AUSTRALIAN DRAFT BILL EXCLUDES DIGITAL CURRENCY FROM NEW CASH PAYMENT LIMIT

Last updated: June 20, 2025, 00:25 | Written by: Katie Haun

Australia is undergoing a significant shift in its financial landscape with the introduction of a new draft bill aimed at curbing large cash transactions. Australia s government has delivered supportive statements on cryptocurrency as it looks to exclude the sector from new restrictions on cash payments. In an explanatory memorandum issued late last week, the country s Treasury said it wished to ban cash payments for goods and services which exceeded 10,000 AUD ($6,900).The headline? In an explanatory memorandum issued late last week, the country s treasury said it wished to ban cash payments for goods and services which exceeded 10,000 AUD ($6,900). However, a numberThe Australian Draft Bill Excludes Digital Currency From New Cash Payment Limit.This move signals a fascinating development in the government's approach to digital assets and their role in the Australian economy.The proposed legislation seeks to limit cash payments for goods and services exceeding AUD 10,000 (approximately $6,900 USD), intending to combat illicit activities and encourage a transition towards a more digital-based financial system. Australian Draft Bill Excludes Digital Currency From New Cash Payment Limit New Australian draft bill continues war on cash but exempts crypto. Posted in News.However, a key aspect of this bill is the explicit exclusion of digital currencies from these restrictions, sparking considerable debate and excitement within the cryptocurrency community. How does the cash payment limit apply to payment plans? The cash payment limit will apply to the total price of a single supply of goods or services, regardless of whether the price is split into a series of payments over time. The total cash payments made towards the final price paid must not equal to or exceed $10,000. The remainder of theThis decision reflects a calculated balance between controlling the flow of physical cash and fostering innovation within the burgeoning digital currency space.

The Treasury's explanatory memorandum highlights a pivotal reason for this exclusion: a lack of substantial evidence suggesting that digital currencies are currently being widely used to facilitate black economy activities in Australia. Australian Draft Bill Excludes Digital Currency From New Cash Payment Limit In an explanatory memorandum issued late last week, the country s Treasury said it wished to ban cash payments for goods and services which exceeded 10,000 AUD ($6,900).This suggests a pragmatic approach, choosing not to stifle potential growth in the digital asset sector while focusing on areas where cash is more demonstrably linked to illegal activities.But what does this mean for the future of cryptocurrency in Australia? On July 26, the Federal Government released a draft version of the Currency (Restrictions on the Use of Cash) Bill 2025 (Cth) (the Draft Bill ) and accompanying draft Explanatory Material (the Draft EM ) for public comment and consultation, with submissions closing on .And how will this new cash payment limit impact everyday transactions and the broader economy? 2 7 Meaning of cash payment limit 3 For this Act, the cash payment limit is $10,000. 4 8 Value of cash foreign currency and digital currency 5 For the purposes of this Act, the value in Australian currency of an 6 amount of cash paid in foreign currency or digital currency is to be 7 worked out in accordance with the method prescribed, byLet's delve deeper into the details of this landmark legislation.

Understanding the New Cash Payment Limit

The core of this new legislation centers around the establishment of a cash payment limit of AUD 10,000. The Australian government has released draft legislation to implement an economy-wide cash payment limit of $10,000 from . Treasury officials have announced the laws will be encouraging the transition to a digital society .This means that any transaction for goods or services exceeding this amount cannot be settled using physical cash.The intention behind this measure is to increase transparency and reduce opportunities for tax evasion and other financial crimes.Let's break down the key aspects:

The Threshold: The $10,000 AUD limit applies to the total price of a single supply of goods and services.
Payment Splitting: The rules are clear; attempting to circumvent the limit by splitting a single payment into multiple smaller cash payments is also prohibited.The total cash payments made towards the final price paid must not equal to or exceed $10,000.
Enforcement: The bill creates new offenses for entities that make or accept payments that include a cash payment that totals $10,000 or more.

For example, imagine you're purchasing a new car for $30,000.Under this legislation, you could not pay more than $10,000 of the purchase price in cash.The remaining $20,000 would need to be settled through alternative methods such as bank transfer, credit card, or, notably, digital currency.

Why a Cash Payment Limit?

The government's rationale for implementing this cash payment limit is multifaceted:

Combating the Black Economy: Reducing the use of large cash transactions makes it more difficult for individuals and businesses to operate outside the formal financial system, making tax evasion harder.
Increasing Transparency: Digital transactions are inherently more traceable than cash, providing authorities with greater visibility into financial flows.
Modernizing the Financial System: Encouraging the use of digital payment methods aligns Australia with global trends towards a more cashless society.

The Crucial Exclusion: Digital Currencies

Now, let's turn to the most significant aspect of this bill: the exclusion of digital currencies. El gobierno australiano ha hecho declaraciones de apoyo sobre las criptomonedas al tratar de excluir al sector de las nuevas restricciones a los pagos en efectivo. En un memor ndum explicativo publicado a finales de la semana pasada, el Tesoro del pa s dijo que deseaba prohibir los pagos en efectivo por bienes y servicios que excedieran los AUD 10,000 (USD 6,900).The draft explicitly states that payments made in digital currency are exempt from the $10,000 cash payment limit.This decision carries significant implications for the future of cryptocurrency adoption in Australia.The government has expressed concerns that imposing the cash payment limit on crypto may stifle innovation in the digital currency space or discourage the use of crypto in the country.

The Treasury's memorandum provides a clear justification for this exclusion: ""At the same time, there is little current evidence that digital currency is presently being used in Australia to facilitate black economy activities.Given this, the Government has decided at the present time to effectively carve digital currency out from the cash payment limit.""

This exclusion means that individuals and businesses can freely transact in digital currencies, such as Bitcoin or Ethereum, without being subject to the $10,000 limit.This could potentially lead to increased adoption and usage of cryptocurrencies in Australia, as it removes a significant barrier to entry for larger transactions.

What Constitutes a ""Digital Currency""?

The definition of ""digital currency"" within the context of this bill is crucial. The Bill creates new offences for entities that make or accept payments that include a cash payment that totals $10,000 or more. This $10,000 threshold applies to the total price of a single supply of goods and services, including where that total is split into a series of payments.While the specific legal definition might be further clarified in subsequent regulations, it generally refers to:

Cryptocurrencies: Decentralized digital currencies like Bitcoin, Ethereum, Litecoin, etc.
Stablecoins: Cryptocurrencies designed to maintain a stable value, often pegged to a fiat currency like the US dollar.
Central Bank Digital Currencies (CBDCs): Should Australia eventually introduce a CBDC, it would likely also fall under this exclusion.

However, it's important to note that digital representations of fiat currency held in traditional bank accounts are *not* considered digital currencies in this context.A bank transfer, for instance, would still be subject to reporting requirements for large transactions, even though it's a digital form of payment.

Implications for the Cryptocurrency Market in Australia

The exclusion of digital currencies from the cash payment limit is undeniably a positive development for the Australian cryptocurrency market.Here are some potential implications:

Increased Adoption: The absence of transaction limits could encourage greater adoption of cryptocurrencies for everyday purchases, particularly for higher-value items.
Attracting Investment: Australia could become a more attractive destination for cryptocurrency businesses and investors, as the regulatory environment is perceived as more favorable.
Innovation and Growth: The digital currency sector could experience a surge in innovation, with new products and services being developed to cater to the Australian market.
Greater Scrutiny: As cryptocurrency adoption increases, it's likely that regulatory scrutiny will also intensify. Australian draft bill excludes digital currency from new cash payment limit Australia s government has delivered supportive statements on cryptocurrency as it looks to exclude the sector from new restrictions on cash payments.The government has already indicated that it will regularly assess the situation and may change its position in the future.

However, it's crucial to understand that this exclusion does *not* mean that cryptocurrencies are entirely unregulated in Australia.Existing anti-money laundering (AML) and counter-terrorism financing (CTF) laws still apply to digital currency exchanges and other relevant businesses.

Potential Challenges and Considerations

While the exclusion of digital currencies is generally seen as a positive step, there are potential challenges and considerations that need to be addressed:

Regulatory Uncertainty: The legal and regulatory landscape for cryptocurrencies is constantly evolving, and businesses need to stay informed of any changes.
Volatility: The price volatility of cryptocurrencies can be a significant deterrent for some users, making it difficult to use them for everyday transactions.
Security Risks: Cryptocurrency users need to be aware of the security risks associated with storing and transacting in digital currencies, such as hacking and theft.
Tax Implications: Cryptocurrency transactions are subject to capital gains tax in Australia, and users need to keep accurate records of their transactions.

The government's commitment to regularly assessing the situation and potentially changing its position is a reminder that the regulatory landscape could evolve.It is crucial for businesses and individuals involved in the cryptocurrency space to stay informed and adapt to any future changes.

Practical Examples of How the Bill Impacts Different Scenarios

To further illustrate the impact of this bill, let's consider a few practical examples:

Buying a House: If you're purchasing a property for $500,000, you could not pay more than $10,000 in cash.The remaining $490,000 would need to be settled through a bank transfer or, theoretically, using a cryptocurrency like Bitcoin (although this is still uncommon in practice).
Purchasing Luxury Goods: If you're buying a luxury watch for $15,000, you could pay the entire amount in Bitcoin or Ethereum without violating the cash payment limit.However, if you wanted to pay any portion of the amount in cash, that cash portion could not exceed $10,000.
Paying for Services: If you're hiring a contractor for a project costing $12,000, you could pay them the entire amount in a stablecoin like USDT without any restrictions. Australia s government is planning to roll out new legislation on Janu. The new regulations are intended to curb large cast transactions designed to skirt the law, but the new draft bill makes an exception for transactions made with digital currency. The news is generally great for cryptocurrency enthusiastsHowever, if you wanted to pay them in cash, you would be limited to $10,000, and the remaining $2,000 would need to be paid through another method.

These examples highlight the practical implications of the new legislation and how it could influence payment preferences in different situations.

Addressing Common Questions About the New Legislation

Here are some common questions related to the Australian Draft Bill and its implications:

Will this bill completely eliminate cash transactions in Australia?

No, this bill does not aim to eliminate cash transactions entirely.It simply places a limit on the amount of cash that can be used for a single transaction. While the draft Bill currently captures digital currencies by default, the Government intends to provide relief from application for digital currency. economy-wide cash payment limit ofSmaller transactions can still be conducted using cash.

Does this bill apply to all businesses?

Yes, this bill applies to all businesses operating in Australia, regardless of their size or industry.

What are the penalties for violating the cash payment limit?

The bill creates new offenses for entities that make or accept payments that include a cash payment that totals $10,000 or more. Australia s government has delivered supportive statements on cryptocurrency as it looks to exclude the sector from new restrictions on cash Latest Australian Draft Bill Excludes Digital Currency From New Cash Payment LimitThe specific penalties for violating the cash payment limit will likely be outlined in the final legislation and could include fines and other sanctions.

Will this bill impact the value of Bitcoin or other cryptocurrencies in Australia?

It's difficult to predict the precise impact on cryptocurrency values.However, the exclusion of digital currencies from the cash payment limit could potentially increase demand for cryptocurrencies in Australia, which could, in turn, have a positive impact on their value.

How will the government track cryptocurrency transactions?

While cryptocurrency transactions are generally pseudonymous, existing AML/CTF laws require digital currency exchanges to collect and verify customer information.This allows the government to track cryptocurrency transactions to some extent.

The Road Ahead: Future Developments and Regulatory Landscape

The Australian government has indicated that it will continue to monitor the use of digital currencies and may adjust its regulatory approach in the future.The key is to strike a balance between fostering innovation and preventing illicit activities.

Some potential future developments include:

Further Clarification of Regulations: The government may provide further clarification on the definition of ""digital currency"" and the specific requirements for businesses operating in the cryptocurrency space.
Introduction of a Central Bank Digital Currency (CBDC): Australia is exploring the possibility of introducing a CBDC, which could have a significant impact on the financial system.
Increased International Cooperation: As cryptocurrencies are global in nature, international cooperation on regulation and enforcement will be crucial.

It is essential for individuals and businesses involved in the cryptocurrency space to stay informed of these developments and adapt to any future changes in the regulatory landscape.

Conclusion: A Cautious Step Towards Embracing Digital Currencies

The Australian Draft Bill Excludes Digital Currency From New Cash Payment Limit is a significant step forward in Australia's approach to digital assets.By exempting digital currencies from the $10,000 cash payment limit, the government is signaling its intention to foster innovation and growth within the cryptocurrency sector.While this exclusion is a welcome development for the cryptocurrency community, it's important to remember that cryptocurrencies are not entirely unregulated in Australia, and existing AML/CTF laws still apply.The government's commitment to regularly assessing the situation and potentially changing its position highlights the dynamic nature of the regulatory landscape.

The key takeaways from this new legislation are:

Cash payments for transactions exceeding $10,000 AUD will be prohibited.
Digital currencies are excluded from this cash payment limit.
This exclusion could lead to increased adoption and innovation in the Australian cryptocurrency market.
Regulatory scrutiny of the cryptocurrency sector is likely to intensify.

Ultimately, this bill represents a cautious but potentially transformative step towards embracing digital currencies in Australia. Australian Draft Bill Excludes Digital Currency From New Cash Payment Limit via Cointelegraph Cryptocurrency CryptoBy balancing the need to combat financial crime with the desire to foster innovation, the government is setting the stage for a more digital and transparent financial future. The government of Australia has stood in support of digital currencies and would like to have the assets excluded from the new restrictions to be imposed on cash payments. According to a memorandum sent out by Australia s Treasury, there will be a ban on cash payments for good and services costing over 10,000 AUD ($6,900).Stay informed, adapt to changes, and embrace the possibilities that this new landscape presents.