Free tool

Cash Payment Checker

THE HONEST ANSWER

Paying employees in cash is legal in Australia IF you do six things. It's illegal if you skip any of them. This tool tells you which side of the line you're on — no preaching, just the law.

Are you doing all 6 of these?

I have a signed TFN Declaration from the employee on fileI withhold PAYG income tax from each cash payment (per ATO tax tables)I pay 12% Superannuation Guarantee to the employee's nominated super fundI lodge Single Touch Payroll (STP) reports each pay cycleI issue an itemised payslip within 1 working day of each paymentI keep time + wages + super records for 7 years

Single cash payment amount (one-off)

If any single cash payment is $10,000 or more, AUSTRAC reporting also kicks in.

✓ Legal — cash payment is fine

All 6 compliance pillars met. Paying in cash is just a payment method — the legal obligations are about the surrounding tax + super + records, not how the money changes hands. Continue running compliant cash payroll.

This tool covers the Fair Work + ATO + super compliance side of cash payments. Industry-specific rules (e.g. building & construction cash-payment restrictions under state-level black-economy regulation) may add further obligations.