Banning the cash purchases over $10,000 AU from June 2019, Australia is eventually moving towards the digital society.
The Liberty Party government of Australia recently announced that purchasing goods for over $10,000 AU ($7,500) with cash will soon become illegal. This development aims at cracking down on the tax evasion and encouraging the transition to a digital economy, according to the government.
The ban will start on July 1, 2019. The government will allocate about $300 million for the Black Economy Standing Taskforce, in order to enforce this directive, which goal is to bring in approximately $3 billion over the next four years in the new tax revenue.
Until now, about 37 percent of commercial transactions are realized with cash in the country, while the corresponding percentage in Sweden account for only 15 percent and 32 percent in the US.
As per the government document:
“The Government will introduce a limit of $10,000 for cash payments made to businesses for goods and services from 1 July 2019. As part of the implementation process, the government will consult on the detail of this measure.”
And the document goes on:
“Currently, large undocumented cash payments can be used to avoid tax or to launder money from criminal activity. This measure will require transactions over a threshold to be made through an electronic payment system or cheque.”
However, the exemption will involve “transactions with financial institutions or consumer to consumer non-business transactions.”
This move is doubtlessly special news for cryptocurrency market as it will be lead to great cryptocurrency adoption.
Nevertheless, this directive may be excessively disturbing for a large part of small businesses, particularly those which deal majorly in cash. A business owner said:
“It’s going to screw me—95 percent of my business is cash collections.”
As Treasurer Scott Morison in his speech said, another affected part of the society by this move will be the criminals.
“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. It’s not clever. It’s not OK. It’s a crime.”
This move is sure to lead to the massive adoption of advanced coins shortly.