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| Date repealed | 21 August 1945 |
| Status: Repealed | |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 (Cth) was an Act of the Parliament of Australia which imposed a prohibitive tax on banknotes issued by banks in Australia. 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 with respect to “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, 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The Act was repealed by the Commonwealth Bank Act 1945, enacted by the Chifley Labor government, which instead imposed a fine for issuing a private currency.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.
See also
- Section 51(xii) of the Australian Constitution
- Private currency
- Taxation in Australia
- Australian dollar
- Australian Notes Act 1910
