Large(ish) Cash Bank Deposit

Lgccamel on 25/09/2020 - 12:32

Hi,

I've been gifted around $20k from a family member who sold a house overseas. Unfortunately it's all in cash.

I want to deposit it in the bank to pay off some debts/home loan but I don't want to raise any alarm bells. I've been told has been done legally, but no one wants a call from the bank/ATO/police🙂

I'm aware there's some red flags if you deposit over $10k, but would there be the same issues if you deposited $5k four times over a couple of months? Or will this look like an income to the ATO?

Thanks!

Financial

Comments

    • Orico on 26/09/2020 - 23:10
      +1

      No, don't do that. You can land in big trouble! They can also prove that you didn't win at a casino.

  • mrvaluepack on 27/09/2020 - 01:15
    +1

    Lol. 20k is not large. dont worry about it.

    you should be more worried about someone robbing you on the way to deposit it

  • TheBird on 27/09/2020 - 02:08
    -1

    I did a quick look up. There's a $10k tax free threshold on gifts per annum and a maximum $30k over 5 years.

    See an accountant. Let them know the source too. You don't want to run afoul of some law in case that money was not declared when coming into this country. If memory serves me right, anything $10k or above must be reported.

    While I appreciate the appeal of avoiding paying tax, and $20k isn't a significant amount, I'd hate to see the next post coming from you asking about what to do when the tax department or another department has you in their sights.

    • Poor Ass on 27/09/2020 - 20:50

      Yeah but that's only for people on certain Centrelink benefits

      You don't pay tax either way but could decrease the benefits

      • TheBird on 28/09/2020 - 21:19

        You could be right, but I'd suspect a tax free threshold would have nothing directly to do with Centerlink benefits. Much like the earning tax free threshold.

        • Poor Ass on 28/09/2020 - 21:46

          Not income

  • moneyhungry on 27/09/2020 - 05:28
    +1

    I tried opening a hsbc account to deposit funds and they told me I needed to provide all documentation how I accumulated all my money. Never had to this before.

    • kale chips suck on 01/10/2020 - 09:18

      I had to set up an international HSBC account some years ago. The level of financial invasiveness was insane - I was trying to open a normal savings account, not borrow money.

      I filled out most of it though. Then they questioned my savings to income ratio and I explained it away with writing "hookers and cocaine aren't cheap. Well, good ones, anyway" . (The actual answer was I had just made up the numbers on the application form because I was not borrowing $)

      Anyway, they opened an account for me and it was the beginning of a short but horribe relationship.

  • mrama on 27/09/2020 - 08:33
    -2

    20k is large? ok lol

  • idonteven on 27/09/2020 - 09:28
    +1

    Mr gccamel, do you trust your wife?

  • Hamez89 on 27/09/2020 - 09:45
    +1

    20k you could easily have sold a car and gotten cash for it

  • El cheepo on 27/09/2020 - 10:20

    How did they get 20k in cash in?
    You can only bring 10k or less before having to report it anyway 🤷🏽‍♂️

    Anywho… just bank it with a note: gift.
    Done.

    • gromit on 27/09/2020 - 13:44
      +1

      you can bring as much as you like into the country. you only have to declare it on your incoming passenger card.

      • El cheepo on 27/09/2020 - 14:45

        Very true, thats what I’m trying to allude to.
        If it is all above board, it would have been declared and should be fine to declare as a gift when depositing.

        If they snuck it in and for what ever reason the bank wants to trace it back, they are kind of stuffed.

        If it’s all good, just bank it. Easiest simple way.

        If worried about tax, consultant an accountant as other suggested.

  • happydude on 27/09/2020 - 10:37

    What advice would you like? How to fill out the deposit form?

    Just bank it.

  • 91rs on 27/09/2020 - 11:20
    +2

    Curious how the cash arrived in Australia? hand carried in on a flight or via a EFT or something?
    That would be the red flag for me if it was undeclared or part of an even larger undeclared amount.

    • bmerigan on 27/09/2020 - 14:23

      Good question

  • netjock on 27/09/2020 - 12:05
    +1

    Would laugh if OP is thinking of getting into the money laundering business and crowd sourcing advice.

  • gromit on 27/09/2020 - 13:43
    +1

    There is nothing wrong with depositing a large sum, as you note it may trigger being flagged (but all that means is they might ask you to explain where it came from), but as long as you can explain where the money comes from (and it wasn't from a dodgy source) then there is no issue. Many also don't realise it isn't just single deposits that get flagged, if you spread them over a time period and if they aren't your usual pay this may also get flagged.

    • Blokeinhisundies on 27/09/2020 - 20:05

      The bank won't ask you any questions. If they do they have any suspicions you are dodgy they have to fill out a Suspicious Matter Report (SMR) and it is an offense for them to notify the customer of their suspicions. OPs deposit would result in nothing more than the bank filing the rquired the standard Austrac Threshold Transaction Report (TTR) and promtly forgetting about it.

      Source: Used to work in processing for the largest cash in transit company in the country and have had to file both SMRs and TTRs. SMRs were pretty rare but they did happen.

  • Herbse on 27/09/2020 - 14:19
    +2

    Contact me, I'll tell you how to do it safely

    [email protected]

    • El cheepo on 27/09/2020 - 14:48

      Are your assets unfrozen and bank fees in order now?

      Still waiting for my million dollars!

  • bmerigan on 27/09/2020 - 14:23
    +1

    The bank has to report it to the ATO if it's over $10k. A 1-off gift is not a "red flag" of any kind. Should be fine.

    • [Deactivated] on 27/09/2020 - 14:50

      (ノ｀⌒´)ノ┫：・┻┻ banks ahh

      • bmerigan on 27/09/2020 - 20:55

        That's what she said

  • adn on 27/09/2020 - 14:41

    Give it to me, I will help transfer it your bank account over 20 months.

    • Zachary on 27/09/2020 - 22:26

      That's actually a pretty good idea, banks can't get suspicious this way….but how does OP know you're not gonna keep the money yourself and not send anything over to him over a 20 month period?

      • adn on 28/09/2020 - 08:44

        Cause I am going to put in my offset account and earn 525 bucks over the 20 month period.

        • Zachary on 02/10/2020 - 19:21

          3% huh?

  • [Deactivated] on 27/09/2020 - 14:50

    How you get it in cash, how the hell did they get in cash, and how or what… (╯°□°）╯︵ ┻━┻

    Anyways even if you did deposit 1$ upwards of 10,000 to the bank it's fine, 10,000 no they report it if continuous just say it's a gift, they'll look at your tax file number, but if you add another 10,000 during the months they may inform both, so just shove the money in the bank and get it over and done with.

    They should have just loaned you their international card, so you can spend 20,000

  • nikey2k27 on 27/09/2020 - 16:58

    slow deport it you be right if you want decare it should be ok

  • HeWhoKnows on 27/09/2020 - 17:29
    -1

    Too easy
    Bank it in $5K installments

  • AJW on 27/09/2020 - 20:45

    Googled "cash gift ato rules"
    ATO site says:
    https://community.ato.gov.au/t5/Personal-tax-questions/Gift-….

    Generally, money given as a gift from a family member for personal reasons and the gift isn't connected to any income-producing activities by you, is not assessable income and not required to be reported in your tax return.

  • Poor Ass on 27/09/2020 - 20:54

    earn points with credit card purchases and use cash to pay off credit card

  • Flowerbomb on 27/09/2020 - 21:12
    +1

    Honestly, you’re overthinking it. 20k is small change to banks, so no sweat.

    • [Deactivated] on 28/09/2020 - 14:13

      Agreed $500k or $1 mil may set off the red lights but under that not likely, just too many transactions to worry about chump change

  • striker5950 on 27/09/2020 - 22:46

    your mattress

  • Choc83 on 28/09/2020 - 00:02

    $200 a week in groceries? There's $10,000 taken care of. More of you include petrol, other shopping etc. Maybe buy vouchers for things you normally buy - JB, Wish, Coles, Bunnings, Ubereats etc.

    Use the remainder to pay off your credit card bill + utility bills etc at the post office.

    20k isn't hard to churn through

  • living4music on 28/09/2020 - 00:33

    Wait until the next time he has 100K or 200K gift in Cash. He will probably be scared to death and burns all of it.

    • mini2 on 28/09/2020 - 16:06

      Someone I know did just that, no questions re AML/CTF but the ATO did ask the question where's it from as the amount is slightly more than the couple's combined annual income. Explained to them it's a gift then ATO buggered off.

  • lint on 28/09/2020 - 10:14

    Just deposit the money.

    You might receive correspondence from your bank asking for more information about your personal circumstances that gets passed on to Austrac, as per their legal obligations. As long as the money's legit, there's no reason to be worried about any follow up.

  • trapper on 28/09/2020 - 11:52

    Family member sold a house overseas… and got paid cash… in Australian dollars?? Yeah this is dodgy for sure. lol

    Put $500 in your wallet and $19,500 under your mattress, top up wallet as needed.

    • baldur on 29/09/2020 - 12:45

      What makes you think it is paid in aud?

  • Davo1111 on 28/09/2020 - 13:53

    If it's legit, who cares if they want to report it to the government

    The only thing I'd care about is tax implications

  • Tripnfelt on 28/09/2020 - 15:49

    Interesting, I’d just get some home improvements and pay the tradies cash. Security shutters, grey water, solar+battery, NBN to premises etc.
    Maybe even put in pool.

  • hotpotdad on 28/09/2020 - 16:23

    You can get the family member to fill out a Statutory declaration for Gifting money (dated and signed) as proof if you are ever asked by the ATO.
    There are a few examples online.

  • Brianqpr on 28/09/2020 - 18:57

    Is it in AUD?

    I sold my car a few weeks ago for $20k cash and had no dramas depositing it with Westpac the next morning.

  • subywagon on 28/09/2020 - 19:42

    I'll pm you my bank account details, I'll be happy to take the heat for you for a small fee, $20k.

  • Trioboy on 28/09/2020 - 20:35

    I think we got 20k plus in gifts for our wedding. We diposited it in the bank and didnt think much of it. I hope im not in some watchlist.

  • Akya on 28/09/2020 - 20:40

    My inlaws gift us money for bdays/Christmas etc (~1k euro each time). They also gifted us ~10k euro from a house sale to help pay for our car loan. We used to get them to transfer directly into our Australian bank (NAB) but after moving to ING we couldn’t receive international transfers.

    If you don’t have the cold hard cash gift yet, I suggest looking into TransferWise. You can make up a bank account in your relative’s currency and they have low fees compared to banks.

  • Cul8r on 29/09/2020 - 10:26

    Congratulations on your multiple, big wins at the casino.

    I’m surprised after your first win you went back every week and won more! But good on you, when you’re hot, you’re hot.

    I must say… it’s a good thing it wasn’t on the pokies because they write cheques, and who banks cheques these days… really.

  • TheBean on 29/09/2020 - 14:54

    The banks aren't going to care for $20k. You'll be fine, don;t waste money if you are seeing an accountant just for this…

  • YoungQuan on 29/09/2020 - 17:00
    +1

    what a bunch of peasants sweating over $20K…. you obviously have no idea how much cash gets transacted daily around the country, no one is going to give a toss about this drop in the ocean

  • Unsafe on 30/09/2020 - 09:10

    Former ATO employee here. This information is opinion only.
    Tax is payable on income only. Gifts are not income. Tax has already been paid on the gift, when it was attibuted to whoever earnt it.
    The ATO may recieve an alert. You may recieve a letter asking you to add the funds to your taxable income, after you lodge the tax return for the financial year in question, if necessary. It's not, you wouldn't.
    You may see the gifts incorrectly appear as income, pre-filled in your e-tax. (Possible, but rare).
    Based on your question, there's no second piece of data that would corroborate a case for audit.
    Again, this is an opinion, not financial advice.

  • tooblue on 15/10/2020 - 01:56

    This post has raised enough suspicion. AFP / ASIO / ATO / AUSTRAC / DFAT have been notified.

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