Australia's shadow assistant treasurer Andrew Leigh said many $100 banknotes were being used by criminals and that Australia should consider ditching the "kermit" all together.
University of New South Wales economist Richard Holden agreed.
"They're a vehicle for tax evasion and they're a vehicle for illegal activities," he said. "One of the main reasons people hold $100 bills is to hide them from tax authorities."
He said doing away with the predominantly green $100 note would help the Government to start to refill its depleted coffers.
"Some very credible estimates said if you got rid of all cash in Australia you would boost tax revenues by about $6 billion a year or more," he said. "So if you got rid of the $100 bill you might boost revenues by half of that."
