The proposed new cash limit legislation being introduced by the Australian Government is a game-changer but no one really knows about it. The legislation would limit the use of actual hard cash (not including bank transfers) to less than $10,000 and would come fully into force on Jan 01, 2020. The goal of the legislation is to minimise tax evasion, money laundering and other illegal activities.
That looming deadline might just be lighting up your radar as it impacts nearly all of us. But the truth of the matter is that many people have no idea what the law is and the implications on their personal and business interests.
What is the new draft Currency Bill?
- It’s an economy-wide cash payment limit of $10,000 for payments made or accepted by businesses for goods and services.
- It begins in January 2020, if the law is passed.
- The limit applies to all cash transactions equal to or in excess of $10,000.
- The cash payment limit will apply to the total price of a single supply of goods or services, regardless of whether the price is split into a series of payments over time.
- Non-compliance is a criminal offence and carries significant penalties. The maximum penalty for these offences will be approximately $25,000 or 2 years imprisonment or both.
How can we help?
At Valenta BPO we pride ourselves on understanding and adapting to market changes quickly and efficiently. We can offer a range of services to protect you and your business including:
- Strategic advisory services to both public and private companies.
- Development of a business and process strategy to comply with the new requirements.
- Creation of a clear and simple plan that takes your business from strategy to implementation.
- Staff training and education.
- Designing and implementing a monitoring system to ensure compliance.
As this Bill currently is in draft form, more information will become available shortly allowing businesses to prepare themselves for compliance.