I see 4 different way dealers handling GST issue on second hand repurchased numismatics, and non 999 gold and silver. 1. Customers pay GST on the second time and the dealer pay that money to the government. (This is the most stupid way because hurting the dealers with low turnover as they have to ask 10% higher prices like other dealers, and therefore they have less businesses from customers.) 2. Customers pay GST on the second time and the dealer also ask input tax refund from the government and keep one on resale. (This is the way smartass dealers take an extra 10% profit from you.) 3. Customers do not pay GST because dealers are not sure how to handle GST on second-hand sales, (but they might know that GST only payable once) so they don't bother. 4. Dealers clam the input GST back from the government and price resale price accordingly. This is the correct way, but yet to see one dealer to practice it. (Example; Dealer buy a coin for $110 so he can calm a tax credit of $10. Sell the coin for $121. This $121 breaks up as $100 for the cost price and $11 for GST payable, so this dealer makes $10 net profit).
I did some research when doing the following thread: http://forums.silverstackers.com/to...-tax-gst-on-precious-metals-in-australia.html My understanding is that #4 on your list is correct - I would assume that dealers selling say sovereigns with less than 10% spread would be an indication that they are doing it properly - e.g. W Davis & Son - right now buy is $328, sell is $348 - that would be an example of correct assessment. Ostensibly such pricing would see a gross profit of $18.18, and $1.82 GST net payable on the sale ($31.64 - $29.82 = $1.82).
