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(Australian Associated Press)
The future of the $100 note and cash payments over certain limits will be investigated as the federal government looks to recoup billions in unpaid tax.
Monday’s mid-year budget update will include the appointment of former KPMG global chairman Michael Andrew to oversee a black economy taskforce.
The black economy accounts for 1.5 per cent of GDP, given many cash payments are untaxed.
Not only is the lost revenue owed to the Australian people for schools and hospitals, but it’s also critical for those who do the right thing and pay tax, Revenue and Financial Services Minister Kelly O’Dwyer says.
“The whole point of this crackdown on the black economy is to make sure we close down any potential loopholes,” she told ABC radio on Wednesday.
Despite the broad use of electronic forms of payment, Ms O’Dwyer warned there are three times as many $100 notes in circulation than $5’s.
“It does beg the question ‘why’,” she said.
The minister would not rule out the removal of the $100 note, saying it was up to the expert panel to provide recommendations.
“There’s nothing wrong with cash per se, the issue is when people don’t declare it and when they don’t pay tax on it,” she said.
The taskforce will draw on the experience of countries like France, where the government banned cash payments of more than 1000 euros.
“I’m not going to put a limit on what the taskforce will look at,” Ms O’Dwyer said.