War on Cash: Australian Government floats $100 note removal

War on Cash: Australian Government floats $100 note removal, by Frank Chung.

Australia looks set to follow in the footsteps of Venezuela and India by abolishing the country’s highest-denomination banknote in a bid to crack down on the “black economy”.

australian-cash

Speaking to ABC radio on Wednesday, Revenue and Financial Services Minister Kelly O’Dwyer flagged a review of the $100 note and cash payments over certain limits as the government looks to recoup billions in unpaid tax. …

Liberal Democratic Senator David Leyonhjelm hit out at the proposal, saying “the only people who are distressed by the cash economy are the government and the public servants who want to spend taxes”. …

“From the banks’ perspective there would likely be a spike in deposits — if all the $100 notes were deposited into banks (ignoring hoarded $50 notes), household deposits would rise around four per cent,” the report said.

If the government doesn’t allow you to have (much) of its cash, your money stays in the banking system — and buying and selling just means moving numbers between bank accounts. So the banks and government will know and control everything you do financially. If they don’t like you, they can deny access to funds, delete your money, or fine and tax you as they please. And if there is ever a technological or financial problem with the banks… For more on the motives and drawbacks of the war on cash, see here.