By limiting cash payments, the Australian government prides itself on reducing money-laundering practices. On the occasion of the unveiling of the federal government's budget, on May 8, 2018, the local authorities announced their intentions in the face of this threat, aimed at making illegal the payment of cash payments exceeding $ 10,000. The new cash limit could also encourage the use of cryptocurrencies in the country.
50 billion dollars of black money
Treasurer of Australia, Scott Morrison, seems to support the restrictive policy applied and stressed the need to strengthen the working group on the economy by "mobile teams". The goal is to quickly identify companies that are subject to bad practices by taking cash, as well as people who engage in fraudulent cash transactions.
A hotline will also be set up by local authorities to report any illegal practices to those who wish.
The authorities reiterated that the measure applied would significantly limit tax evasion.
According to news.com.au website: "Cash payments are not subject to reporting requirements. This allows businesses that operate in cash to gain a competitive advantage. "
The same report announces the existence of numerous cases of "large payments, without receipts; for the purchase of houses, cars, yachts, harvesting products and merchandise. " 50 billion dollar black economy are invested in the aforementioned goods, which undermine legitimate business growth.
To reduce money laundering and criminal activity, the Australian Taxation Office will also strengthen its operations through audits and improvements to its data analysis systems.
The war against sneaky payments in cash
It seems that for the Australian government, the prohibition of cash payments over $ 10,000 for the purchase of goods and services is appropriate. This measure will come into effect on July 1, 2019.
Morrison said, "This will be bad news for criminal groups, terrorists and those who are trying to cheat on their tax or get a discount in the place of someone else. "
These comments echo his speech on the development of his fiscal policy.
It's not smart. It's not good. It's a crime.
The new regulatory provision states that individuals are required to pay via other payment methods, such as wire transfer or check, for amounts above that mentioned. However, this guideline does not apply to transactions between individuals. The sending of payments to financial institutions, is not concerned either. Michael Andrew, the chair of the working group said:
There is a strong sense of outrage from the community, which faces inequality and the unfair disadvantage created by the underground economy. I hope that by creating a level playing field, we will be able to reduce taxes, treat all businesses and workers fairly, increase community services or reduce debt, if all Australians abide by these rules. enacted.The popularity of crypto-currencies soared in 2017, the criticism of traditional finance players have been very fulminating. Billionaire Bill Gates has highlighted the connection of cryptocurrencies with money laundering, although this practice is as common, if not more, with fiduciary money. The security offered by crypto-currencies potentially alleviates money laundering problems , as much as that offered by cash payments. The fact that the Australian government is promoting the transition to a cashless society can be beneficial as the digital economy benefits all stakeholders.
Could the new cash payment limit encourage the use of cryptocurrencies for payments over $ 10,000? Share your opinions in the comments section below.