Dec 16, 2016

Cash out: why does the govt want to ban the hundge?

The government has proposed removing the $100 bill from circulation in order to combat the lack of taxation in the $21 billion cash economy. Crikey intern Liam Apter looks at the use of the $100 bill and what this means.

PM Malcolm Turnbull’s government has proposed removing the $100 bill from circulation, as well as targeting the “black economy” — also known as the cash economy — as a form of budget repair.


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12 thoughts on “Cash out: why does the govt want to ban the hundge?

  1. Stuart Coyle

    You remove the $100 and then end up with the same problem with $50s. I suppose they hope to catch people as they try to cash in the bills.

    Moving towards having cash being illegal must make the banks happy.

  2. The Curmudgeon

    I thought that the GST was supposed to wipe out the black economy, that’s what John Howard said.

    1. Mick Devine

      Exactly my thought Curmudgeon! If we do away with the $100 bills, will we then be able to abolish the GST?

      1. klewso

        That was just another Howard non-core promise…..

    2. Mayan

      Income is a slippery concept. Taxing land and resources is a better way: it’s efficient, and practically impossible to avoid.

      The world’s accountants and tax lawyers will then be liberated from the shackles of their unproductive employment.

  3. Terry of Tuggeranong

    And here was silly old me believing Howard’s repeated assurances that the GST would stop the ‘black economy’. Obviously Ms O’Dwyer was not born when these assurances were being given ad-nauseum

  4. Dion Giles

    If $100 notes help citizens circumvent the Theft Tax on day to day living transactions introduced by H0ward to fund a 17% reduction in company tax then it is better that the notes be retained.

  5. klewso

    Monkey see, monkey do? Modi’s Indians did it – so why shouldn’t we?
    These “black economists” would never think of using twice as many $50 bills to cover an engineered gap like this one.

  6. bushby jane

    They are barked up the wrong tree, apparently $50 notes are the ones that are mostly used for black market stuff. Which the GST enhanced imo.

  7. Alan

    Another distraction from this moribund government, bereft of ideas, strangling the economy for the benefit of rent-seekers and tax dodgers.

  8. Graham R

    Criminal activity? Phshaaaaw.
    This might lead to a slight curtailment of very low-level criminal activity, but I doubt it. The real criminal activity, engaged in by banks, developers, the rich generally, tax avoiders and evaders, will not be bothered by this one bit. Just how our political Parties like it.

  9. AR

    It will be a sad world when all major transactions are electronic – no hacking problems by then.

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