Government intensifies cash payments crackdown - Kelly O'Dwyer
The government has started its consultation process on plans to introduce an economy-wide cash payment limit of $10,000 as part of a wider effort to eliminate the black economy.
The government has started its consultation process on plans to introduce an economy-wide cash payment limit of $10,000 as part of a wider effort to eliminate the black economy.
The proposed measure was announced in the budget to ensure Australians receive a fair go and that illegal black economy behaviour is stopped in its tracks, said Minister for Revenue and Financial Services, Kelly O’Dwyer.
The cash payment limit is proposed to apply to payments made to businesses for goods and services from 1 July 2019.
In addition, transactions in excess of $10,000 will need to be made using electronic payments systems or by cheque.
Ms O’Dwyer said the consultation is about striking the right balance between cracking down on black economy participants and ensuring that businesses doing the right thing are not unduly burdened by increased red tape.
“The Black Economy Taskforce found significant risks to legitimate commercial behaviour can result from large, undocumented cash payments being made for cars, yachts and other luxury goods, agricultural crops, houses, building renovations and commodities,” Ms O’Dwyer said.
“We also know that businesses that insist on cash payment may be doing so to avoid their tax, retain welfare payments, or avoid child support and other obligations, and may therefore receive an unfair competitive advantage over those businesses that do the right thing.”
The consultation paper is available on the Treasury website. Submissions close on 24 June 2018.
By: Adrian Flores
28 MAY 2018
www.accountantsdaily.com.au
