Tainted practices and illegal money laundering are rampant in all governments across the world. Whether a developing country or a developed one. Australia in a bid to hamper this practice and fight black economy has proposed a new law. The law puts a limit on cash that can be used at a time for transactions, failing which the person holding more than the limit will face jail time. This is being called unfair and erroneous by many who oppose it from coming to effect.
The Morrison Government is proposing a law, that could lead to jail for Australian if they were found using more than 10,000 in cash for goods and services. Transactions equal to, or in excess of this amount would need to be made using the electronic payment system or by cheque. Though done with the intention to check black money flow in the economy and to deal with tax evasion and criminal activities, the law has not been received well.
CPA Australia said in a submission to the draft bill that while it seems like an honest effort to fight the sustenance of criminal practices, it may be not so well thought of protesting that “to link all large cash transactions to criminality is a step too far. The proposed offences can lead to an individual being convicted, fined and/or jailed for up to two years for merely using cash, regardless of the purpose or nature of the transaction,” CPA Australia’s Dr. Gary Pflugrath said.
He further added, “We believe the policy intent behind this bill would best be achieved by a mix of administrative penalties for breaches and incentives for business to move to electronic payment options.”
The law may face stringent opposition before it is passed from different corners.