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The ''Bank Notes Tax Act 1910'' (Cth) was an Act of the
The Act imposed an annual tax of 10% on "all bank notes issued or re-issued by any bank in the Commonwealth after the commencement of this Act and not redeemed." The tax commenced in March 1911.
In September 1910, the federal government had passed the '' Australian Notes Act 1910,'' which introduced an Australian national currency, the
s.44
/ref>
Parliament of Australia
The Parliament of Australia (officially the Parliament of the Commonwealth and also known as the Federal Parliament) is the federal legislature of Australia. It consists of three elements: the Monarchy of Australia, monarch of Australia (repr ...
which imposed a prohibitive tax on banknote
A banknote or bank notealso called a bill (North American English) or simply a noteis a type of paper money that is made and distributed ("issued") by a bank of issue, payable to the bearer on demand. Banknotes were originally issued by commerc ...
s issued by bank
A bank is a financial institution that accepts Deposit account, deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital m ...
s in Australia
Australia, officially the Commonwealth of Australia, is a country comprising mainland Australia, the mainland of the Australia (continent), Australian continent, the island of Tasmania and list of islands of Australia, numerous smaller isl ...
. The Act was enacted in October 1910 by the Fisher Labour Government under Section 51 (xii) of the Constitution of Australia, that gives the Commonwealth Parliament the power to legislate concerning “currency, coinage, and legal tender” and the taxing power.
The Act
The Act imposed an annual tax of 10% on "all bank notes issued or re-issued by any bank in the Commonwealth after the commencement of this Act and not redeemed." The tax commenced in March 1911.
In September 1910, the federal government had passed the '' Australian Notes Act 1910,'' which introduced an Australian national currency, the Australian pound
The pound (sign: £, £A for distinction) was the currency of Australia from 1910 until 14 February 1966, when it was replaced by the Australian dollar. Like other £sd currencies, it was subdivided into 20 shillings (denoted by the symbol s o ...
, and, as part of the scheme, the objective of the Act was to end the use of private currency in Australia, which it had achieved.
Legacy
The Act was repealed by the ''Commonwealth Bank Act 1945'', enacted by the Chifley Labor government, which instead imposed a fine for issuing a private currency. S.44(1) of the ''Reserve Bank Act 1959'' now prohibits private and state currencies.s.44
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See also
* Section 51(xii) of the Australian Constitution * Private currency *Taxation in Australia
Income taxes are the most significant form of taxation in Australia, and collected by the federal government through the Australian Taxation Office (ATO). Australian GST revenue is collected by the Federal government, and then paid to the sta ...
* Australian dollar
The Australian dollar (currency sign, sign: $; ISO 4217, code: AUD; also abbreviated A$ or sometimes AU$ to distinguish it from other dollar, dollar-denominated currencies; and also referred to as the dollar or Aussie dollar) is the official ...
* Australian Notes Act 1910
References
Currencies of Australia Repealed Acts of the Parliament of Australia 1910 in Australian law History of taxation in Australia {{Australia-gov-stub