Government seeks to relax $ 10,000 cash limit amid backbench concerns


The Morrison government has sought to avoid internal and interbank anger over plans to ban cash payments of $ 10,000 or more, outlining a series of exclusions that it says will protect those who still wish to use banknotes and coins. cents.

The rules governing the new laws regarding large cash payments make it clear that they will exclude freebies, private transactions such as used car sales, and situations where people have no other way to pay than cash.

The rules governing a new law effectively prohibiting the use of more than $ 10,000 in cash have included several major exclusions.Credit:iStock

This follows concerns over the proposal, announced in 2018 and stemming from the government’s Underground Economy Task Force which recommended a crackdown on large cash transactions in an effort to prevent tax evasion and catch organized criminals.

Under the laws, businesses will face criminal and civil penalties starting next year if they make or accept cash payments over $ 10,000.

While the government has championed the plan, it has come under heavy criticism internally and among community organizations for its “big brother” approach.

One Nation has said it will not support the measure, with Senator Pauline Hanson being a longtime critic of the laws. “Indeed, if you are a person who keeps cash and uses it to buy a new small car, for example, you will face the real threat of two years in prison and a fine that would probably exceed the value of the vehicle, ”she added. Hanson said in a Facebook post last month.

A Senate investigation is underway into the laws but the rules for its implementation were made public late Friday night.

They show six relatively broad exclusions from the laws, including personal or private transactions, except those involving property.

Public officials who have to make cash payments as part of their job will be excluded, as will payments when large volumes of money are physically moved.

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