Hi there. It is legal for an employer to pay you in cash rather than to a bank account. However, cash-in-hand jobs are sometimes offered by businesses deliberately using cash transactions to hide their income to avoid paying tax to the Australian Taxation Office, or to avoid deducting tax or paying superannuation to employees.

If you are paid your wages in cash, this could mean that you are being paid less than the correct award wages. As you have not been asked to complete a Tax File Number Declaration, you could also end up with a large tax bill at the end of the financial year because your employer has failed to deduct tax from your pay. You may also be missing out on superannuation contributions if you are at least 18 years old and earn over $450 per month. And you may also find that you are not covered by workers’ compensation insurance, which is a compensation scheme available to most workers who are injured on the job.

Despite receiving wages in cash, you are still legally entitled to receive a payslip within one working day of pay day showing all your earnings and the amount of tax deducted. You are also entitled to receive a ‘payment summary’ (or PAYG payment summary) at the end of each financial year showing your full earnings for the year and how much tax has been deducted.

Suggested way forward

You should check with your employer that you are being paid the proper wage (including superannuation contributions) and that the right tax deductions are being made for each pay period. You can contact the Fair Work Ombudsman for more information about your rights (www.fairwork.gov.au) or speak to an employment lawyer. By pressing the “Consult a Lawyer” button, LawAdvisor can help you search for experienced lawyers and obtain fee proposals for their services. Costs for legal advice and representation will vary between providers based on experience and the scope of services.