After Venezuela and Indian prohibited large-value notes, a developed economy, Sydney, is considering a prohibition on the A note, its maximum denomination. Australia, like Indian, is trying to flush out cash from its black’ market that is ‘ while Venezuela’s tottering market and hyper inflation are battling.
On Mon, in its mid-year budget update, Excellent Minister Malcom Turnbull’s government will reveal some measures aimed at recovering billions of dollars lost to untaxed funds obligations, news.com.au documented.
This subterranean economy is said to account for 1.5 per cent of the nation’s GDP and is believed to be worth about $21 million.
The government is putting together an economy task force under KPMG chairman Michael Andrew that is worldwide to consider the future of the A$100 notice, which is considered to ease tax dodging and welfare scams, as well as seem at capping cash obligations beyond a specific amount.
Now, the country has 300 million notes of A$100 in circulation. Reports indicate that about 92 percent of Australia currency, by value, is in $50 and $100 notes. Any push will be further complicated by the fact that the Australian dollar is a currency that is freely convertible and its notes are in circulation around the globe.
The task force will study the experience of Italy, which will not permit cash obligations above €1, It'll include the Australian Tax Office, Reserve Bank of Australia, the Australian Securities and Investment Commission, the Australian Transaction Reports and Analysis Centre, and the immigration and human services departments.
Bloomberg reported that Swiss worldwide financial-services leading UBS had called to get a ban on the A$100 notice last month. “Removing big-denomination records in Sydney would be great for the market and great for the banks UBS analysts headed by Mott said in a study.