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This is a Bill, not an Act. For current law, see the Acts databases.
2019
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Currency (Restrictions on the Use of
Cash) Bill 2019
No. , 2019
(Treasury)
A Bill for an Act to restrict the use of cash in
transactions, and for related purposes
No. , 2019
Currency (Restrictions on the Use of Cash) Bill 2019
i
Contents
Part 1--Preliminary
1
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 2
3
Objects ............................................................................................... 2
4
Simplified outline of this Act ............................................................ 3
5
This Act binds the Crown .................................................................. 3
6
Extension to external Territories ....................................................... 3
7
Definitions ......................................................................................... 3
8
Meaning of cash payment limit .......................................................... 4
9
Value of cash--foreign currency and digital currency ...................... 4
10
Periodic supplies ................................................................................ 4
Part 2--Offences
5
11
Simplified outline of this Part ............................................................ 5
12
Offence--cash payments equalling or exceeding the cash
payment limit (strict liability) ............................................................ 5
13
Offence--cash payments equalling or exceeding cash
payment limit ..................................................................................... 6
Part 3--Miscellaneous
9
14
Simplified outline of this Part ............................................................ 9
15
Treatment of entities other than individuals, bodies corporate
and bodies politic ............................................................................... 9
16
Vicarious criminal liability .............................................................. 10
17
Recovery of fines ............................................................................. 11
18
Saving of other laws ........................................................................ 11
19
Additional constitutional operation ................................................. 11
20
Rules ................................................................................................ 12
No. , 2019
Currency (Restrictions on the Use of Cash) Bill 2019
1
A Bill for an Act to restrict the use of cash in
1
transactions, and for related purposes
2
The Parliament of Australia enacts:
3
Part 1--Preliminary
4
5
1 Short title
6
This Act is the Currency (Restrictions on the Use of Cash) Act
7
2019.
8
Part 1 Preliminary
Section 2
2
Currency (Restrictions on the Use of Cash) Bill 2019
No. , 2019
2 Commencement
1
(1) Each provision of this Act specified in column 1 of the table
2
commences, or is taken to have commenced, in accordance with
3
column 2 of the table. Any other statement in column 2 has effect
4
according to its terms.
5
6
Commencement information
Column 1
Column 2
Column 3
Provisions
Commencement
Date/Details
1. The whole of
this Act
1 January 2020.
1 January 2020
Note:
This table relates only to the provisions of this Act as originally
7
enacted. It will not be amended to deal with any later amendments of
8
this Act.
9
(2) Any information in column 3 of the table is not part of this Act.
10
Information may be inserted in this column, or information in it
11
may be edited, in any published version of this Act.
12
3 Objects
13
(1) The principal object of this Act is to protect the integrity of the
14
Commonwealth taxation system, by preventing the use of cash in
15
order to avoid scrutiny by the Commissioner of Taxation seeking
16
to enforce the taxation law. A secondary object of this Act is, by
17
adopting the same means, similarly to protect the integrity of other
18
laws.
19
Note:
Examples of activities that can be facilitated by large cash payments
20
include tax evasion, money laundering, fraud, bribery, and obtaining
21
financial advantage by deception.
22
(2) These objects are to be achieved by making it an offence for an
23
entity to make or accept cash payments that are equal to or that
24
exceed the cash payment limit, unless the payment is expressly
25
exempted under this Act. Entities will need to use other payment
26
methods for payments that equal or exceed the cash payment limit.
27
Preliminary Part 1
Section 4
No. , 2019
Currency (Restrictions on the Use of Cash) Bill 2019
3
4 Simplified outline of this Act
1
This Act places restrictions on the use of cash or cash-like products
2
within the Australian economy. The Act imposes criminal offences
3
if an entity makes or accepts cash payments in circumstances that
4
breach the restrictions. The Act also sets out rules for what happens
5
when an entity that is not a legal person commits the offences.
6
5 This Act binds the Crown
7
(1) This Act binds the Crown in each of its capacities.
8
(2) This Act does not make the Crown liable to be prosecuted for an
9
offence.
10
6 Extension to external Territories
11
This Act extends to every external Territory.
12
7 Definitions
13
In this Act:
14
cash means either or both of the following:
15
(a) digital currency;
16
(b) physical currency.
17
cash payment limit: see section 8.
18
digital currency has the meaning given by the Anti-Money
19
Laundering and Counter-Terrorism Financing Act 2006.
20
entity has the meaning given by the Income Tax Assessment Act
21
1997.
22
Note:
Subsection 960-100(1) of the Income Tax Assessment Act 1997
23
provides that entity means any of the following:
24
(a) an individual;
25
(b) a body corporate;
26
(c) a body politic;
27
(d) a partnership;
28
Part 1 Preliminary
Section 8
4
Currency (Restrictions on the Use of Cash) Bill 2019
No. , 2019
(e) any other unincorporated association or body of persons;
1
(f) a trust;
2
(g) a superannuation fund;
3
(h) an approved deposit fund.
4
Some of these terms are further defined in the Income Tax Assessment
5
Act 1997.
6
physical currency has the meaning given by the Anti-Money
7
Laundering and Counter-Terrorism Financing Act 2006.
8
rules means the rules made under section 20.
9
supply has the meaning given by section 9-10 of the A New Tax
10
System (Goods and Services Tax) Act 1999.
11
value, in relation to cash, has a meaning affected by section 9.
12
8 Meaning of cash payment limit
13
For this Act, the cash payment limit is $10,000.
14
9 Value of cash--foreign currency and digital currency
15
For the purposes of this Act, the value in Australian currency of an
16
amount of cash paid in foreign currency or digital currency is to be
17
worked out in accordance with the method prescribed by the rules.
18
10 Periodic supplies
19
(1) If a supply is made for a period and payment for that supply is to
20
be made on a periodic basis, each periodic component of the
21
supply is, for the purposes of this Act, a separate supply.
22
(2) A payment is part of a series of payments for a periodic component
23
of a supply if it is, to any extent, a payment for that component.
24
Offences Part 2
Section 11
No. , 2019
Currency (Restrictions on the Use of Cash) Bill 2019
5
Part 2--Offences
1
2
11 Simplified outline of this Part
3
This Part creates offences for making or accepting certain cash
4
payments.
5
12 Offence--cash payments equalling or exceeding the cash
6
payment limit (strict liability)
7
Single payment that equals or exceeds cash payment limit
8
(1) An entity commits an offence if:
9
(a) the entity:
10
(i) makes a payment to another entity; or
11
(ii) accepts a payment from another entity; and
12
(b) the payment is or includes an amount of cash; and
13
(c) the value of the cash equals or exceeds the cash payment
14
limit.
15
Penalty: 60 penalty units.
16
(2) Strict liability applies to paragraphs (1)(b) and (c).
17
Note:
For strict liability, see section 6.1 of the Criminal Code.
18
Series of payments that equals or exceeds cash payment limit
19
(3) An entity commits an offence if:
20
(a) the entity:
21
(i) makes a payment to another entity; or
22
(ii) accepts a payment from another entity; and
23
(b) the payment is part of a series of payments that are made for
24
a supply or as a gift; and
25
(c) the payment is or includes an amount of cash; and
26
Part 2 Offences
Section 13
6
Currency (Restrictions on the Use of Cash) Bill 2019
No. , 2019
(d) as a result of the payment, the total value of all amounts of
1
cash included in the payments in the series equals or exceeds
2
the cash payment limit.
3
Penalty: 60 penalty units.
4
(4) Strict liability applies to paragraphs (3)(c) and (d).
5
Note:
For strict liability, see section 6.1 of the Criminal Code.
6
Exception--kinds of payments to which this section does not apply
7
(5) Subsections (1) and (3) do not apply to:
8
(a) the making of a payment of a kind specified by the rules; or
9
(b) the acceptance of a payment of a kind specified by the rules;
10
or
11
(c) the making of a payment in circumstances specified by the
12
rules; or
13
(d) the acceptance of a payment in circumstances specified by
14
the rules.
15
Note 1:
A defendant bears an evidential burden in relation to the matters in
16
subsection (5): see subsection 13.3(3) of the Criminal Code.
17
Note 2:
The Minister may specify different matters for the purposes of this
18
section and section 13.
19
Jurisdiction
20
(6) Section 15.2 (extended geographical jurisdiction--category B) of
21
the Criminal Code applies to an offence against subsection (1) or
22
(3) of this section if the payment or series of payments is for a
23
supply and the supply occurs wholly or partly in Australia.
24
Note:
If the supply does not occur wholly or partly in Australia, section 14.1
25
of the Criminal Code (standard geographical jurisdiction) applies to
26
the offence.
27
13 Offence--cash payments equalling or exceeding cash payment
28
limit
29
Single payment that equals or exceeds cash payment limit
30
(1) An entity commits an offence if:
31
Offences Part 2
Section 13
No. , 2019
Currency (Restrictions on the Use of Cash) Bill 2019
7
(a) the entity:
1
(i) makes a payment to another entity; or
2
(ii) accepts a payment from another entity; and
3
(b) the payment is or includes an amount of cash; and
4
(c) the value of the cash equals or exceeds the cash payment
5
limit.
6
Penalty: Imprisonment for 2 years or 120 penalty units, or both.
7
Series of payments that equals or exceeds cash payment limit
8
(2) An entity commits an offence if:
9
(a) the entity:
10
(i) makes a payment to another entity; or
11
(ii) accepts a payment from another entity; and
12
(b) the payment is part of a series of payments that are made for
13
a supply or as a gift; and
14
(c) the payment is or includes an amount of cash; and
15
(d) as a result of the payment, the total value of all amounts of
16
cash included in the payments in the series equals or exceeds
17
the cash payment limit.
18
Penalty: Imprisonment for 2 years or 120 penalty units, or both.
19
Exception--kinds of payments to which this section does not apply
20
(3) Subsections (1) and (2) do not apply to:
21
(a) the making of a payment of a kind specified by the rules; or
22
(b) the acceptance of a payment of a kind specified by the rules;
23
or
24
(c) the making of a payment in circumstances specified by the
25
rules; or
26
(d) the acceptance of a payment in circumstances specified by
27
the rules.
28
Note 1:
A defendant bears an evidential burden in relation to the matters in
29
subsection (3): see subsection 13.3(3) of the Criminal Code.
30
Note 2:
The Minister may specify different matters for the purposes of
31
section 12 and this section.
32
Part 2 Offences
Section 13
8
Currency (Restrictions on the Use of Cash) Bill 2019
No. , 2019
Jurisdiction
1
(4) Section 15.2 (extended geographical jurisdiction--category B) of
2
the Criminal Code applies to an offence against subsection (1) or
3
(2) of this section if the payment or series of payments is for a
4
supply and the supply occurs wholly or partly in Australia.
5
Note:
If the supply does not occur wholly or partly in Australia, section 14.1
6
of the Criminal Code (standard geographical jurisdiction) applies to
7
the offence.
8
Miscellaneous Part 3
Section 14
No. , 2019
Currency (Restrictions on the Use of Cash) Bill 2019
9
Part 3--Miscellaneous
1
2
14 Simplified outline of this Part
3
This Part sets out rules for how the offences in this Act apply when
4
the entity that commits the offence is not a legal person. This Part
5
also deals with miscellaneous matters, such as rules and the saving
6
of other laws.
7
15 Treatment of entities other than individuals, bodies corporate
8
and bodies politic
9
(1) Division 12 of the Criminal Code applies to offences against this
10
Act committed by an entity that is not a person as if references in
11
that Division to a body corporate were instead references to an
12
entity.
13
(2) For the purposes of the application of Division 12 of the Criminal
14
Code under subsection (1), an entity (the first entity) is taken to be
15
an agent, employee or officer of another entity (the second entity),
16
and is taken to be acting within the actual or apparent scope of
17
employment by the second entity or within the actual or apparent
18
authority of the second entity, if:
19
(a) the first entity is acting on behalf of the second entity; or
20
(b) both of the following apply:
21
(i) the first entity has duties, powers or responsibilities, or
22
carries on activities, in relation to the second entity that
23
are similar to the duties, powers, responsibilities or
24
activities of an agent, employee or officer;
25
(ii) if the second entity were a body corporate and the first
26
entity were an individual or a body corporate, a
27
reasonable person would consider that the first entity
28
was an agent, employee or officer of the second entity
29
acting within the actual or apparent scope of
30
employment by the second entity or within the actual or
31
apparent authority of the second entity.
32
Part 3 Miscellaneous
Section 16
10
Currency (Restrictions on the Use of Cash) Bill 2019
No. , 2019
16 Vicarious criminal liability
1
(1) Subject to subsection (2), an offence against this Act that would
2
otherwise be committed by an entity listed in column 1 of the
3
following table, including by reason of this subsection, is taken to
4
have been committed by the entity, or each entity, listed in column
5
2.
6
7
Vicarious criminal liability
Item
Column 1
Column 2
1
a partnership
each partner
2
an unincorporated association
or body of persons other than a
partnership
each member of the association's or
body's committee of management
3
a trust
(a) if the trust has a single trustee--the
trustee; and
(b) if the trust has 2 or more trustees--
each trustee
4
a superannuation fund
(a) if the fund has a single trustee--the
trustee; and
(b) if the fund has 2 or more trustees--
each trustee; and
(c) if the fund does not have a trustee--the
entity or entities that manage the fund
Defence to vicarious criminal liability
8
(2) An entity does not commit an offence because of subsection (1) if
9
the entity:
10
(a) did not aid, abet, counsel or procure the relevant act or
11
omission; and
12
(b) was not in any way knowingly concerned in, or party to, the
13
relevant act or omission (whether directly or indirectly and
14
whether by any act or omission of the entity).
15
Note:
A defendant bears an evidential burden in relation to the matters in
16
subsection (2): see subsection 13.3(3) of the Criminal Code.
17
Miscellaneous Part 3
Section 17
No. , 2019
Currency (Restrictions on the Use of Cash) Bill 2019
11
17 Recovery of fines
1
(1) This section applies in relation to a person who has been convicted
2
of an offence under this Act as a result of the operation of
3
section 16.
4
(2) A fine for the offence may be recovered from the assets of the
5
relevant entity referred to in column 1 of the table to
6
subsection 16(1).
7
Note:
See section 15A of the Crimes Act 1914 for the enforcement of fines.
8
(3) Subject to subsection (4), before imposing a fine on a person for an
9
offence under this Act that can be recovered from the assets of an
10
entity mentioned in column 1 of the table in subsection 16(1), a
11
court must take into account the financial circumstances of the
12
entity, including its assets, in addition to any other matters that the
13
court is required or permitted to take into account.
14
(4) Nothing in subsection (3) prevents a court from imposing a fine on
15
a person because the financial circumstances of the entity cannot
16
be ascertained by the court.
17
(5) Subsection (3) does not affect subsection 16C(1) of the Crimes Act
18
1914.
19
18 Saving of other laws
20
This Act is not intended to exclude or limit the operation of any
21
other law of the Commonwealth or any law of a State or Territory.
22
19 Additional constitutional operation
23
In addition to its effect apart from this section, this Act has the
24
effect it would have if a reference to a payment were expressly
25
confined to a payment that:
26
(a) is or includes an amount of cash that is currency, coinage or
27
legal tender for the purposes of section 51(xii) of the
28
Constitution; or
29
Part 3 Miscellaneous
Section 20
12
Currency (Restrictions on the Use of Cash) Bill 2019
No. , 2019
(b) is or includes an amount of cash that is digital currency
1
created or used by means of a service to which section 51(v)
2
of the Constitution refers; or
3
(c) is made or accepted by means of a service to which
4
section 51(v) of the Constitution refers.
5
20 Rules
6
(1) The Minister may, by legislative instrument, make rules
7
prescribing matters:
8
(a) required or permitted by this Act to be prescribed by the
9
rules; or
10
(b) necessary or convenient to be prescribed for carrying out or
11
giving effect to this Act.
12
(2) To avoid doubt, the rules may not do the following:
13
(a) create an offence or civil penalty;
14
(b) provide powers of:
15
(i) arrest or detention; or
16
(ii) entry, search or seizure;
17
(c) impose a tax;
18
(d) set an amount to be appropriated from the Consolidated
19
Revenue Fund under an appropriation in this Act;
20
(e) directly amend the text of this Act.
21