The Government has released draft rules to support the Currency (Restrictions of the Use of Cash) Bill 2019 (the Bill) that was introduced in the Parliament on 19 September 2019. The Bill gives effect to an economy-wide cash payment limit to combat the black economy.
The Currency (Restrictions on the Use of Cash) Rules 2019 specifies the types of transactions that are exempt from the cash payment limit. The rules also prescribe how to work out the value in Australian currency of an amount of foreign currency or digital currency for the purposes of the cash payment limit.
The draft rules take into consideration the consultation on draft legislation for the cash payment limit that was held from 26 July 2019 to 12 August 2019. After the Bill has received Royal Assent, the rules will be tabled in the Parliament as soon as practicable.
The legislative package to give effect to the cash payment limit comprises of:
- The Currency (Restrictions on the Use of Cash) Bill 2019
- The Currency (Restrictions on the Use of Cash) Rules 2019