The New $10,000 Economy-Wide Cash Payment Limit (4) – Transactions That Are Proposed to Be Excluded

Exemptions from Cash Payment Limits

The Treasurer has the authority to create rules that exempt certain payments from the cash payment limit offences. These rules are outlined in proposed sections 12(5) and 13(3) of the Bill and are presented as legislative instruments.

Types of Exempted Payments

The draft Currency (Restrictions on the Use of Cash – Excepted Transactions) Instrument 2019 specifies six types of payments exempt from the cash payment limit:

1. Personal or Private Transactions: Payments made in a wholly private or personal capacity, excluding transactions involving real property. For example, private gifts, inheritances, or occasional private sales like selling a used car.

2. AML/CTF Reporting Entities: Payments reported under anti-money laundering and counter-terrorism financing legislation by entities with reporting obligations.

3. Payments by Public Officials: Cash payments legally required in the course of duties by public officials.

4. Cash-in-Transit Services: Payments exceeding the limit due to involvement in cash collection, holding, or delivery as part of a cash collection or delivery enterprise.

5. Digital Currency Payments: Payments exceeding the limit solely because they include digital currency (e.g., Bitcoin).

6. Payments with No Reasonable Alternative: Payments where no other payment method could reasonably be used.

Examples of Personal or Private Transactions Exemption

• Accepted Personal Transaction: Buying a second-hand camper van for private use and paying $10,000 cash falls under personal or private transaction exemption.

• Not a Personal Transaction: Paying $12,000 cash to a builder for constructing a deck and pergola for a holiday home constitutes an offence as it's part of the builder's enterprise.

• Reasonable Belief Exception: Selling a second-hand car to someone for private use, believing reasonably that the buyer is not acquiring it for enterprise purposes, exempts the seller from the offence.

Should you have any questions or need assistance, 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 (1)
• 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