When purchasing investment grade gold and silver bullion, there is no GST, but the definitions of ‘investment grade’ for precious metals are very specific. Here are the standards:
- Gold must be 99.5% pure or greater.
- Silver must be 99.9% pure.
- Platinum must be 99% pure.
According to the ATO, “No regulations have been made to specify any other substance. To be precious metal for GST purposes, the metal must therefore be gold, silver or platinum.” By this definition, you may be required to pay GST on palladium products.
- To be considered investment grade bullion, the precious metal product must be tradeable on the international bullion market as a bar, coin, tablet or wafer.
- The product must be stamped with a manufacturer’s mark to guarantee its purity and quality.
Is there tax on selling gold in Australia?
You may be required to pay capital gains tax if your investment grade bullion has a greater value at the time of sale compared to the value at the time of purchase. However, sales of investment grade bullion do not attract GST.
Is there GST on numismatic and collectible coins?
To be exempt from GST, precious metal items “must have the character of the metal rather than the character of a thing made from the metal,” according to the ATO. The vast majority of bullion coins and tablets traded by ABC Bullion are exempt from GST, because they are investment grade bullion. However, numismatic coins purchased online or from a collectible coin dealer may attract GST depending on the coin.
Is there GST on gold jewellery?
Yes, jewellery usually attracts GST.
More information? To find out more, give us a call on 1300 023 782 or email team@cdrta.com.au.
The team at C&D Restructure and Taxation Advisory are here to help. As part of the Vault Group we can offer the full suite of financial products and advice to help you navigate the business landscape. Schedule a meeting here via Calendly or give us a call on 1300 1 VAULT (1300 182 858)
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