Maybe the $1000 limit is triggered when you receive a payment as a seller for that amount but it is not a general limit.  My OH has received personal payments for more than that and it has not triggerd any reaction from paypal.

But I do know that the Australian Money Laundering Laws kick in when an amount of $10,000 has gone through the account, no matter whether it is in or out.  It not only requires a personal identification but the usual 100 point verification required by Australian Law for bank accounts.