Demonetization of high value currency notes in India has set a new Vogue. Impressed with measures, to curb corruption and curtail the shadow economy, taken by Indian Prime Minister Narendra Modi, Federal Government of Australia has set up an enquiry into the use of $100 notes and how these notes abet people in using black money.
On November 8, 2016 Prime Minister Modi announced the discontinuation of Rs500 and Rs 1000 notes. The covert operation on black money will help India in minimizing its shadow economy while promoting people to go for digital transactions. “The whole point of this crackdown on the black economy is to make sure we close down any potential loopholes” said Revenue and Financial Services Minister Kelly O’Dwyer.
She had also mentioned in her interview with ABC radio that there are 3 times more $100 notes in circulation as compared to $5 notes. A war on illegal cash transactions will have a Domino effect on the shadow economy of Australia which accounts for 1.5 percent of Australia’s GDP.
She also opinionated, “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 seems content with her step and said that she will not obstruct the taskforce looking into this matter and would not influence their decision in any way.