PO Box 525, Bentleigh, Victoria, 3204

When is cash not legal tender?

Do you have $100 note in your wallet? There are around 350 million $100 notes (affectionally called “Kermits”) in circulation, so each of us should have 14! If you answered no, then where is your share. If you answered yes, “Have you been to the Casino?” or am I suspecting you of doing something dodgy. Feeling guilty?

Even though we now tend to “tap and go”, last time a looked – cash was still legal tender. But maybe not for long.

From 1 January 2020, cash payments of more than $10,000 between business and individuals will be outlawed. The draft of the laws have just been released indicating maximum fines of $25,200 and/or two years imprisonment.

This move comes from recommendations from the Black Economy Taskforce, where these type of cash payments may be used for money laundering and financing terrorist activities. The Taskforce estimated that the black economy is costing the economy in excess of $50 million.

We need to wait until the laws have been enacted before we get into the specifics, so in the meantime enjoy using your legal tender, and start looking for that cheque book.