Bank Notes Tax Act 1910 facts for kids
Quick facts for kids Bank Notes Tax Act 1910 |
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| Parliament of Australia | |
| An Act to impose a Tax upon Bank Notes. | |
| Date of Royal Assent | 10 October 1910 |
| Date repealed | 21 August 1945 |
| Status: Repealed | |
The Bank Notes Tax Act 1910 was an important law in Australia. It put a very high tax on banknotes that were printed by private banks. This law was created in October 1910 by the Fisher Labour Government. They used their power from the Australian Constitution to make laws about "currency, coinage, and legal tender," which means money.
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What Was the Bank Notes Tax Act?
This law said that any bank notes printed or re-used by a bank in Australia after March 1911 would be taxed. The tax was 10% each year on these notes if they were not returned to the bank. This was a very high tax!
Just before this, in September 1910, the government had passed another law called the Australian Notes Act 1910. This law created Australia's own national money, the Australian pound. The main goal of the Bank Notes Tax Act was to stop private banks from printing their own money. It worked, and private money was no longer used in Australia.
Why Was This Law Important?
The Bank Notes Tax Act 1910 helped Australia create its own national currency. Before this law, many different banks printed their own money. This could be confusing and made it harder to control the country's money supply. By making private bank notes too expensive to use, the government made sure that everyone used the new Australian national currency. This was a big step towards a more unified and stable economy for Australia.
What Happened to the Act?
The Bank Notes Tax Act 1910 was eventually cancelled. This happened in 1945 by the Chifley Labor government. They passed a new law called the Commonwealth Bank Act 1945. Instead of a tax, this new law put a fine on banks that tried to print their own money. Today, the Reserve Bank Act 1959 makes it illegal for private banks or states to issue their own money.
See Also
- Section 51(xii) of the Australian Constitution
- Private currency
- Taxation in Australia
- Australian dollar
- Australian Notes Act 1910
