A bill to limit the use of cash was discharged from the Senate notice paper last week, effectively killing the controversial legislation.
The Currency (Restrictions on the Use of Cash) Bill 2019 would have banned cash transactions of A$10,000 or more. The proposal was in response to a recommendation of the Black Economy Taskforce in 2017, which said the government should take action to tackle tax evasion and other criminal activities by limiting the use of cash.
The explanatory memorandum accompanying the bill said this measure “ensures that entities cannot make large payments in cash so as to avoid creating records of the payment and facilitating their participation in the black economy and undertaking relate illicit activities”.
There were plenty of objections to the bill. The Australian Chamber of Commerce and Industry said that cash was not the cause of black economy activity. It also said the government should not be undermining the value of cash.
CPA Australia said the penalties were excessive. Penalties include fines of up to $25,200 and jail terms of up to two years. It said there was no strong evidence to justify an “extraordinary penalty” for the use of legal tender.
It also said there were already sufficient checks and balances in the system to deal with criminal activity.
Others argued that it was a breach of civil liberty and an invasion of privacy. And some suggested that the use of cash was being restricted as a way of exerting control over people’s use of their money in a financial crisis, such as the GFC.
The bill was introduced into the House of Representatives in September last year and then moved to the Senate in November, where it was referred to the Senate Economics Legislation Committee.
One Nation senators were vocal in their opposition.
The Minister for Housing and Assistant Treasurer Michael Sukkar said in a statement: “The COVID-19 pandemic has had a significant impact on small business and the broader economy. As we progress through to the recovery stage, we recognise now is not the time to impose an additional burden on small business.”