Public Message from South Gippsland Bullion.

Basically you need millions of $$ turnover to make a living out of it.
For SGB it was just a hobby, but turnover was more than being able to run it as a hobby so we were stuck in the middle pretty much.
The buyers club was not as small as some might think, we pushed some big numbers thru the industry. We supplied Australian jobs, and also supplied the other industry leaders with some big sales. While we were small bullion dealers, the buyers club was huge and any dealer that we purchased from would attest to that.

 

You can get specific coins and bars through allocated programs, e.g.

This could work. But it comes down to the same reason why you bought the coin. Surely allocated or through a normal dealer wouldn't make a difference if you bought a 1oz kangaroo?

 

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Assuming they ran their books properly, safe, because it's in your name, you own it.

 

Yeah, how can we ever really know now. It all seems so open to interpretation

 

This is going to make whether GST is payable or not incredibly complicated.

For example, a coin may not have GST payable one year, and then demand for that coin increases the next, and GST is then payable (as its value is no longer purely a function of the spot price).

 

Do you have an exact quote for that that you can share yet iceblue? Seems like an extraordinary claim for them to make.

 

I wont be posting any quotes from the document supplied by the ATO.
Selling into the retail market should have GST they reckon.

 

Don't give them any ideas, BB :/

 

Australia's tax system is ridiculous. Back in 1999, Peter Costello said "after 99 years of Federation we have a tax act and a tax system which is a dogs breakfast." And it just got worse from there.

 

A year ago there were some warnings elsewhere that a big tax crackdown is in progress across other asset classes too. Time to create a separate thread on this?

From a property forum: https://propertychat.com.au/community/threads/ato-push-on-ebay-gumtree-etc.10877/

 

^^^ so if you once insured something, and now no longer insure it, then the ATO flags it.

 

The 2003 ruling specifically states that banks, etc, invest in bullion via coins (bullion coins), therefore bullion coins are an "investment form". I would wonder if the tax officials doing the auditing are in themselves a part of the problem. The same coin used for investment, potentially is a collectors item, and I would wonder if the same coin sold in the dozens by, e.g. GS, as an investment form shouldn't be GST free (that is input taxed, but no GST chargeable), would be GST taxable if sold in a coin shop as a collector's item. The stamping of the, e.g. bar, by e.g. the Perth Mint, shows provenance (again according to the ruling, and shouldn't make the bar GST-taxable when sold on as an investment item, i.e. has the properties of the metal, but would be GST-taxable if sold as a collector's item by a coin shop.

It will be interesting as this shakes out to see who gets hit. I can see a situation where the nature of the purchaser becomes an issue as to whether or not GST is chargeable: is this person buying in bulk as an investor in metal would, or are they buying as a collector, even if their intention is that the collection is an investment.

 

The fundamentals of the tax act are very simple: income is taxable and expenses are deductible. It's all of the arseholes who try to dodge that simplicity and the moron-hair-splitting courts that lead to the complications. If 99% of the tax act were deleted and the courts overseen by people without vested interests, there would be no problem with the tax system.

Everybody wants everybody else taxed. It's always someone else who isn't paying their fair share. Hence the Tax Act that we have. And then there is the Commissioner of Taxation who seems to think that collecting tax is for personal glorification .....

 

A possible sollution would be to copy the UK. All silver is subject to GST but gold isn't.

 

Problem is, I sell $100 silver bar plus an extra $10 GST, but I have no mechanism to pay it as I am not registered for GST.

 

I thought individual sales by persons not running a business are GST-free, at least under a certain threshold.

 

Is GST payable on offshore purchases? For example a Kiwi buying from overseas?

 

No GST on overseas sales.

 

Please keep in mind that this issue currently only effects South Gippsland Bullion. So dont buy from us lol.
Iam unaware of this effecting any other dealer at present.

 

Perth Bullion until recently sold their own 1 oz silver rounds. I wonder what happened to those? Were they all sold, or were they pulled until some certainty in GST is reached?