Inspired by India’s Narendra Modi government’s recent demonetisation drive to curb black money, Australian Government is now mulling the removal of $ 100 bank note, its highest-denomination. Speaking to country’s ABC radio, Australia’s Revenue and Financial Services Minister Kelly O’Dwyer flagged a review of the $100 note and cash payments in a bid to curb black money. The government is expected to make the announcement in Monday’s mid-year budget update. A report said that former KPMG global chairman Michael Andrew can be appointed to oversee a black economy taskforce. Reports say that entire black money in Australian economy amounts to 1.5 per cent of total GDP.In a conversation with ABC, Ms O’Dwyer said that black money is critical to both – the country as it loses revenue and the those who do the right thing and pay tax.
As per reports, there are currently 300 million $100 notes in circulation. Almost 92 per cent of all currency in circulation is in $50 and $100 notes. However, the likely demonetisation in Australia’s currency will not be an exact replica of Indian model. In India, the announcement was kept secret. However, the Australian government has already hinted about the development. Australia is not only country to follow India’s demonetisation drive.Venezuela had also announced demonetisation days after it was announced in India.
Prime Minister Narendra Modi, in a historic decision, announced on November 8 all 500 rupee and 1000 rupee notes will not remain legal tenders anymore. The demonetised notes are around 85 per cent of all bills in circulation.