Will Australia get rid of the big green note?

Aussie bank notes may be on their way out, starting with the $100 note.

Aussie bank notes may be on their way out, starting with the $100 note. Investment bank UBS says phasing out the $100 note could help strengthen the banks, lessen crime and expedite the switch to cashless payments.

Analysts at UBS have released a report saying that there are nearly three times as many $100 notes circulating in Australia than $5 notes, but they are “rarely seen”. Additionally, about 92 per cent of the nation’s currency is in $50 and $100 notes.

As the world moves towards a cashless society, the relevance of larger bank notes has fallen into question.

“Given the increasing level of digital transaction penetration we believe Australia could move to remove larger denomination notes.

 “Since 2009, ATM transactions are falling at 3.4 per cent per annum while credit card transactions are growing at 7.3 per cent per annum driven by tap-and-go and the NFC (near field communication) technology.”

“We believe removing large denomination notes in Australia would be good for the economy and good for the banks,” UBS said.

Around the world, bank notes are beginning to fall out of favour. This week, India moved to demonetise its two highest denomination bank notes: the Rs1000 and Rs500 notes. India’s Prime Minister Narendra Modi said the move was designed to help reduce corruption and restrain the use of counterfeit money in the country. The Rs1000 and Rs500 notes, while now no longer legal tender, can still be deposited into banks until 30 December.

Should Australia move to phase out the $100 note? Are you prepared for a ‘cashless society’?

Read more at heraldsun.com.au

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    COMMENTS

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    Not a Bludger
    16th Nov 2016
    10:51am
    The $100 note was introduced in 1984, 30 years ago when the purchasing power of a dollar was significantly higher.

    What is needed is a $500 note not removing a note worth $20 or less in 1984 terms.
    Anonymous
    16th Nov 2016
    11:07am
    You need to explain what you need such a high valued note for.
    Not a Bludger
    16th Nov 2016
    11:51am
    I just have - reread the above
    Anonymous
    16th Nov 2016
    11:55am
    Huh?

    I shall rephrase. What would you spend your $500 notes on?
    Eddy
    16th Nov 2016
    12:20pm
    The biggest beneficiaries of a $500 note would be 'cash only' businesses, like the drug trade and the money launderers. Then only time I use $100 notes is when I fold them into a card as a gift to my grandchildren.
    GeorgeM
    16th Nov 2016
    1:58pm
    I agree Australia should have a bigger currency such as $500 for the reasons you mentioned.

    The article doesn't mention that India is trying to fix a huge Black Economy based on cash, so there is a good reason for it. Also, the article doesn't mention that the Rs 1,000 will be substituted by a Rs. 2,000 note, and the Rs 500 note will be re-issued with a new design i.e. not scrapped.
    Trust a bank to publish selectively, what is "...good for banks".
    Not a Bludger
    16th Nov 2016
    3:25pm
    What a load of leftie, cafe latte sippers you are - just like those who just got thoroughly "whupped"in USA - get real.
    MICK
    16th Nov 2016
    3:45pm
    Yeah Eddy. That is on the money (sic) and it would make it somewhat harder for criminals to operate. But the bigger picture is the destruction of physical money and the introduction of digital money where we are all tracked down to the very last dollar. Frightening stuff....not that i have anything to hide.
    Once we are 100% digital we are at the whim of corrupt governments and can be hung out to dry pretty easily.
    As I have said before we live in interesting times (of change) and before the end of many of our lifetimes we will have gone through at least another revolution.

    16th Nov 2016
    11:08am
    People will use less cash as time goes on, but we are a long way from a cashless society.

    Too many "pop-up" businesses where cash is the expected form of payment.
    Hasbeen
    16th Nov 2016
    12:31pm
    Can anyone direct me to a bank where I can opt out of this tap & go madness. My present bank has informed me my debit card will be tap & go from January first, & I have no choice.

    Well I do have the choice of changing banks, & getting rid of all cards if necessary. Perhaps if enough do this, the bank, a service industry might start to offer the service some of us want, rather than what is cheaper for the bank.
    Star Trekker
    16th Nov 2016
    1:45pm
    Just get an eftpos card. No chip, just the magnetic strip.
    Retired Knowall
    16th Nov 2016
    5:19pm
    Get a Commbank mastercard. You can opt out of the tap & go facility using the Commbank App.
    Old Geezer
    17th Nov 2016
    2:05pm
    I have disabled all the Tap & Go on my cards as I think it is a big security risk.
    Biddy
    16th Nov 2016
    11:36am
    It's just another way of Government checking to see if anyone is saving the notes,why change something if it ain't broke,when can one save anyways when all you get is enough to see you through from week to week as for a cashless society who needs this what that saying money makes the world go around. Are we going to change it saying our card makes the world go around how stupid,trust a stupid Government to think of this they are gutless not cashless isn't it the banks whom give these notes to the people when they go to withdraw money from their account,do we have to get $50.00 notes instead I really cannot see the reason for change at all? But this Governmet will do anything to check up on people shameful morons hopefully we are still many years away from a cashless society
    Anonymous
    16th Nov 2016
    11:43am
    Hey Biddy are just plain stupid or can"t you read this has nothing to do with the Government UBS is not a Government Department it is an investment bank.
    Rikki
    16th Nov 2016
    11:51am
    Yep, Biddy you are right . . . even if it is a back door way around to check on savings etc. HAsn't another country just done this recently and caused quite a lot of kaos with people having to line up at banks to change their money.
    Eddy
    16th Nov 2016
    12:12pm
    Roby, don't you consider that UBS doing the governments dirty work. There is an old saying 'run this up the flagpole and see who salutes'. The government is gauging public reaction without leaving any fingerprints. If the reaction is positive they will embrace it, if it is negative they will deny any involvement. It's a common enough practice in business and government.
    Rikki
    16th Nov 2016
    11:36am
    I use cash if the the business I'm dealing with is charging a % to me to use my CC and this is happening more and more and you can see businesses don't actually like the cash - its more work for them - I make sure I get a reciept as well.
    Arthron
    16th Nov 2016
    11:38am
    Good idea. I was given 2 x $100 notes from an ALDI check out. When I requested smaller notes, the check out woman refused. Was not impressed with her attitude.
    We should also have banks dispense $20 notes from ATM machines when withdrawing multiples of $100 instead of $50 notes. This is standard practice in North America.
    floss
    16th Nov 2016
    11:58am
    The last time I had a $100. bill in my hand was a day before the Libs gained power.
    particolor
    17th Nov 2016
    4:45pm
    DITTO !! :-( :-((
    DaveL
    16th Nov 2016
    12:00pm
    Let's get rid of the cash economy. We'll see who's not paying their taxes.
    Rosret
    16th Nov 2016
    3:24pm
    It actually works the other way DaveL. The moment we started to transact in virtual money the more the government can (and do) tax every transaction from payroll, to money transfer, to cash withdrawal etc.
    Rae
    16th Nov 2016
    4:03pm
    That is not the way to save on tax. You can't spend black money except on crap and fancy living and even then you have to be careful.

    No just start a business and spend all the profits on stuff or borrow money from yourself somehow through a separate entity at the 12.64% interest the bank wants then you don't pay tax and you get the stuff anyway but it's legal.
    The ATO don't care much if it's legal.

    Gosh I even flew business class when I had a business. It was one of the few periods when I got more back that I paid out. Bloody brilliant. That business lounge is fantastic.

    Never needed cash to do any of it. It was all on the company card earning frequent flyer points on the top.

    I know people who have their own plane and fancy cars waiting just for when they might need to visit that part of the business. All instead of paying tax.

    16th Nov 2016
    12:19pm
    For a lot of Age Pensioners the $100 note is certainly on it's way out.
    particolor
    17th Nov 2016
    4:47pm
    Like Loony said ! The last time they saw one was the Day Before Libs took over !! :-) :-)
    Ed
    16th Nov 2016
    12:28pm
    I don't think people understand,this is just another nail in the coffin,if and when a cashless society eventuates the govt.would have more control over the population if you don't toe the line you can't get food,an extreme point,but could be easy to implement if they wish to force there point of view,this is something the new world order want to happen.What is wrong with saving money yourself and not trusting a bank?last time I looked it wasn't illegal to put your money under the mattress and $100 notes would mean less space or whatever,they are saying it's to stop crime but there are many ways to cover black money if one wished,first it would be $100 then $50's until no dough,then they have complete control over you,like Biddy said 'if it ain't broke,bla,bla.......
    KSS
    16th Nov 2016
    1:21pm
    Actually Ed the last time this was mooted - and it was only a few months ago, the accusation was that it was the 'oldies' hoarding them in the manner you suggest which is why there are more $100 bills issued than seen. Removing the $100 denomination will just mean the 'oldies' will need a bigger sock drawer or sleep on a deeper mattress!
    particolor
    18th Nov 2016
    5:45pm
    That's True KSS And I've seen it in action !! :-) :-) I'd tell you story but would take too long :-) :-)
    The Bronze Anzac
    16th Nov 2016
    12:53pm
    It will be many years before we have a cashless society. Try going into any bank & withdrawing a reasonable amount of cash, & asking for it in $100 notes. They will tell you to "order" them, & come back in a few days. Stupid. When travelling overseas it is best to have some Australian notes. It is also best to have $100 notes, as in many countries you will get a better exchange rate for a $100 note than for 2 X $50 notes. I don't know why, but it's a fact.
    Anonymous
    16th Nov 2016
    1:01pm
    Lesser handling charge.
    grounded
    16th Nov 2016
    12:56pm
    I use cash totally....every day, for every thing. Every pension day, I withdraw; less $1, every cent of my pension. I have a 'feeless' account....hence I couldn't remember the last occasion I paid a bank a 'fee' for 'handling' my money.

    I need and survive on $100 notes. I have umpteen BOS accounts...(Bank of Sunshine Milk Tins), each loaded to capacity with $21,000 worth of $100 notes....again paying NOT one cent of Bank 'Fees'.

    Of course The UBS would be hollering to do away with $100 notes....more lucre for the Bank's to extract from their dimwit customers. A fool and his money are soon parted...in this card only, cashless society...as is only fair - when you gauge the level of intelligence in society today.

    It's cool to have a pocket full of plastic your paying through the nose for. Oh to be an innovative technology buff....as they are being (de)-fleeced with the same dexterity as that marvellous Tom Roberts painting of 'Shearing the Rams'.

    Now lets talk about the food distributors and their client loving facility of self serve check outs, that they have provided for the dimwits...er, 'customers'....(lol.... )
    Retired Knowall
    20th Nov 2016
    9:50am
    I mainly use plastic, pay no fees and get 32 days credit.
    The monthly statement is downloaded into my budget spreadsheet to detail all my expenditure.
    I know it's not for everyone, just as there are still people still riding around in horse and cart.
    As the saying goes "There's no fool like an old fool".

    16th Nov 2016
    1:07pm
    If the Government stays on it's present course, tacking away from reality, we will all soon see a cashless society - another "Hoover flag" era.
    Chuck
    16th Nov 2016
    1:31pm
    I agree with Rikki. I've got no problem with a cashless society but you should not be charged a fee for using your credit/debit cards, if this is the only means of paying for your goods and services.
    Anonymous
    16th Nov 2016
    2:56pm
    Of course you should chuck how do you think banks make money.
    They lend it to and charge a fee a la credit card
    Rae
    17th Nov 2016
    9:53am
    And banks make you use them because there is no alternative. Like when pay packets became cheques and then because we cashed them at the pub the cheques became digital money.

    Gosh I missed those cheque night pool games. it was a great excuse for a family night out once a fortnight.

    The money doesn't really exist you know. If we all tried to get our money to say buy gold we couldn't.

    That is what happens in a crisis. Everyone tries to get cash at the same time and the cash isn't real. It's totally pretend.

    It's just lights on screens. 111s and 000s in endless algorithms.

    Quite beautiful unless it all turns red or worse still goes blank.

    Banks don't need to charge for simple deposits/ transfers of wages, salaries or pensions. That is just greed.

    The money for the debt that they create out of nothing based on Central Bank say so should pay them enough. The fact that bank profits are so huge gives that away. Imagine creating lights on screens and getting paid 20% to do it.Or even 12.64% or 4.69%. Classicly clever isn't it.

    And if all you have is figures on a screen and the lights go out how do you get your money back?
    Chris B T
    16th Nov 2016
    3:19pm
    With smaller notes under the matress it will be very lumpy.
    When $100 notes become non legal tender, there will be a run on $50's and then $20's.
    [;-)
    Rosret
    16th Nov 2016
    3:19pm
    I don't know - $100 notes take up half the space of the $50s in the mattress. Think of the increase in our green footprint. ('cus the pun)
    Rae
    16th Nov 2016
    3:37pm
    This is just a way to prop up the banks that are in strife due to changes in the amounts they have to keep on hand.

    I was in Athens when we expected the ATMs and credit system to collapse and counted how much money we had between us. It was August 8th 2007.

    Since then I keep 6 months of cash in my solicitor's safe and 3 months in a bank safe storage.

    And it is mostly kept in $100 notes.

    The people like Barak that trust the banking system are pretty naive.

    Imagine the fees and charges if all your money was controlled by the bank/governments.

    And then the power goes down for 5 days like it did here last year.

    And you couldn't shop or get money out of ATMs.

    The local pub had a soup kitchen for those with no cash or provisions it was so bad.
    Anonymous
    16th Nov 2016
    3:42pm
    I don"t know about that Rae if you trust a solicitor you have to be pretty Naive they are the first to pinch your money most are crooks.
    Rae
    16th Nov 2016
    5:18pm
    Roby check out the bail in laws.Recently used in Cyprus to deal with banking crisis. Passed for use here by the G20 in Brisbane a couple of years ago. I trust my solicitor and my accountant. But I get your point some solicitors have committed fraud in the past.That is why the two locations. If you deal in property ever you do have to have a certain amount of trust and hope for the best.


    Our government currently guarantees up to $250 000 in a bank account. So savings are reasonably safe.

    The problem with a crisis is that suddenly everyone wants cash at the same time and liquidity collapses. That is what nearly happened that night in Athens. It was a french bank collapse and it impacted Athens very badly.

    I think it well worth keeping an eye on the Italian and German banks right now. And the bond market. Prices are collapsing and yields rising fast.

    This will be a train wreck long and drawn out. It started back in the 90s and has a ways to go yet before it is all over.

    I don't really want to hand over my savings to provide liquidity to the banking system if I don't have to. And have no doubt the world banking system is in strife.
    Circum
    16th Nov 2016
    5:49pm
    If 92% of the national currency is its 2 largest notes,why would you delete one of them?It simply means that you need to carry around more notes.More work for the bank to count when paying my bankcard bill.Larger volume of withdrawals from ATMs.Wallets already have less space for notes meaning I have to leave smaller notes at home otherwise wallet wont close.I agree that we need a $500 note.
    Gammer
    16th Nov 2016
    6:11pm
    Personally I really like $100 notes, especially for gift giving in birthday and Christmas cards. My grandchildren love the 'special' nature of a note they seldom see otherwise and I like the fact that it is less likely to be frittered away on 'little' purchases at the corner shop.... I hate credit - my card is simply for emergencies - so a few hundreds are much less bulky in my wallet, too, when I'm out shopping for high cost items.
    Rae
    16th Nov 2016
    6:49pm
    Yes you do tend to think twice before breaking a $100. Not at all sympathetic to the consumer machine.
    particolor
    16th Nov 2016
    6:53pm
    Definitely Not !! You will need one of them to pay the Doctor by Christmas :-( :-( :-(
    Polly Esther
    17th Nov 2016
    12:40pm
    Witch Doctor?
    particolor
    17th Nov 2016
    4:32pm
    I said "You !!" I don't go near them ! Id rather Suffer in Silence !! :-(
    Old Geezer
    17th Nov 2016
    2:06pm
    I rarely use cash so it won't matter to me if there is no $100 notes.
    particolor
    17th Nov 2016
    4:37pm
    I think You've still got Your First Pay Packet ! UNOPENED !! :-) :-) :-)
    Old Geezer
    18th Nov 2016
    5:34pm
    Yep it is still in my antique lunchbox.
    particolor
    18th Nov 2016
    5:41pm
    I think the Banana is past its "Best Before" by now ?? You'd better get it out and give it a Decent Burial !! :-) :-)
    Not Senile Yet!
    20th Nov 2016
    11:42am
    Being basically an out of the square thinker....this is just the removal of a choice....something Both the Banks and This Liberal Right Wing Government are GOOD At!!!
    The only reasons to remove the $100 Note are to Stop Hoarding and minimise the Cash Trading!
    Both the Banks & Government are the only winners.....not the people!
    If the systems crash.....problems!
    To do this their has to be a win for people....so they need to REMOVE all Fees on All transactions!
    They won't.....because that defeats their aim....to get more & more % of your money!
    Both the Banks & Government want this for their interests....Not Ours!
    Oh....and yep....they are testing reactions.....feeling the pulse....as they say!
    Charlie
    20th Nov 2016
    6:05pm
    I wont be moving to a cashless society. I recently went back to paying cash for my groceries after I found errors in my bank statement. Its easier to deal with it by cash, check it on the spot and its done.
    Then there's nobody in the background getting stats on how you live, also you don't have to go through a circus with the bank credit card for a $10 mistake. Just think how much they make, if they get $10 more out of everybody. Notice with all these mistakes it is never a mistake in your favor.
    Nan Norma
    22nd Nov 2016
    6:38pm
    It will be a sorry day the day we become a cashless society. Another loss of freedom. Can't give your mother a few dollars or pay someone to mow your lawn without the government knowing and mum and Centrelink knows. The kid next door babysits the government says she earned money. Just truly think about it. Every cent will be able to be traced. Every cent you have will be accounted for. Think about it.


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