Bank Notes Tax Act 1910

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.^[1][2] 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.

Bank Notes Tax Act 1910
Parliament of Australia
Long title An Act to impose a Tax upon Bank Notes.
Citation	No. 14 of 1910
Royal assent	10 October 1910
Repealed	21 August 1945
Repealed by
Commonwealth Bank Act 1945
Status: Repealed

The Act

Private currency issued by the City Bank of Sydney c. 1900

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."^[2] The tax commenced in March 1911.^[3]

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The Act was repealed by the Commonwealth Bank Act 1945,^[4] enacted by the Chifley Labor government, which instead imposed a fine for issuing a private currency.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.^[5]

See also

• Money portal

• Section 51(xii) of the Australian Constitution
• Private currency
• Taxation in Australia
• Australian dollar
• Australian Notes Act 1910