Cash payment limit will help stamp out black economy
5 July 2018
Australia’s banks have today backed the Federal Government’s move to limit cash payments to $10,000 to tackle the ‘black economy’, however have highlighted the need for any reform to be implemented carefully.
This year’s budget included a new limit on cash payments to $10,000 to clamp down on the ‘black economy’, one of the recommendations of the black economy taskforce appointed by Minister O'Dwyer.
In its submission released today the banking industry outlines its broad support for the change, however have highlighted areas of concern.
Key points of interest to the banking industry are:
- The need for a realistic implementation timeframe to help customers and businesses who are heavily reliant on cash payments so they can adapt to the changing environment
- Ensuring the cash limit does not apply to transfers between financial institutions which are critical to ensuring cash is distributed quickly and easily throughout the economy
- The change applies to payments only and not withdrawals of over $10,000
CEO of the Australian Banking Association Anna Bligh said that the industry was fully supportive of the Federal Government's efforts to tackle the ‘black economy’.
“Limiting cash payments to $10,000 is an important change to make sure business and individuals pay their fair share of tax and operate within the law,” Ms Bligh said.
“Banks are on the ground regularly talking with local business, so they know the importance of getting this policy right.
“It’s important that local shop owners, manufacturers and others are given enough time to adapt to this policy which for many of them will be a big change to the way they do business.
“It’s also important that banks can continue to serve the economy by quickly distributing cash where needed therefore it’s important an exception is clearly made when it comes to this policy,” she said.
A copy of the submission is available here.
Contact: Rory Grant 0475 741 007