A federal government crackdown on the black economy includes a $10,000 cap on cash payments in an effort to tackle tax evasion and money laundering.
From July 1, 2019, payments of $10,000 or more for goods or services will have to be made with a cheque or through an electronic payment system.
“This will be bad news for criminal gangs, terrorists and those who are just trying to cheat on their tax or get a discount for letting someone else cheat on their tax,” Treasurer Scott Morrison said.
The government’s Black Economy Taskforce has also identified contractors in the trucking, security and computer system design industries as the most likely to dodge their tax obligations, and businesses will be required to report their payments to such contractors from July 2019.
The reporting system is already used in the building and construction industry, and from July 2018 will apply to the cleaning and courier industries.
The federal government is also providing $319 million to the Australian Taxation Office over the next four years for it to bring in new strategies to fight the black economy, including increased audits and a hotline for the public to report cases illegal activity.