WHAT IS THE TAX LAW REGARDING PRECIOUS METALS IN AUSTRALIA

[John s]

Hi all i would love it if someone could shed some light regarding the tax law associated with precious metals. I called the ATO regarding this matter and no one could give me an answer.

-Is there capitals gains tax if so whats the percentage to the dollar?

-Is there anything else i should know? (As I dont want to breach the law)

 

[mmm....shiney!]

Hi all i would love it if someone could shed some light regarding the tax law associated with precious metals. I called the ATO regarding this matter and no one could give me an answer.

-Is there capitals gains tax if so whats the percentage to the dollar?

You pay Capital gains Tax at your marginal rate (in other words it's added on to your income) on any profits you make. If you hold the asset for longer than a year you get a 50% deduction on the net gain (profit after expenses) you made.

Say you have a job that pays you $70 000/annum. You sell bullion at a net gain of $10 000 within 12 months of its purchase. Your total taxable income will be $80 000 for the year. And you will have a total tax liability of around $17 500.

Say you have a job that pays you $70 000/annum. You sell bullion at a net gain of $10 000 which you held for at least 12 months so you get a 50% discount on the net income earned for that asset ie taxable income is now $5 000 instead of $10 000. Your total taxable income will now be $75 000 for the year instead of $80 000. And you will have a total tax liability of around $16 000.

Click on the thumbnails below to see the calculations.





You cannot claim a loss against any other income earned but you can offset that loss against any other capital gain.

-Is there anything else i should know? (As I dont want to breach the law)

Keep receipts or a record of your purchases. Don't smoke on planes and indicate when turning.

 

[leo25]

-Is there capitals gains tax if so whats the percentage to the dollar?

Yes and the tax would be whatever your tax bracket is. But if you only sell a coin every blue moon then i wouldn't worry about declaring anything as it's more of a hobby rather than investment.

 

[Silverling]

I agree with the 2 answers above.

 

[John s]

I

You pay Capital gains Tax at your marginal rate (in other words it's added on to your income) on any profits you make. If you hold the asset for longer than a year you get a 50% deduction on the net gain (profit after expenses) you made.

Say you have a job that pays you $70 000/annum. You sell bullion at a net gain of $10 000 within 12 months of its purchase. Your total taxable income will be $80 000 for the year. And you will have a total tax liability of around $17 500.

Say you have a job that pays you $70 000/annum. You sell bullion at a net gain of $10 000 which you held for at least 12 months so you get a 50% discount on the net income earned for that asset ie taxable income is now $5 000 instead of $10 000. Your total taxable income will now be $75 000 for the year instead of $80 000. And you will have a total tax liability of around $16 000.

Click on the thumbnails below to see the calculations.

View attachment 41688

View attachment 41689

You cannot claim a loss against any other income earned but you can offset that loss against any other capital gain.

Keep receipts or a record of your purchases. Don't smoke on planes and indicate when turning.

Informative, thanks very much.

 

[Ag bullet]

ATO

Avoid
Tax
Often

 

[John s]

ATO

Avoid
Tax
Often

 

[Tin Can]

I recall reading on the ATO website that if an item cost less than $500 to acquire, GCT does not apply if you sell it.
Or it might be only if the sale price is less than $500?

 

[wrcmad]

Is there capitals gains tax ......

 

[Ag bullet]

what about capital loss refund? or are they only interested in collecting money?

 

[wrcmad]

what about capital loss refund? or are they only interested in collecting money?

Does anyone really take a loss on metals?
Honestly, they are the fkn grandpa-level boring investment, but everyone seems to hold so long they never seem to take a loss?

 

[SilverDJ]

what about capital loss refund? or are they only interested in collecting money?

You cannot take a capital loss as a refund, nor offset it against regular income. But it does carry over indefinitely. So if you last capital loss was 20 years ago, and you only just made a capital gain, you can offset that loss from 20 years ago.