In the 2018-19 Budget, the Government responded to the Black Economy Taskforce’s Final Report. This included an announcement of an economy-wide cash payment limit of $10,000 for payments to businesses for goods and services, to apply from 1 July 2019. Transactions in excess of this amount would need to be made using the electronic payment system or by cheque. Subsequent to this, the Government decided to revise the start date from 1 July 2018 to 1 January 2020 at the 2018-19 Mid-Year Economic and Fiscal Outlook.
In implementing this measure, the Government is seeking to strike the right balance between cracking down on black economy participants using large cash transactions to avoid their tax obligations, and ensuring that businesses doing the right thing are not unduly burdened by increased red tape.
The consultation paper sought the views of stakeholders to identify issues for consideration in implementing this measure, including views on reporting obligations, integrity measures and whether any exemptions should apply.