So often new legislation I n an attempt to alter attitudes and behaviours, illegal activity or level the playing field. In fact, this can become a governments often use legislation to intervene. measure is likely to adversely affect legitimate and Three recent national proposals look set to affect compliant cash transactions above the limit. sledgehammer to crack the residential building industry in the next The federal government is consulting on a walnut. 12 months: the proposal. HIA has highlighted a number of • limiting the use of cash for transactions roadblocks that stand in the way of addressing of more than $10,000 tax leakage, tax avoidance, and criminal activities • compelling businesses to investigate associated with large cash payments. modern slavery risks in their supply chain As an example, if two parties agree to transact • changing the payment of GST on settlement. in cash over the limit, who is liable to report the The federal government’s intent is to address behaviours? And if reported, who would be adverse behaviour. But the proposed regulatory penalised: the trader, the consumer, or both? And solutions will potentially impose burdensome ultimately why, where all laws have been complied regulations on the industry without sufficient with, should people be unable to chooseto use evidence that the reforms will specifically target the cash for transactions over $10,000? undesirable behaviours. HIA awaits the outcome and will update members as the consultation process progresses. Proposed legislation: Limits on cash payments Proposed legislation: Modern slavery Generally, government action addressing The activities encapsulated by the term ‘modern businesses operating outside the tax and regulatory slavery’ are, without question, reprehensible. systems (also known as the black economy) is a These include slavery, forced and bonded labour, positive way of curbing illegal activity and creating aexploitation, human trafficking, and the worst forms level playing field across all industries. Naturally thisof child labour. includes the residential building industry. In response to these abuses, the government However, if the current proposal to limit single has introduced legislation that would require that all cash transactions economy-wide to $10,000 or Australian businesses with an annual revenue of more less is implemented, it will do little to stamp out than $100 million lodge a ‘Modern Slavery Statement’. proposals in the pipeline Story: Melissa Adler SEPTEMBER 2018 HOUSING 37 IN FOCUS • INDUSTRIAL RELATIONS