CASH TRANSACTIONS – AUSTRALIA

Where cash buyers are splurging billions

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Original article by Nila Sweeney
The Australian Financial Review – Page: 27 & 28 : 19-Nov-24

Data from electronic conveyancing firm PEXA Group shows that more home buyers in Australia are opting to pay with cash rather than take out a mortgage. The firm’s analysis of settled residential property transactions during 2023-24 shows that $138bn worth of sales were made using cash across NSW, Victoria and Queenland; this represents a year-on-year increase of 14 per cent. Some 114,000 properties were settled with cash, an increase of 3.9 per cent. PEXA’s chief economist Julie Toth says cash buyers could help to sustain house prices, noting that interest rates have less impact on them.

CORPORATES
PEXA GROUP LIMITED – ASX PXA

MPs fight to force shops to take cash

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Original article by Shane Wright
The Age – Page: Online : 4-Jun-24

Cash is now used in just 13 per cent of all transactions in which money changes hands, compared with about 70 per cent in 2007. The pandemic accelerated Australia’s shift to a cashless society, but independent MP Andrew Gee has introduced a private member’s bill that would impose a $25,000 fine on businesses that refuse to accept cash payments of less than $10,000; individuals would be fined up to $5,000. Gee’s bill has the support of fellow independents such as Bob Katter and Dai Le; however, federal parliament has passed only 30 private member’s bills since Federation in 1901.

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Government flags heavy-handed crackdown on black economy

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Original article by Mike Bruce
The New Daily – Page: Online : 21-Aug-19

Gary Pflugrath of CPA Australia says the federal government should reconsider proposed legislation to restrict cash payments between businesses and individuals to no more than $10,000. It was one of the recommendations of the government’s Black Economy Taskforce, but Pflugrath contends that there are sufficient "checks and balances" to counter criminal activity. Kurt Wallace from the Institute of Public Affairs says restricting cash payments would have little impact on the cash economy, while reducing the freedoms of ordinary Australians. Individuals could face big fines and imprisonment for breaching the proposed laws.

CORPORATES
CPA AUSTRALIA, INSTITUTE OF PUBLIC AFFAIRS LIMITED, H&R BLOCK LIMITED, ONE NATION PARTY, UNIVERSITY OF MELBOURNE

Transacting $10,000 or more in cash could make you a criminal under proposed law

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Original article by Nassim Khadem
abc.net au – Page: Online : 20-Aug-19

The 2018-19 federal Budget included a proposal that would restrict cash payments to businesses to no more than $10,000. The measure was recommended by the federal government’s Black Economy Taskforce; those who infringe the proposed measure if it is legislated could be fined up to $25,000 or jailed for two years. One Nation has indicated that it will vote against legislation, while the Australian Chamber of Commerce & Industry is among a number of organisations that oppose the measure.

CORPORATES
ONE NATION LIMITED, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY

Calls to further limit cash payments

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Original article by Tom McIlroy
The Australian Financial Review – Page: 5 : 31-Jul-19

Business owners who accept large cash payments would face a fine of $25,000 and jail terms of up to two years as part of the federal government’s crackdown on the cash economy. Cash payments will be restricted to $10,000 under the reforms announced in the 2018 Budget. However, KPMG tax partner Grant Wardell-Johnson says the government should consider lowering the threshold over time, suggesting that a limit of $5,000 or even just $2,000 may be appropriate. Tony Greco of the Institute of Public Accountants agrees that reducing the threshold may be justified.

CORPORATES
KPMG AUDIT PLC, INSTITUTE OF PUBLIC ACCOUNTANTS LIMITED, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, RESERVE BANK OF AUSTRALIA

ATO plugs up cash-in-hand payments leak

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Original article by Tom McIlroy
The Australian Financial Review – Page: 8 : 19-Jun-19

The Australian Taxation Office has signalled that it will crack down on companies that make cash-in-hand payments to their employees. Assistant commissioner Peter Holt says that from 1 July, payments to workers will only be tax deductible if they comply with pay-as-you-go withholding and reporting requirements. The crackdown is in response to recommendations made by the federal government’s Black Economy Taskforce, which has estimated that the cash economy is worth up to $50bn a year.

CORPORATES
AUSTRALIAN TAXATION OFFICE

Cash economy investigation reaps $2.7b from builders

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Original article by Tom McIlroy
The Australian Financial Review – Page: 11 : 13-Feb-19

The Australian Taxation Office has used data matching technology to recover some $2.7bn worth of tax revenue associated with payments to contractors and subcontractors in the construction industry. The crackdown on the cash economy has targeted contractors who fail to declare all income or use false Australian Business Numbers to avoid tax liabilities. The crackdown has also targeted businesses such as cleaning and courier firms.

CORPORATES
AUSTRALIAN TAXATION OFFICE

Green light for black economy taskforce

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Original article by Duncan Hughes
The Australian Financial Review – Page: 21 : 30-Jan-19

The federal government’s Black Economy Taskforce made 80 recommendations in its final report, which was released in October. The government has accepted 30 of these recommendations, while it has agreed in principle to adopt 21 recommendations. Michael Andrew, who chaired the taskforce, says government departments and agencies have commenced the process of implementing the recommendations. The cash economy is estimated to cost about $50 billion a year.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN TAXATION OFFICE, AUSTRALIA. DEPT OF JOBS AND SMALL BUSINESS, AUSTRALIA. DEPT OF HOME AFFAIRS, KPMG AUSTRALIA PTY LTD

KPMG urges refund plan for black economy fines

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Original article by Tom McIlroy
The Australian Financial Review – Page: 5 : 3-Jan-19

KPMG’s submission to a Treasury review has proposed that individuals who have previously engaged in black economy activity could have part of their fine refunded if they have a proven track record of complying with tax laws. The firm suggested that individuals would be more likely to continue to comply with tax laws under such a system, and they could qualify for a refund after three years with a clean slate. The black economy is estimated to be worth up to $50bn a year.

CORPORATES
KPMG AUSTRALIA PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN TAXATION OFFICE

Boosted powers, travel ban plan to cut avoidance

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Original article by Emma Koehn
The Age – Page: 25 : 27-Nov-18

A recent Treasury discussion paper flagged measures aimed at those who avoid tax as part of a crackdown on the black economy. These include imposing overseas travel bans on persons with outstanding tax obligations, as well as giving the Australian Taxation Office the power to access telecommunications data and third-party information such as bank accounts. Submissions to Treasury concerning the discussion paper can be made until 21 December.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN TAXATION OFFICE, BDO AUSTRALIA LIMITED