New Restrictions on Cash Payments

From 1 January 2020, four new criminal offences will be introduced for entities that make or accept cash payments of $10,000 or more.

Two of the proposed offences will carry a maximum penalty of two years’ imprisonment, and all will carry fines ranging from $12,600 up to $126,000.

It will be an offense to make or accept a cash payment that equals or exceeds the cash payment limit of $10,000. This limit also applies to any cash payment that is part of a series of payments made for a supply or as a gift where the total value of all amounts of cash included in the payments in the series equals or exceeds the cash payment limit.

The principal objective of the restriction is to prevent the use of cash to avoid scrutiny by the Commissioner of Taxation seeking to enforce the taxation law.

PLUS an ABC article provides more detail.

Karaco