In Australia, if you receive, handle, conceal, or use money or property gained from illegal drug activity, you can be charged with dealing with the proceeds of crime.
These offences are taken very seriously by courts and law enforcement. Whether you’re accused of handling cash from drug sales, depositing funds into a bank account, or laundering profits through a business, the penalties can include large fines, asset confiscation, and lengthy prison sentences.
This guide covers what it means to deal with drug crime proceeds, how charges are laid, what the court process involves, the available defences, and the state-by-state legal framework.
“Proceeds of crime” refers to money, assets, or property obtained directly or indirectly from criminal activity, including:
Drug trafficking or supply
Manufacture or cultivation of prohibited substances
Importation/exportation of illegal drugs
You may be charged with a proceeds of crime offence if you:
Receive or hold drug money
Deposit large sums of unexplained cash
Buy property or vehicles with drug money
Help someone launder drug proceeds through legitimate businesses
Authorities investigate these offences using:
Financial surveillance and banking reports (e.g., AUSTRAC alerts)
Cash seizure during drug raids
Phone intercepts and text messages
Property purchases inconsistent with income
Business audits and forensic accounting
Even if you are not charged with a drug offence, you can still be charged for dealing with the proceeds of someone else’s drug crime.
These offences are heard in:
Magistrates’ Court for summary offences (smaller amounts)
District/County or Supreme Court for indictable offences (larger sums or organised activity)
The prosecution must prove:
You dealt with money or property
You knew or suspected it was derived from a drug offence
The property had a criminal origin
In more serious cases, prosecutors may also apply for asset freezing or confiscation orders.
Common legal defences include:
Lack of knowledge – You didn’t know the funds were from drug activity
Legitimate source – The money/property came from lawful income
No dealing – You didn’t use or control the money/property
Duress – You were forced or coerced into participating
Drug offences in Australia are governed by both Commonwealth and state or territory laws. While federal law deals with serious crimes like drug importation and trafficking across borders, each state and territory has its own legislation covering offences such as possession, supply, and cultivation.
Legislation:
Crimes Act 1900 (NSW) – Section 193B (Dealing with proceeds of crime)
Confiscation of Proceeds of Crime Act 1989 (NSW)
Penalty:
Up to 20 years’ imprisonment for proceeds of drug crime
Asset freezing, restraining, and forfeiture possible
Legislation:
Crimes Act 1958 (VIC) – Section 195 (Handling proceeds of crime)
Confiscation Act 1997 (VIC)
Penalty:
Up to 15 years’ imprisonment
Property restraint and unexplained wealth orders possible
Legislation:
Criminal Proceeds Confiscation Act 2002 (QLD)
Criminal Code Act 1899 (QLD) – Section 400
Penalty:
Up to 20 years’ imprisonment
Automatic forfeiture of property derived from drug offences
Legislation:
Criminal Code Act Compilation Act 1913 (WA) – Sections 563A–B
Criminal Property Confiscation Act 2000 (WA)
Penalty:
Up to 20 years’ imprisonment
Mandatory confiscation of assets if convicted of serious drug offences
Legislation:
Criminal Assets Confiscation Act 2005 (SA)
Criminal Law Consolidation Act 1935 (SA)
Penalty:
Up to 15 years’ imprisonment
Asset confiscation for suspected drug crime connections
Legislation:
Criminal Code 2002 (ACT) – Part 400
Confiscation of Criminal Assets Act 2003 (ACT)
Penalty:
Up to 20 years’ imprisonment
Courts can impose unexplained wealth orders
While we don’t provide legal advice—as every case is unique and only a qualified lawyer is permitted to do so—we’ll do our best to guide you with relevant general information. If we’re unable to assist, we can refer your query to a licensed criminal lawyer.
