The implementation of the Currency (Restrictions on the Use of Cash) Bill 2019, backed by the Senate Economics Legislation Committee at the end of last month, could see offenders face two years jail time and fines of up to $25,000 for cash transactions exceeding $10,000.
The proposed law that passed through the Lower House in October was initially expected to take effect on 1 January 2020 but has been met with substantial pushback.
Highlights
- A Senate inquiry has waved through a bill outlawing cash transactions over $10,000.
- Among submissions raising potential issues, one came from the funeral sector warning it could disadvantage migrants of certain religious group, especially those pertaining to the Christian Orthodox faith.
- A Greek Australian funeral director says the elderly are most at risk of being adversely impacted by the legislation
How does the law affect funeral parlours and migrants, especially the elderly and of Christian Orthodox faith?
The committee’s recommendations came after the Senate inquiry on the proposed bill received 2,659 submissions by interested stakeholders, with the majority opposing it.
Source: AAP
Amongst them, national president of The Australian Funeral Directors Association Andrew Pinder, raised concerns about the imminent illegality of paying for funeral services in cash, which he says is standard practice for some, arguing that the law “would operate harshly on elderly and migrant communities”.
“Those who are elderly are often not technologically savvy”, Mr. Pinder says citing, among other reasons, a number of people wishing to avoid bank fees.
The legislation, he says, does not take into account that certain migrant cohorts prefer cash payments, and the likelihood for migrant funerals to cost over $10,000, given that some communities – like the extensive Christian Orthodox one - prefer burial over cremation.
Mr. Pinder says the cost of burial sites in some areas in metropolitan cities have doubled or even trebled in the last five to seven years. Other funeral directors agree with him.
“Leaving the funeral parlour expenses aside, just the price of a burial site in Sydney could be between $10,000 and $20,000, compared to around $1,300 that a cremation costs,” Spiro Haralambous, Principle of Euro Funeral Services tells SBS Greek.
While the committee recommended the passage of the law, it did so contingent upon recommendations, including that the government should ensure that the penalty provisions aren't "overly harsh' for one-time offenders, and that any potential negative impact on particular migrant communities should be identified, particularly in relation to funerals.
Mr. Spiro Haralambous Source: Supplied
Mr. Haralambous has been working in the funeral industry since 1993, long enough to know that some things remain unchanged when it comes to common practices within the Greek Orthodox community and others of predominantly Christian Orthodox faith.
“Considering our religion does not endorse cremation, a percentage of say 98% [of Greek Australians] will opt for a burial.”
He says the cash ban law could adversely affect vulnerable populations.
“More often than not you see the elderly putting aside the money to pay for their own funerals, money they have already been taxed on. This is something I’ve experienced over the years and continue to see it up to this day.
“They might keep their savings in a vase at home or under the bed, a lot of the times they would even provide detailed instructions on how they want the funeral, and all this they do to avoid creating a burden for their children.”
While pointing out that it is increasingly common nowadays for the children to take over the payment process too, Mr. Haralambous cautions that “many elderly would still follow this pattern”.
“They have been saving for years putting aside as much as they can. This law is going to affect them the most.”
For Mr. Haralambous’s business, it is estimated that a percentage between five and 10 per cent of clients still pay in cash.
In his submission to the Senate Committee, Mr. Pinder listed several religious groups that he believed would be impacted by the proposed legislation, citing the widespread Christian Orthodox faith within Greek, North Macedonian, Serbian, Ukrainian, Russian, Bulgarian, Egyptian and Lebanese communities, as well as European Catholic communities like Polish and Croatian or Vietnamese and Chinese Buddhist communities due to favouring cash payments.
Other submissions to the Senate inquiry expressed concerns regarding the availability of electronic banking in remote and regional Australia and the effect on people who don’t hold a bank account.
Objections also related to the efficacy of the measure in combating the black economy, potential issues for small businesses and specific sectors or even the effect of inflation and the potential violation of privacy and civil liberties. Some argued that the law would serve private interests and give extensive monitoring powers to private entities, like banks. The government, however, insists that the sole motive of the law is to crackdown on tax evasion and money laundering.
