iscoverA Victorian accounting firm has called for a "totally cashless" Australian economy in a submission to the federal government's tax discussion paper.
Victorian firm calls for cashless economy
25 June 2015
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4 minute read
In the submission, Mansfield Accounting & Taxation suggested a cashless economy would assist the Australian government in achieving a fairer tax system for all Australians.
According to the firm, the benefits of such an economy are far-reaching.
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The submission outlined several arguments for getting rid of 'physical' cash, such as:
• “The economy would benefit from an immediate stimulus as many citizens may prefer to spend their cash reserves rather than bank or invest them
• Going forward, all income will be taxable – including proceeds of crime and the cash economy, which will cease to exist
• Taxation will be much fairer as all income will be captured
• Wage and salary earners will applaud it as they are resentful of the cash economy
• The government will achieve savings in not having to print money
• It will stop tax cheats – for example, those on Centrelink benefits working for cash wages
• It will help reduce compliance costs in the tax system
• Business income would increase without the associated increase in business expenses, helping to spread the tax burden.”
The firm said to implement such a system, the government would need to allow sufficient time for citizens to bank, invest or otherwise dispose of any cash they hold, suggesting a window of six months would be appropriate.
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