According to reports, the Australian government has launched a heavy blow to legislate against illegal cash transactions!

Introduced the "Strict New Deal in History"!

For transactions where the cash payment amount exceeds A$10000,

He was also fined $25200 and imprisoned for 2 years.

The proposed law may take effect as early as January 2020.
The goal will be to combat the "black market economy."

What is the black market economy?

According to the Australian Ministry of Finance website,

The "black market economy" involves thosePeople who operate entirely outside the tax and regulatory system.

"It includes a wide range of practices, including underreporting income, paying and accepting off-book cash wages, and benefit fraud."

If the new bill goes into effect,As long as Australians are involved in cash transactions that pay more than A$1,

Will be punished with up to 2 years in prison and a fine of $25200.

The introduction of this new bill shows the government's determination to combat tax evasion, but it has also attracted criticism from some people.
New bill criticized

It is reported that since the federal government first announced the bill in the 2018-19 budget, critics have publicly criticized this idea.

Some people believe that the bill will give banks more control.

Others believe that it belongs to Orwellianism. The term is usually used to refer to modern authoritarian regimes to control by strictly implementing political propaganda, surveillance, deliberately providing false information, denying facts, and manipulating past policies. society.

Hanson, the leader of the One Nation Party, even criticized the proposal on Facebook, comparing it to an abnormal weather event.

She said:"It's like a Category XNUMX hurricane near the coast, which may kill millions of people. You still want to know if it's right?
"For example, if you hold cash and buy a new car with cash, you may face a two-year prison sentence and a fine that exceeds the value of the new car."
Hanson also said that the government is using "attack black market economic activities" as an excuse to stimulate the Australian economy.
"I prefer to call it a social experiment, using your money to try to correct the market."
Hanson emphasized that the One Nation Party will not support this bill.
Paul Drum, General Manager of External Affairs of CPA Australia, worried,
In this system aimed at fighting crime,Innocent people will be treated unfairly.
"Linking all large cash transactions to criminal behavior is a step too far."

Economist John Adams claimed that the proposal was an attack on civil liberties and regretted the idea of ​​giving banks more control.
"Australians should have basic economic and civil rights to protect private wealth, without being affected by commercial banking. "

In response to these disputes, a spokesperson for the Ministry of Finance said,This restriction will still allow companies to conduct legal cash transactions.
It allows businesses and individuals to continue to use cash in most transactions. Businesses can still accept and pay cash worth less than A$1.
"This is why the cash payment limit (CPL) is set at 1 Australian dollars. This will not affect the legal transactions of the company, but will only reduce the black market economic behavior."

Chinese shops need to be extra careful

Looking back, the Cash Only brand is very common in many Australian Chinese restaurants and supermarkets.

The Chinese district is the hardest hit area for illegal cash transactions, and many Chinese business owners have also become the focus of investigation.
As early as 2014, ATO has sent40 people can speak Mandarin, Cantonese and ThaiInvestigators from Sydney visited 170 restaurants and cafes in Sydney, conducted 43 reviews, and recovered up to $820 million in taxes!
In April 2015, ATO visited more than 4 restaurants and cafes in the CBD of Adelaide.
In October 2015, ATO made 10 visits to the restaurant and cafe department in Box Hill, Victoria. Five businesses were not properly registered.
In March and April 2016, ATO made 3 visits to Gold Coast cafes, hair and beauty salons.
Between 2015 and 2016, ATO has monitored 127,000 transaction stores, conducted 15,000 audit and enforcement activities, andRecovered more than $2.08 million in taxes and fines!
In early 2017, the Australian Taxation Office convened internalPersons who speak Asian languagesVisit these shops, including Melbourne, Sydney, Gold Coast and Adelaide.

ATO originally hoped to help these businesses understand and fulfill their tax obligations, butIf they do not comply, they will be investigated.

I hope that businesses can abide by the law so as not to outweigh the gains.