WHAT IS THE TAX LAW REGARDING PRECIOUS METALS IN AUSTRALIA

Discussion in 'General Precious Metals Discussion' started by John s, Jul 29, 2020.

  1. John s

    John s New Member

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    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)
     
  2. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    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.

    Screen Shot 2020-07-29 at 9.25.13 am.png

    Screen Shot 2020-07-29 at 9.29.42 am.png

    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.
     
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  3. leo25

    leo25 Well-Known Member Silver Stacker

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    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.
     
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  4. Silverling

    Silverling Well-Known Member Silver Stacker

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    I agree with the 2 answers above.
     
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  5. John s

    John s New Member

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    I
    Informative, thanks very much.
     
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  6. Ag bullet

    Ag bullet Well-Known Member

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    ATO

    Avoid
    Tax
    Often
     
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  7. John s

    John s New Member

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  8. Tin Can

    Tin Can Active Member

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    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?
     
  9. wrcmad

    wrcmad Well-Known Member Silver Stacker

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    lizzyno.jpg
     
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  10. Ag bullet

    Ag bullet Well-Known Member

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

    wrcmad Well-Known Member Silver Stacker

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    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?
     
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  12. SilverDJ

    SilverDJ Well-Known Member

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    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.
     
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