Chester Hughes Warns of Insider Risks in Auctions of Abandoned Safe-Deposit Box Assets

Opposition Senator Chester Hughes has expressed concern that public auctions of property removed from abandoned safe-deposit boxes could be vulnerable to insider dealing if the sales are not widely and transparently advertised.

Speaking during debate on the Banking Amendment Bill 2026, Hughes argued that valuable items, including jewellery, precious metals and family heirlooms, could end up being purchased by a select few who receive advance knowledge of the auctions while the wider public remains unaware.

Although the bill provides for the assets to be sold by public auction, Hughes questioned whether publishing a notice in a newspaper alone would be enough to ensure genuine public participation.

“Yes, it’s a public auction, but only Philip Shoul and Chester Hughes know about the auction because it’s in the paper,” he said, using the example to illustrate how limited advertising could undermine the openness of the process.

Under the proposed legislation, financial institutions would be required to publish notice of the intended sale and send notification to the owner’s last known address before the contents of an abandoned safe-deposit box can be auctioned.

Hughes, however, argued that stronger safeguards should be included to ensure the auctions are conducted in a transparent manner and reach as many potential bidders as possible.

He warned that without broader public awareness, there is a risk that individuals with inside knowledge could benefit from the sale of valuable private property, potentially acquiring items well below their true market value.

The opposition senator maintained that because the assets may include not only valuable possessions but also items of significant sentimental importance, the process for disposing of them must inspire public confidence and protect against any perception of preferential treatment or insider access.