Australian banks call to scrap the avocado.

They are not something you see in your wallet every day, but the vividly coloured Australian $100 note, sometimes known as the ‘avocado’ may be scrapped if the Reserve Bank of Australia heeds calls from analysts.

“Removing large denomination notes in Australia would be good for the economy and good for the banks,” UBS analysts led by Jonathan Mott said in a note to clients on Monday. Some of the benefits included more deposits, reduction in crime and an increase in tax revenue.

There are 334 million $100 notes in circulation, but they are one of the most rarely seen. Like the €500 note, the AUS$100 is often used to facilitate money laundering and for tax evasion. Examples include paying for ‘big ticket’ items and house renovations in cash and so avoiding the GST (equivalent to UK VAT).

I think we are in very uncertain economic times, so people are keeping cash to hand, almost like money under the mattress, in case things go pear-shaped…

There’s a lot of talk about the cashless society, although I can’t see that happening in the very near future…We are certainly in a less cash society.” Professor Worthington of Swinburne University stated in an interview with 720 ABC Perth.

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