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Australian senators who are tired of people spending their own money using cash want to put a stop to it with an audacious plan to limit cash transactions to $10,000 with a penalty of jail time for anyone who oversteps. This may sound a bit harsh, but what they really want to crack down on is the so-called 'black market' of cash transactions and dodgy people like drug dealers who have wads of cash stacked away and of course criminals who buy houses with suitcases of bills and then sell the house a while later effectively cleaning the money.
The first iteration of the proposal received significant criticism as personal transactions, such as buying a car, would be caught in the net. The Australian government has been clear about its intention to move society to cashless payments which benefits the government in many ways. Already in place are systems to force house buyers to lodge monies for properties with an escrow service (PEXA) where their money can be stolen with no recourse and no way to avoid the system.
If passed, the law would come into effect on January 1, 2020 and would apply to all cash payments made to businesses with an ABN. The penalties, jail time and fine would apply to both the individual and the business part of the transaction.
There are a couple of exemptions to the cash ban.
- The $10,000 cash limit would not apply to individual-to-individual transactions, such as the private sale of a second-hand car.
- The limit also wouldn't apply when depositing or withdrawing money from a bank.
[...] Head of CPA Australia, Dr Gary Pflugrath, agreed there needed to be a crackdown on the black economy but said linking criminal activity to all large cash transactions was "a step too far".
"This legislation is attempting to deal with a symptom, not the cause, of the black economy. While the use of cash in a large transaction may be an indicator of risk, it does not prove by itself that the behaviour is criminal," Dr Pflugrath said.
"The presumption that only tax evaders, money launderers and criminals use cash, and the mindset that these new offences are required to address criminality, has resulted in a proposed bill and instrument that run counter to well-established criminal law principles and have the potential to affect many Australians.
"The focus on criminalising certain cash transactions is an extreme response to the problem of avoiding scrutiny."
(Score: 0) by Anonymous Coward on Monday August 26 2019, @04:24PM
American here. I've done this. Multiple times and in a couple different ways. There was no hassle either way. One example, I took out $14k to buy a car. The bank asked why I was taking out that much cash and I told them. No problem. They counted out a whole bunch of 100's for me. (note, the seller wanted cash and cash only - I wanted the car). The second time, a fairly new motorcycle at $11k. This time the seller was OK with a certified check. We both walked into the bank, they produced the certified check for me, I gave it to them, and the deal was done. No questions asked this time. I've also sold cars and ended up with more than $10k in cash. Same process. No hassles.
For the vast majority of cases, the bank doesn't care, they just need to fill in a box. You give them a legitimate reason, they fill in the box, and you are good to go. If anyone in the government has questions, I can provide the bill of sale for everything, so I'm not worried in the least.