust by local councils in NSW, but it depends on the type of fund and the council’s policy. For certain security deposits, interest is calculated and paid to the depositor upon refund, less an application fee, while for other funds, the interest may be retained by the council or applied to public benefit.
At Gunnedah Shire Council, we have a mixed bag of Trust Accounts, in which the Trust Deeds specifies that interest is paid, and other accounts have no interest paid, including surplus proceeds from the Sale of Land for Rates.
I also noticed proceeds remitted to the NSW Office of State Revenue in accordance with the Unclaimed Moneys Act, 1995 after six years are not paid any interest whilst being held by State Revenue.
Regards
Anthony
