The conspiracy that the real motive behind the Federal Government’s proposed money ban is to create an Orwellian state that gives banks full control over people’s money – and governments greater control over people’s behaviour during recessions – is “far-fetched”, according to the Reserve Bank.
The Reserve Bank has said the reason for the Federal Government’s $10,000 cash limit bill would be to fight the black market, not to Eliminate money.
A Senate inquiry into the proposed law has received thousands of submissions, with many worried it gives the authorities and banks too much management.
Stakeholders are also worried the law imposes severe penalties that could result in ordinary employees being unintentionally captured.
A controversial bill to prohibit cash payments of more than $10,000 and inflict two-year jail sentences for individuals using cash for purchases over that limit has enraged many members of the public who say that the Government shouldn’t interfere with their lawful right to shell out cash how they wish.
The proposed money ban bill passed the Lower House late last year and was expected to begin on January 1, but won’t become law until after a Senate inquiry looks into it.
The Federal Government has said the measure is meant to fight the black market, by stamping out tax evasion, money laundering and other offences.
Countless stakeholders have made submissions to the question. Among many other objections raised, some expressed a concern that the proposed law might leave people’s bank deposits vulnerable to adverse interest rates.
This is a situation whereby, rather than getting money on deposits, depositors must regularly pay to keep their money with the bank.
Several MPs, such as independent MP Andrew Wilkie, have said they wouldn’t be supporting the bill as it stands, with Mr Wilkie relaying people’s concerns that it was”designed to push people into the clutches of the banks”.