Australia to Ban Cash Purchases above $10,000 (Submissions Close 15 Nov 2019)

Diji1 on 11/05/2018 - 22:40
Last edited 12/11/2019 - 23:52 by 2 other users

The Turnbull government has turned its attention to the “black economy” in an attempt to raise billions of extra dollars and intends to limit cash payments for purchase goods and services to $10,000.

As part of the cash-in-hand crackdown the government will introduce an economy-wide cash payment limit of $10,000 to reduce money laundering and tax evasion, to apply from 1 July 2019.

https://www.theguardian.com/australia-news/2018/may/08/austr…

All while the top 500 businesses by market cap pay an effective rate of 2% with most of that paid by the lower half - while they use the infrastructure that your taxes pay for.

Isn't it about time you voted for someone other than LibLabs to stop this continued crackdown on individuals while big business pays almost nothing?

Update:

In the 2018-19 Budget, the Government announced it would introduce an economy-wide cash payment limit of $10,000 for payments made or accepted by businesses for goods and services. Transactions equal to, or in excess of this amount would need to be made using the electronic payment system or by cheque. The Black Economy Taskforce recommended this action to tackle tax evasion and other criminal activities.

SMH

Treasury: Currency (Restrictions on the Use of Cash) Bill 2019

—

Update 2:

3 days left to make a submission against the cash ban!

NOTE: If you made a submission to Treasury in August against the cash ban, you need to do another one to the Senate. They are different inquiries. However, you can adapt your submission to Treasury to re-submit to the Senate. Submissions are due in 4 days—15 November. Every submission is crucial! The easiest way to make a submission is to send an email to:
[email protected]

Financial

Comments

      • subywagon on 12/05/2018 - 18:23

        That's it.

      • [Deactivated] on 12/05/2018 - 21:35

        Nothing to do with 'freedom' everything to do with tax and people not paying it.

    • ItsMeAgro on 12/05/2018 - 20:48
      +4

      Exactly this.

      Rich people get annoyed that working-class people can avoid tax almost as easily as they do.

    • Eeples on 18/05/2018 - 00:16

      I didn’t know tradies provided that service.

  • Clear on 12/05/2018 - 09:50

    It means transactions over $10,000 will have to be made through an electronic payment system or cheque when purchasing goods or services.

    Important part right here. They seem to be limiting a single physical cash transaction up to $10,000. Not several transactions that will total 10k?

    • chrisd262 on 12/05/2018 - 14:29

      How will this stop buying a private car for cash?

      • Clear on 12/05/2018 - 14:35
        +1

        It won't.

      • [Deactivated] on 12/05/2018 - 21:47

        It doesn't but I'd never buy or sell one for cash anyway, much too risky and inconvenient.

  • picklewizard on 12/05/2018 - 10:23
    +3

    I refuse to accept anything other than cash when selling a car (my favourite thing is when people ask me "whats your best price for cash" as if I'm some kind of business).

    Turnbull - f-ck off.

    • Pecan on 12/05/2018 - 12:29
      +6

      Settle petal, it doesn't apply to your situation.

      "From July 1, 2019, cash payments of more than $10,000 made to businesses for goods and services will be banned"

    • Harold Halfprice on 12/05/2018 - 17:02

      Interesting. I recently sold my car.

      I refused to accept anything other than a bank cheque. I didn't want to have such a significant amount of cash lying around, that I accepted from a stranger, that could be easily stolen or counterfeit. Especially when the hand over was likely to be done after hours, when banks are shut.

      • HoracePinker on 12/05/2018 - 23:24

        you do realize that who ever has the bank cheque is entitled to that money. There was a case of of a bank cheque being lost in the mail, the bank cannot issue you another one and cancel the old one because the money is taken out of the account. if the cheque is destroyed the money is destroyed (well it becomes bank money in limbo). So it is like cash
        http://www.news.com.au/finance/business/other-industries/mai…

        • spedohero on 13/05/2018 - 09:12

          Bank cheque and bank draft is different.

    • [Deactivated] on 12/05/2018 - 21:46

      Weird. I have a mate that backed out of selling his car for cash because it seemed potentially dodgy (counterfeit, rego may not get transferred properly etc). I'd never accept cash for more than a small transaction, it's way too risky.

  • cheapisgood on 12/05/2018 - 10:39
    +5

    The government is dumb. People can just do split transactions then of $9,999 then its technically legal.

    • [Deactivated] on 12/05/2018 - 11:03
      +2

      No.
      Deliberately splitting transactions to values below the reportable threshold is in itself an illegal activity.

      • whooah1979 on 12/05/2018 - 12:00
        -3

        Deliberately splitting transactions to values below the reportable threshold is in itself an illegal activity.

        Could you please provide a link to this bill?

        • Slippery Fish on 12/05/2018 - 14:14

          Sure it's $9999.99 :) pay less for cash rofl

        • [Deactivated] on 12/05/2018 - 15:23
          +3

          http://www.austrac.gov.au/acg-chapter-7-reporting-ttr.html#s…

          Next time, please use Google.

        • whooah1979 on 12/05/2018 - 18:29
          +1

          @KaptnKaos:

          Deliberately splitting transactions to values below the reportable threshold is in itself an illegal activity.

          this comment is misleading.

          ttr requires that reporting entities report transactions under the aml/ctf act.

          reporting entities must apply for registration before providing their services. registration covers the following entities.

          10 Section 5 (definition of registration)
          Repeal the definition, substitute:
          registration means:
          (a) in, or in relation to, Part 6—registration as any of the following:
          (i) a remittance network provider;
          (ii) an independent remittance dealer;
          (iii) a remittance affiliate of a registered remittance network provider; or
          (b) in, or in relation to, Part 6A—registration as a digital currency exchange provider.

          this means at john doe may walk into a tool shop and purchase tools for $15k and pay with cash instalments of two $7.5k. the tool shop isn't required to report this transaction under the conditions of ttr.

        • kingmw on 12/05/2018 - 21:20

          @whooah1979: Except what is the business going to do with the 15k cash?? Deposit it into their bank account and then AUSTRAC must be notified. So a business to save themselves this hassle would never accept such a large amount of cash e.g. car dealers, real estate agents etc.

        • HoracePinker on 12/05/2018 - 23:32

          @kingmw:
          so what is coles etc going to do if they receive over 10k cash in a day from multiple transactions but then go to bank it at end of day/ week whatever they do.

        • kingmw on 13/05/2018 - 08:36

          @HoracePinker:
          1) Coles and woolworths have no minimum spend on credit/debit cards and no fees so they are encourage the use of digital money and not physical money.
          2) They usually accept small amounts of cash <$200 which add to a large amount which I expect they must have some type of exemption from AUSTRAC.
          3) I imagine they would never accept cash when they sell a commercial quantity of goods.

          Also they have cashier balancing frequently in the back office to prevent one cashier holding large amounts of cash at any given point in time.

  • TheBilly on 12/05/2018 - 11:20
    +3

    Isn't it about time you voted for someone other than LibLabs to stop this continued crackdown on individuals while big business pays almost nothing?

    There is no one else to vote for, they all turn to shit once they enter the fold.

    • [Deactivated] on 12/05/2018 - 12:14

      Just vote independent.
      They will do whatever is popular in their electorate to keep their nose in the trough.

      • RockyRaccoon on 12/05/2018 - 12:24

        Like spend money!!

        isnt that the issue

        We elect those who tell us what we want.

        And its always better to take it from other person than ourselves

        With apologies to NIMBY

        NIMBP

        P=Pocket

        Yep and I'm the same…

    • StrayfireX on 12/05/2018 - 12:25
      +2

      We should make an Ozbargain Party.

      Raise the tax free import threshold back to $1,000, maybe $2,000.

      Replace Centrelink with Enelooplink. Batteries are rechargeable, money is not.

    • outlander on 12/05/2018 - 15:07
      +1

      You're not wrong, but that doesn't mean you can't make a difference. Sleepyweasel (above) is right. The more divided the power base of politics, the harder it is for anyone to buy them all off. Finding a way to influence one big party is much easier than trying to influence 50 individuals, each of which is completely willing to spill the beans if it helps progress their career.

      It's not about picking the best option. In this case its about picking the least worst

    • No ONE on 12/05/2018 - 13:52
      +2

      Hold your horse ‘reclaim Australia’. It ain’t personal against you.

    • fantombloo on 12/05/2018 - 15:02
      +1

      Assumption that OP is communist is intuitive but unfounded - they could in fact be fully right libertarian / laissez-faire capitalists / LDP and against the "corporate capitalism" we currently have. But without their speaking up we'll never know.

    • BumbaT on 12/05/2018 - 16:54
      +3

      lol pop a vein allan

    • gravel on 13/05/2018 - 08:59

      And that 72 billion is a fraction of what is really owed. Get rid of all the scams companies use like input pricing rorts, cross border loans, syphoning and we will collect the correct amount of tax. And why are they not giving their workers a decent pay increase? Why did they fight for the removal of penalty rates? Answer - Greed

  • Charity on 12/05/2018 - 13:52

    Thanks for posting, Diji

    Your posts are always thought provoking.

    BTW, who is worth voting for in Oz?

    • smuggler on 12/05/2018 - 14:18
      -1

      The one who doesn't sell our country to communists

      • macrocephalic on 12/05/2018 - 14:29

        Why single out communists?

        Given that China is the only 'communist' country which we have significant trade with, the party who "doesn't sell our country to communists" is the party who imposes the strictest trade restrictions on trade with China. AFAIK our largest sales to China are things we dig out of the ground. The LibNats are certainly very eager to sell coal to China. Labor swing one way or the other on the notion - depending on which electorate they're in at the time.

        • whooah1979 on 12/05/2018 - 14:42
          +2

          There is nothing communist about China. Their gdp is only second to the USA. The Chinese people is as capitalist as is it gets.

        • fantombloo on 12/05/2018 - 15:11
          +1

          @whooah1979: People cannot see the difference between simple authoritarianism and communism because of years of anti-commo propaganda.

        • Charity on 12/05/2018 - 15:49

          I think ideology these days is secondary to corruption.

          Is the polly corrupt? - if yes, ideology makes little difference.

          Just wanted to hear if there were any polly's left in Oz that still put the people first. There were a handful back in the day, just wanted to see if there where any remaining?

      • OzzyOzbourne on 14/05/2018 - 14:15
        -1

        As you were negged, I'm going for the one who does sell our country to the commies!

    • Illian on 12/05/2018 - 15:26

      Whoever comes along after all the current regressive politicians are dead.

  • HeWhoKnows on 12/05/2018 - 15:52
    +7

    This is part of a GLOBAL move by governments to ELIMINATE cash all together.
    Its about removing our cival Liberties.
    By doing so they can monitor your every move, every spend, everything you do.
    They can control your life and your destiny.
    They can switch your ability to buy and sell goods and necessities on and off at the push of a button.
    This has nothing to do with the Liberal or Labor parties - they re just the servants
    This is about the Global Elitists slowly gaining total control over our governemnts and our lives.

    • Slut on 12/05/2018 - 18:01
      -1

      You sound like my ex-boyfriend.

      • idonotknowwhy on 13/05/2018 - 00:13
        +4

        Did he run off when you turned out to be a "Global Elitist"?

      • Meconium on 13/05/2018 - 14:10
        +3

        OK, Bianca…

    • whooah1979 on 12/05/2018 - 19:23
      +3

      Some people are so eager to relinquish their liberties to the government without asking who will benefit from it.

    • idonotknowwhy on 13/05/2018 - 00:12

      How will the stop decentralized anonymous censorship-resistant payment methods such as Zencash?

    • RocketSwitch on 14/05/2018 - 12:57

      We barely use cash as it is already, drama queen.

  • BumbaT on 12/05/2018 - 16:55

    can't wait until distributed ledger technologies like hashgraph and blockchain take over.

  • CandyMan on 12/05/2018 - 17:06

    Not surprised considering the limit on coin transactions.

    A payment of coins is a legal tender throughout Australia if it is made in Australian coins, but this is subject to some restrictions about how much can be paid in coin. According to the Currency Act 1965 (section 16) coins are legal tender for payment of amounts which are limited as follows:
    not exceeding 20c if 1c and/or 2c coins are offered (these coins have been withdrawn from circulation, but are still legal tender);
    not exceeding $5 if any combination of 5c, 10c, 20c and 50c coins are offered; and
    not exceeding 10 times the face value of the coin if $1 or $2 coins are offered.

    • kev98 on 13/05/2018 - 22:27

      I think this is more for the annoying type that goes in to Woolies with $100 worth of 5c coins

  • [Deactivated] on 12/05/2018 - 17:07

    I sometimes wonder if money laundering goes on in ebay?
    I have seen items worth $2.00 having a buy it now price around $1,000.00 and I have seen it too many times for it to be a typo.

    • Eeples on 12/05/2018 - 17:58
      +2

      I think this happens when an item is temporarily out of stock.

    • gravel on 13/05/2018 - 09:00
      +2

      This is usually used when an item is temporarily out of stock to maintain visibility but stop sales.

    • bardlee on 13/05/2018 - 09:22
      +1

      I've wondered this as well. Some have hugely exaggerated prices with 12 sold on it as well. Very suspicious.

      • kev98 on 13/05/2018 - 22:28
        +1

        Sold at what price though?

  • [Deactivated] on 12/05/2018 - 17:26
    +2

    meanwhile the actual black market uses crypto

    This is not about the Black Market, this is about the Government spying on what we are up to.

    • HoracePinker on 12/05/2018 - 23:34

      Whaaat? you mean someone actually spends crypto … how does that work I thought you just invest in it hehe

      • idonotknowwhy on 13/05/2018 - 00:10

        Can only HODL for so long :(

      • mezje on 14/05/2018 - 11:49

        Not sure if /s missed but crypto is still widely used for heaps of criminal activity.

        • RADICALIST on 14/05/2018 - 13:30

          and cash isn't used for criminal activity?

        • mezje on 14/05/2018 - 13:47

          Not saying cash isn't just saying crypto is still used as more than just an investment, one of those uses is criminal activity.

  • frostman on 12/05/2018 - 17:39

    This will impact the Chinese more than anything….ouch
    That's what happens when you take the SC Sea

    • smuggler on 13/05/2018 - 19:15
      +1

      I was at a pop up shop today and wasn't sure if they accepted card. All these Chinese people were paying for the stuff with several $100$/$50 bills and when I finally got to the till, the Chinese owner put the eftpos machine in front of me even before I took my wallet out. lol

  • Save Medicare on 12/05/2018 - 17:49

    If they wanted to raise revenue why don't they increase top bracket marginal tax or corporate tax?

    • Chuppa on 12/05/2018 - 20:14

      who do you think votes for them? :P

    • idonotknowwhy on 13/05/2018 - 00:10

      Because entities within this category will practice further 'tax minimization' to avoid it.

  • JIMB0 on 12/05/2018 - 17:52
    +1

    This could boost the value of near new second hand cars as people can buy them with undeclared cash. Could be profitable to buy a new Mercedes then sell it to the owner of a business that largely deals in cash.

  • Geryatric on 12/05/2018 - 18:18
    +2

    excellent policy

  • ebayer007 on 12/05/2018 - 19:38
    +2

    Ideally government should change this to $5000. $10k is still high.

  • sabracad on 12/05/2018 - 19:57
    +1

    All while the top 500 businesses by market cap pay an effective rate of 2%.

    Source?

    Isn't it about time you voted for someone other than LibLabs to stop this continued crackdown on individuals while big business pays almost nothing?

    Who do you propose and what policies do they have that would improve things and how would they propose to have them passed as law? As bad as the Libs are, Labs would be worse. As bad as Labs would be any alternative would be catastrophic.

    • fantombloo on 13/05/2018 - 12:05

      any alternative would be catastrophic.

      source?

    • [Deactivated] on 13/05/2018 - 15:37
      +1

      The real question the OP should be asking is on Negative Gearing.

      All major parties policies suck.

      The Treasurer cannot articulate difference between a property tycoon and a mum/dad investor and the ALP negative gearing policy taken to the last election was useless as it did not apply to existing wealthy investors with more than a handful of properties.

      In a country where the income tax rate is based on your wealth there really needs to be a line drawn against the top 10-20% negative gearers. This could easily be implemented as cutting off negative gearing once the total value of your properties hits a certain threshold.

  • Chuppa on 12/05/2018 - 20:13
    +5

    Think their main focus isn't crime, but to track where every cent is in the country. Gives the ATO and Human Services more data for their matching algorithms to squeeze more money out of people.

    If only there was a data matching system for politicians that lined up their lies and deceit against what they promise, followed by hard penalties.

    • kingmw on 13/05/2018 - 19:26
      +1

      Tax evasion is a crime as well. So is welfare fraud etc.

  • OzzyOzbourne on 12/05/2018 - 21:09
    +1

    Does that mean tradies won't do jobs over $10k now so they can still avoid paying tax?

    • youknow on 12/05/2018 - 23:05
      +1

      They'll just split it in to "progress payments" (most do anyway!)

    • [Deactivated] on 14/05/2018 - 23:58

      All jobs are $9,999 or less

  • DiscoJango on 12/05/2018 - 22:32
    +5

    guess the government needs some help paying for those $5000 helicopter lunch trips.

  • HoracePinker on 12/05/2018 - 23:43

    I guess people will look to other means of having undeclared wealth like gold bullion. Much easier for a drug dealer to stockpile bullion than cash as Walter white demonstrated in breaking bad ;)

    • DiscoJango on 13/05/2018 - 09:05

      walter white was the picture of success, going from strength to strength, and ultimately led the perfect family life.

  • idonotknowwhy on 12/05/2018 - 23:56

    Monero (XMR)
    Zcash (ZEC)
    Zencash (ZEN)
    Dash (DASH)

    • Captain M on 13/05/2018 - 08:24
      +1

      You forgot PIVX

  • Captain M on 13/05/2018 - 08:23

    So how would they enforce it? What's stopping me from paying my cousin in cash?

    • kingmw on 13/05/2018 - 08:38
      +2

      This applies to businesses accepting cash, no individuals from giving each other cash or accepting cash.

    • DiscoJango on 13/05/2018 - 09:07

      small scale it wouldnt matter, you could split the deposit into $5k batches. the government is talking about large scale business who deal in $10k+ on a daily basis. eg: caryards. yes, people buy brand new cars with cash. not uncommon. this will then have a follow on effect to other business, such as armaguard, who will no longer have large quantities of cash to transport.

  • fs2017 on 13/05/2018 - 10:04
    +3

    To be fair to tax payers, cash transactions over AUD 100 should be banned. People earning over 200k in cash and paying tax of a 50k wage earner is very unfair.

    • RocketSwitch on 14/05/2018 - 13:00

      What can say? What can do?

  • Cheap as chips on 13/05/2018 - 11:10

    Politics really infuriate me. I always hear excuses that the 'top 500' would go elsewhere if they didn't have tax breaks, etc…. You know what, let them go because someone else will the provide the same service, preferably locally.

    The mines are an absolute joke, so you get a Chinese owned mine site that sells to their sister company in China. The mine site in Australia makes a loss because they set their ore prices low therefore avoiding paying tax in Australia. What the hell is that about?

    Can't really see the crackdown on $10,000 cash having much of an impact because as already stated people will get around it by paying installments etc… Would rather see efforts being put into cracking down on the 1%'s

    • [Deactivated] on 13/05/2018 - 15:17

      Think in the minds of big business. Do business in a country where unions drive up the cost of business by causing havoc or coming up with bogus schemes or set up shop with low wages and little or no union influence overseas.

      Big business create jobs and pay some tax. Unions on the otherhand create no jobs, drive businesses to the ground and pay no tax.

      If Bill Shorten is so concerned about taxes go after his wealthy mates at the CFMEU and require them to pay tax even at a concessional rate it would be better than what they pay ATM.

      • freakatronic on 14/05/2018 - 13:47
        -1

        Yep, unions act like heroes & saviours. All they've done is all socialists can ever do - gut the means of production at the cost of any efficiency, and make it so that no one can earn a living anymore. I would never look for Australian staff.

    • greennick on 13/05/2018 - 23:45

      You have no idea how Transfer Pricing works.

  • Viospeed on 13/05/2018 - 15:05
    +1

    This would have occurred no matter which party was in power.

  • [Deactivated] on 13/05/2018 - 15:10
    -2

    The OP should declare their interest in the ALP, The Greens or The Union movement when posting something politically motivated. Quoting The Guardian is a dead giveaway.

    Far enough to point out the $10,000 cash thing but the big business nonsense you go on afterwards is just the ramblings of a ALP/Greens supporter fishing for votes in the 2019 election.

    Worse still is how biased journalism is in Australia - perhaps they are all union members. Big story on fake Liberal tradie but very few stories on fake struggling mother in recent ACTU adverts.

    • whooah1979 on 13/05/2018 - 17:34
      -2

      Far enough to point out the $10,000 cash thing but the big business nonsense you go on afterwards

      good catch. 1m tradies voting for the left would be big win for them.

    • RocketSwitch on 14/05/2018 - 13:01

      Fake news.

  • Ryxxi on 13/05/2018 - 17:59

    Good luck finding a party that will actually tax the top businesses. BIg businesses support almost every party..so yea.

  • smuggler on 13/05/2018 - 19:12
    +1

    I work for big business. I need da job. Plz don't tax them anymore. Already seen 400 jobs from my company go overseas and be axed last year because of these increased costs.

    • kingmw on 13/05/2018 - 19:38

      There are many reasons why a company moves their workforce offshore and corporate tax rate is only a small consideration in their decisions. Most of the time it's because staff costs are significantly cheaper overseas where you can hire 2+ people for the same job in Australia. Unfortunately if it is backend (i.e. no direct customer contact) and able to be moved offshore then they will do it regardless of a 5% company tax rate reduction.

      Also there are plenty of other ways they use to avoid paying tax.

    • [Deactivated] on 13/05/2018 - 20:26
      -2

      How is paying your fair share unfair?
      We could attract heaps of companies if we charge no tax.
      Let them pay $2.50 an hour and a workforce would still come .
      Better than living in squalor in a country with no rights, right.
      Slavery is making a comeback , so think , what kind of place do you want to live in.
      South Africa? Where people will cut your hand off for a ring?
      The people make the country !,
      but unions are bad?
      Farking stupid ,stupid ,stupid.

Login or Join to leave a comment
Login Join