First India, Now Australia Abolish Big Bank-Notes, Australia looks all set to follow the footsteps of India by abolishing the country’s highest-denomination banknote in a bid to crack down on the “black economy”. 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.
Monday’s midyear 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.
The world now realizes the importance of PM Narendra Modi’s decision to ban Rs500 and Rs1000 to neutralize corruption and black money which was hampering the Indian economy. Though the opposition parties criticized PM Modi and his party for the historical decision the world leaders seem to think in other ways and have welcomed this massive crack down on the black money which is a huge threat to world economy. Australian government has now followed the path paved by PM Modi and has taken a historical stand on banning $100 note to flush out the black money holders in the country and close down any potential loopholes. Australian government saw Modi’s move of demonetization as the only way to tackle the black money menace which could ideally put the whole economy of the country in a huge bother. It is indeed interesting to see how the world looks up-to Indian PM and his strategies to run the world’s largest democracy and manage the world’s most potential economy.