Australians could face up to two years in jail and be fined $25,000 for completing cash transactions in excess of $10,000, under a proposed new law.

The proposal to criminalise large cash transactions has been put forward in an attempt to crack down on the black economy and tax avoidance.

But the head of External Affairs at CPA Australia Paul Drum tells Ross Greenwood although the practice may be rare, people still use large amounts of cash to get a better deal.

“Mum and dad are buying a new car for son or daughter… and the car’s $11,000 or $10,000.

“Businesses are always looking at how can they can save money… cash transactions is one way to keep bank costs down. Just because it’s cash it doesn’t mean it’s an illegal activity.

“It would turn normal mums and dads, potentially, into criminals.”

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