The New $10,000 Economy-Wide Cash Payment Limit (1)

Cracking Down on Cash: Understanding Australia's New $10,000 Payment Limit

In recent years, the Australian Government has been taking steps to tackle what's known as the 'black economy.' This refers to activities like tax evasion and money laundering, which can harm the economy and society as a whole. One of the latest measures in this effort is the introduction of a new rule: a $10,000 limit on cash payments across the board.

Why the limit? Well, large cash payments that aren't properly documented can be used to avoid paying taxes or to hide money earned from illegal activities. The government wants to put a stop to this by making transactions more transparent. So, from now on, any payment over $10,000 needs to be made electronically or by cheque.

This new rule is part of a bill called the Currency (Restriction on the Use of Cash) Bill 2019. Originally set to start on January 1, 2020, it's currently being reviewed by a Senate Committee. Once the bill passes, a new start date will be decided, and it won't apply to past transactions.

Now, businesses already have to report cash payments of $10,000 or more for certain services, like financial services or gambling, to help prevent money laundering and terrorism financing. This is covered by existing laws like the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 and the Financial Transaction Reports Act 1988.

To enforce the new $10,000 limit, the government plans to create two new types of offenses:

1. A strict liability offense: This means you can be charged even if you didn't mean to break the law.
2. An offense with a fault element: This requires some level of intent, knowledge, recklessness, or negligence.
   
   

If you have any questions about how these changes might affect you, feel free to reach out to Tax Ideas Accountants & Advisers at +61 2 83181545 or book an appointment through our live calendar.

• The New $10,000 Economy-Wide Cash Payment Limit (2) – Strict Liability Offences
• The New $10,000 Economy-Wide Cash Payment Limit (3) – Offences with a Fault Element
• The New $10,000 Economy-Wide Cash Payment Limit (4) – Transactions That Are Proposed to Be Excluded

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