Future of the $100 note up for grabs as government targets cash

Discussion in 'Current Affairs' started by Currawong, Dec 13, 2016.

  1. Currawong

    Currawong Member Silver Stacker

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    The Turnbull government is to consider a ban on the $100 note and a crackdown on all but small cash payments as part of an assault on the cash economy to be unveiled in Monday's mid-year budget update.

    "There's nothing wrong with cash, the issue is when people don't declare it," said Financial Services Minister Kelly O'Dwyer ahead of the announcement.

    "The cash economy is worth 1.5 per cent of GDP, that's about $21 billion. If we can get a percentage of that, it's revenue owed to the Australian people."

    Ms O'Dwyer will set up a taskforce, to be headed by former KPMG global chairman Michael Andrew, to draw on the experience of France, where the government is banning cash payments of over 1000 euros, and Sweden, where businesses that trade in cash are required to use a certified cash register that is seen by tax authorities.

    The latest Reserve Bank figures show an explosion in the $100 notes even as electronic payments have become more widely used. There are 12 $100 notes per person in circulation, more than double the five in circulation 20 years ago. There remains about six of the more widely-seen $20 notes in circulation, roughly as many as there were 20 years ago.

    The use of $100 notes jumped 9 per cent in just the past year, well above the long-term growth rate of 7 per cent and far more than the use of $50 notes, which jumped 6 per cent and $20 notes, which increased 2 per cent.

    "This growth in high-denomination banknotes is well above recent growth in nominal income for the economy and reflects a range of factors, such as overseas demand, which is heavily influenced by movements in the exchange rate, and the fact that high-denomination banknotes are also used as a store of wealth," the annual report says.

    Asked on Wednesday whether the $100 notes could be scrapped, Ms O'Dwyer said: "I'm not going to put a limit on what the taskforce can look at."

    http://www.theage.com.au/federal-po...undeclared-cash-payments-20161213-gtakk5.html
     
  2. BuggedOut

    BuggedOut Well-Known Member Silver Stacker

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    I'll be protesting in the streets against this one.

    Just tell me where and when.
     
  3. bordsilver

    bordsilver Well-Known Member Silver Stacker

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    Shock. Horror. Never been predicted on this forum. Some geniuses we have.
     
  4. bordsilver

    bordsilver Well-Known Member Silver Stacker

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    First protest is to never use electronic payment methods for everyday transactions (including for buying 1oz gold coins). I hardly know of anyone that does this though (even many of the people on this forum).
     
  5. Jislizard

    Jislizard Well-Known Member Silver Stacker

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    Just currency envy!

    The European Union and USA were considering getting rid of their high denomination notes and India have already done so in order to crack down on organised crime so Australia felt it should do the same otherwise it would make us look like fiscal pygmies.
     
  6. Currawong

    Currawong Member Silver Stacker

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    I think I'd miss seeing Monash and his fancy moustache around the most honestly.

    I can't believe, that after the utter debacle the Indian currency withdrawal has been that our own government would consider it. Withdrawing them from circulation/not printing any new hundreds is one thing but actual demonetisation is an incredibly drastic idea.

    The killing a fly with a sledgehammer analogy comes to mind.
     
  7. SteveS

    SteveS New Member

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    The Turnbull Party just doesn't have the vaguest clue how to govern and seems blind to what's happening around the world with the demise of AGW, Brexit, Trump, Hanson and widespread citizens' unrest across Europe.
     
  8. shinymetal

    shinymetal Well-Known Member

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    I think they're aware that it's happening, and they are doing their best to act like everything is just fine. and keep the public compliant and unaware. you know, just like in the US.
    https://wikileaks.org/podesta-emails/emailid/3599
    If a bunch of people on a internet forum can figure it out surely the government can.
     
  9. aleks

    aleks Well-Known Member Silver Stacker

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    Pushing on a string for economic growth

    [​IMG]


    "This growth in high-denomination banknotes is well above recent growth in nominal income for the economy"

    [youtube]http://www.youtube.com/watch?v=Z33CocoMNn8[/youtube]
     
  10. aleks

    aleks Well-Known Member Silver Stacker

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    I say bring on negative interest rates and a cashless economy I want to see it happen for the lols
     
  11. BuggedOut

    BuggedOut Well-Known Member Silver Stacker

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    This isn't about common sense. It is about ulterior motive.

    There is no legitimate case for eliminating large denomination notes from circulation other than increasing government control over currency. Which is something any freedom loving citizen should resist.
     
  12. fscked

    fscked Member

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    This is exactly what this is about, the war on cash has ramped up all across the globe this year and it's scary as turtle. And there is still a thread about why people buy PMs :rolleyes: "Money owed to the people" give me a f*cking break please, just like in China how all land is owned by "the people." Do these morons think we have the mental capability of toddlers?

    Also remember as our governments edge closer to complete insolvency they will tighten the screws on taxes, about every ad in 10 on the radio here is now the IRD threatening you not to do cash jobs.
     
  13. SilverDJ

    SilverDJ Well-Known Member

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    We just had a tradie turn down cash payment, said he was getting the rubber grove treatment.
     
  14. sammy

    sammy Active Member Silver Stacker

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    Did anyone else think WTF on this bit?
     
  15. SilverDJ

    SilverDJ Well-Known Member

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    Yup, and that alone is enough case against doing this. Any citizen with half a brain keeps some cash outside the banking system, if anything just for convenience.
    What does it stop? People will just move to the $50 note instead. Stacks will grow double in height, whoopdy-do, it won't stop a single person using it for whatever purpose they current use $100 notes for.
    What's the next step, removing ALL cash? Oh....

    Not that that will happen, so it's a stupid and pointless move to even take the first step.
     
  16. willrocks

    willrocks Well-Known Member Silver Stacker

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  17. Shaddam IV

    Shaddam IV Well-Known Member Silver Stacker

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    Looks like Liberal and Labor are really both setting themselves up to becoming minor parties in the future with stunts like this.
     
  18. Ronnie 666

    Ronnie 666 Well-Known Member Silver Stacker

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    I think you missed the point neither labor or liberal control the country. The banks do as without credit (currency) the government is without power. You can vote for anyone including Pauline and they are powerless to stop this unless they put all the bankers in jail (where they belong) and put Australia on a asset backed monetary system. Is that likely to occur no - not until life becomes unbearable. Remember the barbarians greatest allies where the roman population especially the farmers who joined them at every opportunity against the empire as the only relief from overwhelming taxation and hardship was death. When we approach that which may be sooner than you think, change will then be possible.
     
  19. yennus

    yennus Well-Known Member Silver Stacker

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    Unfortunately there doesn't appear to enough freedom loving citizens available :(
     
  20. PeterS

    PeterS Member

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    In a radio interview on it tonight Scott Morrison commented that advice he had received was that the 'tradie' cash ecconomy was based on the $50 note
     

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