What would happen "IF" the Australian 100 dollar changed..

There seems to be a undercurrent in some quarters to change the 100 dollar bill in Australia..

Maybe with the way security works ,and with Technology and the way it has changed it could be time to reprint a new more secure more traceable 100 dollar bill..

Because from what anyone can read,if they did change the design ,have a small window where you could cash in the old for new,what problems would surface..

I could think of several, if the exchange new for old ,then the ATO would have a party the way Data matching works and the chain linking within Government departments work,and the please explain letters that may end up in your letter-box..

 

Well, the new $5 note and new $10 notes have been rolled out. $20 is next, $50 after that, then $100. As far as I know the old notes are still valid, so I am not sure where this concern about having to trade the old $100 notes is coming from?

With regard to your questions:

Why do you have so many $100 notes to trade in that you think it is a reportable amount?

And if you really think the government will issue a please explain letter when you trade in your old notes, why not start progressively trading in your 100's for 50's now, in small amounts of course so you don't raise suspicion.

And maybe keep off the conspiracy theory web sites for a while. This all sounds like paranoid nonsense to me.

 

As I have read the same in Australian press for a while now..So it may just be paranoid nonsense ,but the argument is if there is so many 100 bills why are they not used and why..

 

Perhaps not paranoid nonsense to others.

Five ways Indians are dodging ‘black money’ crackdown

How Indian’s are dodging the ‘black money’ crackdown

Dirty money: Australia's missing $100 bills in hands of criminals, tax cheats, expert warns

Dirty money: Australia's missing $100 bills in hands of criminals, tax cheats, expert warns

 

The new notes look great and are the envy of the world.

Australian currency is always valid. Take a $1 note to a bank and it will be accepted.

 

I read the other day, Australian black money market is about 30bn.
India's is 500b

 

I just re-read my post and I wasn't clear. What I thought was paranoid nonsense was getting please explain letters from the ATO when the new notes are introduced. I have been reading the press too and I didn't see anything about that.

 

If that's the case on a per capita basis were punching well above our Weight. #straya!

On a serious note I wouldn't be surprised if $100 bills are not updated and simply not produced anymore (if that's not already happening)...

 

Yes, that's true but it doesn't address the part I thought sounded like paranoid nonsense. The original supposition is that when the new $100 note is introduced, people will be forced to trade in their old $100 notes for new, traceable $100 notes. At this time the exchanges will be reported to the ATO and ATO will start issuing "please explain" letters. It is the "please explain" letters that sound like paranoid nonsense to me.

Is there any evidence that:

1) the government will force Australians to trade in their old $100 notes for new, traceable $100 notes?

2) banks will record these transactions and pass the information to the ATO?

3) the ATO will start issuing "please explain" letters?

It seems to me that when the new notes are introduced, the existing notes will remain valid and will be gradually taken out of the system as they are circulated through the banks, to be replaced over time by the new notes.

The only way to mass target people undertaking illegal activities with $100 notes is to abolish them and give a time limit for surrendering the currency to exchange for $50 notes. Even then, I am not sure they would be able to collect individual details to pass on to the ATO.

The other side is that "Australia's missing $100 bills could be being stockpiled by criminals or those seeking to avoid taxes, an expert says, as momentum to axe high-denomination bills builds worldwide", then only criminals or those seeking to avoid taxes should be concerned about the changes. I reckon it is 15 years since I saw a $100 note and I have seen 2 $50 notes this year.

 

Perthguy

suggest that you read the link to the Indian story, the existing $100 notes cease to be legal tender where as the Australian link is about doing away with the $100 note not replacing it with a new note.

How Indian’s are dodging the ‘black money’ crackdown

 

Yep. I would buy gold in amounts that are not reported.

There are 2 proposals for Australia:

1) abolish the $100 note (1)

2) replace the $100 note with Hi-tech nano-chips implanted in order to allow them to be tracked. (2)

THE man charged with cracking down on the “black economy” has revealed how he would like to keep track of your $100 and $50 notes.

Hi-tech nano-chips would be implanted in Australia’s “disappearing” cash under a plan floated by Michael Andrew, the head of the federal government’s Black Economy Taskforce.

Speaking to The Courier-Mail, Mr Andrew said too much cash was being hoarded under pensioners’ beds and stockpiled as a trusted currency in China.

Estimates for the size of Australia’s so-called black economy vary from $23 billion to $50 billion. The government claims tax avoidance through cash payments costs the budget up to $10 billion in revenue, money that could go towards funding welfare and other services.​

I understand this is a real issue and I am not suggesting this is paranoid nonsense. But, from the information provided, it does not follow that any of the following will occur:

1) the government will force people to surrender their old $100 notes to be replaced by new $100 notes

2) that banks will collect personal information of such transactions and report this to the ATO

3) the ATO will issue "please explain" letters

It is 1, 2 and 3 that I am calling paranoid nonsense. Then, as you saw from the Indian examples, if this did happen, there are ways around it. Here is what I would do if I had stockpiled $100 notes:

a) buy gold in un-reportable amounts

b) go to the casino, buy chips with the $100 notes in amounts too small to be suspicious, wander around for a while, cash in the chips for new notes.

And that's off the top of my head and I don't even have any $100 notes.

(1) Should we scrap the $100 note?

(2) ‘You could put a trace on some of these notes’

 

per capita basis, yes....but on a macro sense, absolutely not.
The black money here is more localized, whereas in BRICS counteies, every man and his dog has a hand in it.
Governments of those countries cry foul because everyone dodges tax ( evasion , not legally avoidance), and those very people say why pay crooked politicians who engage in it themselves and are the main culprits on a dollar basis!
We dont have widespread issues like this..
A fair amount of that BRICS money has ended up in sydney and melbourne property ( as a way to 'clean ' the money and get it out of sight of local tax authorities) and has made them rich ! I have said many times, sydney and mel won the lottery in terms of this. Congratulations to sydney and mel. Wont see the likes of this capital flight to any other australian city in the next 20 years.

 

Perthguy

I don't think you have your head around the amount of money involved.

Why would a gold dealer accept your $100 notes and the problems that may come with them?

 

I once read an article saying that the primary users of $100 notes are criminals and retirees.

I can't comment on the criminal elements, but I have noticed that I never handle $100 notes myself although my parents do seem to use them quite a bit. Now I'm wondering if my parents are drug dealers...

 

The current plan is to update the $100 note.

The first denomination in the new series, the $5 banknote, was issued on 1 September 2016. The new $10 banknote will be issued from 20 September 2017, followed by the new $50 which is expected to enter circulation in late 2018. The remaining denominations in the series will be introduced in subsequent years.​

http://banknotes.rba.gov.au/australias-banknotes/next-generation-banknotes-program/

$50 notes and $100 notes are under review by the federal government’s Black Economy Taskforce.

"THE man charged with cracking down on the “black economy” has revealed how he would like to keep track of your $100 and $50 notes.

Hi-tech nano-chips would be implanted in Australia’s “disappearing” cash under a plan floated by Michael Andrew, the head of the federal government’s Black Economy Taskforce."​

‘You could put a trace on some of these notes’

Mr Andrew will hand down his final report in October.

 

You are right about that. I have no idea how much money criminals and retirees stockpile. Is it bad if people who are breaking the law get caught?

Because $100 notes are legal tender in Australia?

 

$100 notes are not common. $50 notes are very common.

 

Not in my wallet. I only have cash to buy lunch. That's it. I card everything else, or electronic transfer.

I don't understand these people who stockpile thousands of dollars in cash.

 

Let's just get rid of physical cash altogether. The last time I handled cash was 2 years ago. I use my card/phone/internet for absolutely everything now.

Will save the Government a heap of money in the long run, not having to print / make money, and they could invest that money into something else.

 

My thoughts exactly - I can't quite believe that they're thinking of replacing notes at this point? I only use cash for the kids lunch money once in a blue moon. Otherwise it's a very rare thing.