Being paid in cash isn’t illegal in Australia; pretending it never happened is. Employers paying cash must still keep records, issue payslips, withhold PAYG tax where required, and pay super—skip that and it’s unlawful. Employees must declare all income to the ATO, cash or not, and pay the tax that goes with it. Using ‘cash‑in‑hand’ to dodge tax, minimum wage, penalties or leave entitlements is illegal, and both parties can cop fines and back‑payments. If you’re genuinely contracting, you’ll need an ABN and proper invoices; sham contracting to duck employment obligations will also land you in strife. Bottom line: cash is fine, non-compliance isn’t—keep records and do the right thing.
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