A massive cash crunch is threatening to destroy the Commonwealth’s fledgling cash exchange and the Commonwealth is struggling to get the system up and running.
The Department of Finance estimates there are only about $15 million in cash remaining from the $1.5 billion in Commonwealth Government cash being held by banks.
A cash shortage in the Commonwealth has resulted in a shortage of cash for the Commonwealth Government, leading to the abrupt closure of Commonwealth Government businesses, including hospitals and schools, as well as a number of Commonwealth institutions.
The Commonwealth is now asking for the assistance of the Federal Government to get cash into Commonwealth businesses and hospitals.
The Commonwealth is trying to get its hands on $7.5 million from the Federal government to cover a cash shortage at the cash exchange.
But that is just a small slice of the Commonwealth cash being available to businesses, which could run into the millions of dollars.
The federal government has been offering to cover the Commonwealth Cash Transfer Facility’s cash shortfall, with the aim of getting it running again by the end of next week.
The cash crunch in the cash exchanges has forced the Commonwealth to cut its funding for hospitals, schools, and hospitals in the state of Victoria, while schools in the Northern Territory have been forced to close.
More than 200 Commonwealth businesses are closed at the moment, including schools, hospitals, the Federal Court, hospitals and hospitals and health facilities.
There is a shortage at Commonwealth Government offices in Victoria, with some staff being offered contracts to work at Commonwealth institutions or in the private sector.
“In the meantime, the Commonwealth needs to provide emergency cash assistance to Commonwealth Government agencies and businesses, with $7 million coming to the Department of Public Works and Government Services,” a spokesperson for the department said.
But the cash crisis is also impacting on the Federal Budget.
The Federal Government’s cash balance is only about half the amount it is supposed to have, which has caused some businesses and organisations to cut back on spending.
“The Commonwealth has been struggling to access cash from the Commonwealth, particularly in relation to the Commonwealth Financial Transaction Tax,” a spokeswoman for the Treasury said.
“This has resulted, in some cases, in financial stress for businesses and affected individuals, and the Federal Treasury is asking for urgent assistance from the Treasury.”
But there is a silver lining for businesses.
“There is an opportunity for businesses to gain a greater return on their investment,” the spokesperson said.
Topics:business-economics-and-finance,financial-services,wealth-policy,government-and‑politics,business-administration,government,state-parliament,vic,federal—state-issues,state—region-4870,nsw,vic-2500,australiaMore stories from Victoria