Transfer over $10,000 to become illegal?

Discussion in 'Living Room' started by Lizzie, 1st Aug, 2019.

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  1. lmac

    lmac Active Member

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    Paving the way for negative 3-4% cash rates. Yikes? o_O
     
  2. PandS

    PandS Well-Known Member

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    Seem strange it more like cold hard cash transaction rather than banks transfer
    How People suppose to pay for billions of dollars of shares change hand each day?
     
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  3. Guest

    Guest Guest

    I was under the impression this is only for transactions to and from a business (for goods and services)?
    Currency (Restrictions on the Use of Cash) Bill 2019 | Treasury.gov.au
     
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  4. kierank

    kierank Well-Known Member

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    How will my SMSF pay me my weekly pension?
     
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  5. shorty

    shorty Well-Known Member

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    It obviously won't apply to electronic funds transfers in normal currency, otherwise the entire economy would collapse in minutes.

    It's just about tracking, revenue collection and anti money laundering. Won't work for money laundering because they are normally a few steps ahead of the govt, or just go to Crown. :D
     
  6. Lizzie

    Lizzie Well-Known Member

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    Last edited by a moderator: 10th Oct, 2021
  7. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    There is no indication here on whether it applies to business or not.
     
  8. Guest

    Guest Guest

    https://www.treasury.gov.au/sites/d...of_how_the_cash_payment_limit_will_work_0.pdf
     
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  9. Lizzie

    Lizzie Well-Known Member

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    Sorry - I thought from your comment that you were meaning the proposal was only relevant "to" payments made from/to businesses:

    "I was under the impression this is only for transactions to and from a business (for goods and services)?"
     
  10. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    You quoted a definition, but there is nothing relevant in it. I think you may have been conflating 'business' with 'entity'.

    You might also be confusing Joseph's comments with mine?
     
  11. Marg4000

    Marg4000 Well-Known Member

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    Definition says it is referring to physical cash or digital currency.

    Seems not to apply to bank transfers from one account to another.
    Marg
     
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  12. Barny

    Barny Well-Known Member

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    So bye bye to bitcoin
     
  13. Danieljk101

    Danieljk101 Well-Known Member

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    Bitcoin / crypto is exempt. The last thing they will ever do is recognise bitcoin as a legal currency.
     
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  14. Danieljk101

    Danieljk101 Well-Known Member

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    Wrong, you mean hello hello bitcoin.

    Bitcoin is exempt, bitcoin is treated the same as buying / selling shares. If they recognise bitcoin as legal currency they loose big time.
     
  15. Barny

    Barny Well-Known Member

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    And what if you use bitcoin to purchase other goods?
     
  16. Lizzie

    Lizzie Well-Known Member

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    Re reading. Marg might be right although it doesn't specify bank transfrs are exempt .... but does state that this is an attempt to take physical cash, and digital cash, out of the economy

    Okay. Might have been a scare in a bucket
     
    Last edited: 1st Aug, 2019
  17. MWI

    MWI Well-Known Member

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    Not only, we were told by Sotheby's staff any jewellery or art if bought with $10K or more cash will need to be declared by them to anti laundering....
    So yes, business transactions over $10K are illegal to me made in cash, transfers fine but other purchases of goods or services will need to be declared by the receiving party (or may be prohibited to accept if business).
     
    Last edited by a moderator: 10th Oct, 2021
  18. Guest

    Guest Guest

    I don't really understand where all the confusion stems from in this thread.

    The bill is designed to stop 'under the table' transactions conducted through businesses.

    There will be exemptions for consumer to consumer transactions (except for real estate transactions).

    This will not impact bank to bank transactions with Australian currency, this is the sort of transaction they are trying to encourage (to reduce tax avoidance/fraud).

    Bitcoin is not exempt, nor any other cryptocurrency.

    A digital currency for the purpose of this bill is a digital representation of value which is not issued by a government body (e.g. crypto).

    So if you are using physical currency or crypto to purchase goods or services from a business (with value >A$10,000), then this will impact you (or if you are a business accepting this from your customers).
     
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  19. MWI

    MWI Well-Known Member

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    Yes agree. But still the limit introduced one day can be changed say $10K to $5K to $1K? who knows?
     
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  20. Guest

    Guest Guest

    Limits could be reduced. Exemptions can be removed. I think there are valid reasons to be concerned about how it might be changed in the future... but I am not sure that I have any concerns with the existing draft. Are there any legitimate businesses which would be adversely impacted by the limit?