Large fines may be imposed and a possible two-year jail sentence if people use cash for purchases above $10,000. As these transactions will be illegal, you will not be able to claim GST or a tax deduction.
This is a result of a move by the ATO to stamp out tax evasion, money laundering and other crimes.
Cash transactions between private people are still allowed where the seller does not have an ABN, as are cash payments to financial institutions.
Inherently the law classifies crypto currency as cash, however the ATO won’t push it unless they believe tax evasion exists, but will review their position.
For more information call your local TaxAssist Accountant.
Written by Terry Murphy
Date published 11 Sep 2020 | Last updated 11 Sep 2020This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.
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