If passed, the law would come into effect on January 1, 2020 and would apply to all cash payments made to businesses with an ABN. The penalties, jail time and fine would apply to both the individual and the business part of the transaction.

There are a couple of exemptions to the cash ban.

The $10,000 cash limit would not apply to individual-to-individual transactions, such as the private sale of a second-hand car.

The limit also wouldn't apply when depositing or withdrawing money from a bank.

[...] Head of CPA Australia, Dr Gary Pflugrath, agreed there needed to be a crackdown on the black economy but said linking criminal activity to all large cash transactions was "a step too far".

"This legislation is attempting to deal with a symptom, not the cause, of the black economy. While the use of cash in a large transaction may be an indicator of risk, it does not prove by itself that the behaviour is criminal," Dr Pflugrath said.

"The presumption that only tax evaders, money launderers and criminals use cash, and the mindset that these new offences are required to address criminality, has resulted in a proposed bill and instrument that run counter to well-established criminal law principles and have the potential to affect many Australians.

"The focus on criminalising certain cash transactions is an extreme response to the problem of avoiding scrutiny."