As Australia struggles to maintain its unprecedented 104-quarter-long streak of uninterrupted economic growth, lawmakers are intensifying the country’s “war on cash” – ostensibly part of a crackdown on “criminal gangs” that are smuggling drugs and/or people into the island nation and companies that are trying to cheat their taxes.
To wit, Australia’s government has introduced an economy-wide payment limit of $10,000 for transactions conducted in cash, which, according to News.au, will help (in the aussie slang) “keep dishonest tradies and businesses from rorting the system by taking cash in hand.”
From July 1, 2019, cash payments of more than $10,000 made to businesses for goods and services will be banned as the Turnbull Government seeks to crack down on the $50 billion “black economy.”
The law was purportedly inspired by instances of large purchases – yachts, sports cars and other luxury items – being made in cash and the tax not being reported.
Perhaps the most – um – striking element of the proposal is the introduction of “mobile strike teams” to catch businesses engaging in the act of conducting an illicit cash transaction.
Treasurer Scott Morrison said the Black Economy Standing Taskforce will be beefed up to detect people making sneaky cash transactions through a rigorous identification system and “mobile strike teams”.
A black economy hotline will also be set up to allow people to dob in anyone who may be cheating the system.
“Cash provides an easy, anonymous and largely untraceable mechanism for conducting black economy activity,” the response said.
“Cash payments make it easier to under-report income and avoid tax obligations. This allows businesses transacting in cash to undercut competitors and gain a competitive advantage.”
Meanwhile, Australia’s federal law enforcement are setting up a hotline for people to call in and “dob on their neighbors” who are violating the cash payments rule…
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