Taking a cue from India’s demonetisation move, the Australian government is now mulling scrapping its highest bill, the $100 bank note, in its attempts to curb black money.
Speaking to ABC radio on Wednesday, Revenue and Financial Services Minister Kelly O’Dwyer flagged a review of the $100 note (nearly Rs 5000) and cash payments over certain limits as the government looks to recoup billions in unpaid tax.
The government is expected to make an announcement in this regard in Monday’s midyear budget update and is likely to appoint former KPMG global chairman Michael Andrew to oversee a black economy taskforce, a report by news.com.au said.
The black economy accounts for 1.5 per cent of Australia’s GDP.
“The whole point of this crackdown on the black economy is to make sure we close down any potential loopholes,” O’Dwyer told the ABC.
She warned there are three times as many $100 notes in circulation than $5 notes.
92 per cent of all Australian currency by value is in $50 and $100 notes and around 300 million $100 notes are in circulation.
However, unlike the decision taken by Prime Minister Narendra Modi, Australia would not keep its demonetisation a secret as it has already announced its intentions.
PM Modi had on November 8 announced the scrapping high-denomination notes of Rs 500 and Rs 1,000 notes. He said the decision was taken to curb black money, stop counterfeit notes from circulation and to stop terror funding.
