The Currency (Restrictions on the Use of Cash) Bill 2019 set to become Law
- Arnold Shields
- Mar 12, 2020
- 2 min read
Updated: May 21
In October 2019, the Australian Government proposed a bill to crack down on tax evasion and illegal cash transactions. Aimed at stopping criminal organisations from laundering illicit funds through luxury purchases such as jewellery, cars and real estate, this bill sets a firm cap on high-value business cash payments.
The bill has passed the House of Representatives and is now under review by a Senate inquiry before it can become law. Despite public backlash, the Morrison government is likely to gain Labor’s support, pushing it through Parliament.
What Does the Bill Propose?
If passed, the legislation will make it a criminal offence to make or accept business cash payments of $10,000 or more. This includes:
A maximum fine of $25,200
Up to two years’ imprisonment
This applies to all payments to businesses with an ABN. The $10,000 limit includes:
Lump sum or split payments
Purchases such as vehicles, building renovations, boats, and property
Who Is Exempt?
The following transactions are not covered by the law:
Private transactions between individuals (no ABN)
Payments to or from financial institutions
Digital currencies (like Bitcoin) – not currently included
Why Is It Controversial?
While it targets criminal syndicates and tax cheats, many in the community feel this bill unfairly penalises ordinary Australians. Critics argue that:
Tradespeople, pensioners, and some ethnic communities, who rely on or save cash, will be most affected
It restricts personal financial freedom
It may force more people into the formal banking system, which not everyone trusts or uses
The law is also seen as a move towards a cashless society, with privacy advocates calling it a step too far.
What This Means for You
If you operate a business or regularly make high-value purchases, you’ll need to reconsider how you accept or make payments. Keeping transactions traceable and within the proposed cash limit will be essential to avoid penalties.
We’ll keep you updated as the Senate inquiry progresses and let you know once this bill becomes law.
Need Advice or More Information?
If you have concerns about how this bill might affect your tax reporting or your business operations, contact the team at Dolman Bateman.
Disclaimer:
The information provided in this article is general in nature and does not constitute personal financial, legal or tax advice. While every effort has been made to ensure the accuracy of this content at the time of publication, tax laws and regulations may change, and individual circumstances vary. Dolman Bateman accepts no responsibility or liability for any loss or damage incurred as a result of acting on or relying upon any of the information contained herein. You should seek professional advice tailored to your specific situation before making any financial or tax decision.
