The Bank Notes Tax Act of 1910 effectively ended the era of private currency in Australia. A private currency is a currency issued by a private institution. ...
It is a Federal law that imposes on all bank issued currency a tax of ten per cent. The tax applies on "all bank notes issued or re-issued by any bank in the Commonwealth after the commencement of this Act, and not redeemed".
The effect of the tax was to bring to an end the historical practice of private sector currency creation in Australia.
Prior to the act of 1910 the dominant form of currency in Australia was state issued currency and bearer redeemable promissory notes issued by private banks and denominated in pound sterling. A promissory note is a contract detailing the terms of a promise by one party (the maker) to pay a sum of money to the other (the payee). ...
The Act allowed the Federal government Treasurer to issue notes in denominations of 10s., £1, £5, and £10 and any multiple of £10. These were to be legal tender and payable in gold coin on demand at the Commonwealth Treasury.
This act perpetuates the effective prohibition of private currencies in Australia.
Section 51(xii) of the Australian Constitution is a subsection of Section 51 of the Australian Constitution that gives the Commonwealth Parliament the right to legislate with respect to “currency, coinage, and legal tender. ...
In 1901 notes in circulation in Australia consisted of banknotes payable in gold coin and issued by the trading banks, and Queensland Treasury notes.
Banknotes circulated in all States except Queensland, but were not legal tender except for a brief period in 1893 in New South Wales.
Notes of both categories continued in circulation until 1910, when the AustralianNotesAct1910 and BankNotesTaxAct1910 were passed by the Commonwealth Parliament.
The Australian dollar, AUD or A$, is the official currency of the Commonwealth of Australia, including the Australian Antarctic Territory, Christmas Island, Cocos (Keeling) Islands, Heard Island and McDonald Islands and Norfolk Island, as well as the independent Pacific island states of Kiribati, Nauru and Tuvalu.
Also passed in that year was the "BankNotesTaxAct" which imposed a tax of ten per cent per annum on "all banknotes issued or re-issued by any bank in the Commonwealth after the commencement of this Act, and not redeemed".
In 1910 the first truly national Australian silver coinage was introduced in denominations of threepence, sixpence, one shilling, and two shillings (one florin).
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