Having to carry somewhat large amounts of cash happens to us all and this is needed during times of emergency where only cash can be used, rather than credit. So, you might have a large sum of cash with you at home for such instances. This is a common practice that you shouldn’t be worried about.
However, you may be the type of person who does not believe in the corporate world and doesn’t want the banking system to store your hard-earned money.
If this is you, then you are probably wondering if you’re in danger.
No, not from getting robbed, but rather if you’ll be going to jail for breaking a law by keeping such copious amounts with you.
Let’s see what are Australia’s laws when it comes to how much cash you can legally keep inside your home.
How Much Cash Can You Legally Keep Inside Your Home?
Currently, there are no laws in place that govern the amount of cash you are allowed to store in your home.
This makes sense as many businesses, especially retail stores, keep large amounts of money with them merely as floating cash. So, why wouldn’t a homeowner be allowed to do the same?
You may need it for something really important.
Now that you know you can legally keep as much cash with you as you want, you shouldn’t take advantage of this.
If police officers ever visit your home during a raid of your neighborhood, you might be on their radar from here on out as having a large amount of cash is indicative of illegal activities, especially money laundering and drug dealing.
Due to this, they may try and confiscate the cash to examine it.
This can become especially risky if the cops aren’t too trustworthy and decide to pocket some of it. So, why would you allow this to happen?
There Are Other Money Regulations In Place
Now that you know you can carry as much cash as you want, you have to be aware that there are numerous other instances where you can’t get away with doing so.
For example, you cannot leave Australia with cash that is over $10,000. If you decide to, you should declare that you are doing so at customs. And if you want to withdraw money from a bank, and it’s over $10,000, you might get interviewed by the bank’s staff and have a report filed back to authorities.
Regulations For Travellers
The old saying “cash is king” might not always be true in the long term, especially when we consider the effects of inflation. Cash kept in a safe at home may feel secure, but it may also diminish in purchasing power over time.
Travellers entering and departing Australia must be aware of national and international currency regulations. The law stipulates that there is a limit to the amount of physical currency that may be brought into or taken out of Australia. The Australian Transaction Reports and Analysis Centre (AUSTRAC) oversees these regulations.
Any traveller must report any currency they are carrying that values at 10,000 Australian dollars or more, or its foreign currency equivalent. If you’re thinking of keeping a lot of money at home, note that if you decide to travel with it later, you’ll have to declare it.
Also, it’s not just travellers entering and departing Australia that must report large sums of cash. If you deposit more than $10,000 into your account in one day, financial institutions in Australia must also report the transaction to AUSTRAC. This is to prevent money laundering and other illegal activities. The limit isn’t per deposit, but per financial institution, per day.
Large Amounts of Cash At Home
In certain situations, keeping large amounts of cash at home may have implications for your Centrelink income assessments.
The value of the cash is considered a liquid asset and could potentially affect your eligibility for some benefits.
Keeping a lot of money in cash at home also comes with its own set of risks. For instance, if you lose the cash or it gets stolen, there is usually no way to retrieve or replace it.
This is why many consider it safer to keep money in a financial account rather than in physical currency.
As for potential penalties, failure to declare amounts above the threshold can result in a penalty or even imprisonment.
So, if authorities suspect that your cash has been gained through illegal activities, they may launch an investigation.
An older idea of money management might involve hiding cash around the house, but in this day and age, with so many non-cash resources available, it might be wiser and safer to explore other ways of storing your funds.
This is especially true given the additional layer of financial security that bank accounts, investments, and other financial resources provide.
Is Keeping Cash at Home Really Worth the Risk?
There’s something appealing about the idea of having cash on hand, tucked away safely at home. It’s accessible, tangible, and feels like a bit of a personal safeguard. But, realistically, keeping large sums of cash at home has its own set of risks and downsides. Not only is it vulnerable to theft or loss, but it also depreciates over time due to inflation, meaning your purchasing power actually decreases the longer it sits.
In today’s financial landscape, with so many secure options available – from bank accounts with added protections to investments that can grow your money – holding onto large amounts of cash at home might not be as wise or necessary as it once was. If you’re considering it, think about your long-term security and explore safer, more productive options for your money.
