Australian budget 2026 CGT implications

OldFarmer

OldFarmer

New Member
Capital gains tax has been changed in the Australian 2026 budget last night. This has major implications for people who have invested in precious metals and need to calculate the capital gains tax liabilities when selling. I'm interested to hear what people think about this development.
 
This place comes & goes in waves , when the market is volatile stackers goes quiet .
Reddit is full of clowns ,Facebook is full of thieves .
No idea about Discord , haven't ventured down that road .
I believe CGT should be completely abolished .
 
OldFarmer said:
Wow, 4 hours later, just 14 or so views, no replies. Sad to see that this forum has died over the years. I haven't posted here for a helluva long time. Where has the active discussion gone? Reddit? Discord?
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Stackers have day jobs.

Won’t be that much impact on assets you already hold.

Even if you sell after July 27 the 50% discount will still apply to the gain up to July 27 and the new rules only apply to the gain after that.
Things like shares and PMs have constant market values so easy to know what the asset value is at 1 July 27.
 
Yes, Trew, you make some good points. Here's what I understand as of today:

On 1 July 2027, we will all be required to take a "snapshot" of the market value of our precious metal holdings, with evidence etc, and store that away.

When we eventually sell, for instance, a kilo bar of gold bought in years past, we will have to declare:

  1. The gold bar's cost base (purchase price + costs)
  2. The price obtained (the so-called "Capital Proceeds")
  3. The fraction (called A) of the proceeds gained between purchase date and snapshot value as recorded. This amount can be halved for tax purposes (CGT discount of 50%)
  4. The remaining fraction (called B) of the gains is then lessened by a formula that incorporates the annual inflation rate
  5. Add A and B, giving total taxable gain (C)
  6. Add C to your taxable income

Some irritating issues:

If you try to sell the gold bar in a year in which you know you'll have no or little income, so that you can take advantage of the low tax rate that applies to smaller incomes (which used to be 23%), that's been blocked. The minimum tax rate on capital gains is now 30%.

Inflation rates are highly manipulated and usually grossly underestimate real inflation. This means the capital gain is overestimated for tax purposes.
 
trew said:
Stackers have day jobs.

Won’t be that much impact on assets you already hold.

Things like shares and PMs have constant market values so easy to know what the asset value is at 1 July 27.
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I wouldn’t be surprised if a sharp downward correction would happen just prior to 1st July 2027 then accelerate upward afterwards, maybe not so much PM’s but property and shares
 
[QUOTE

Some irritating issues:

If you try to sell the gold bar in a year in which you know you'll have no or little income, so that you can take advantage of the low tax rate that applies to smaller incomes (which used to be 23%), that's been blocked. The minimum tax rate on capital gains is now 30%.

[/QUOTE]

Looks like me and the missus will have to come out of retirement and work part time up to the $18200 each tax free
Not going sell any assets for captital gain to pay 30% tax
I already paid tax on the money earned to purchase assets and also paid a heavy price in deteriorated physical health.
 
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One of the reasons I have old coins is they have been "Pre-CGT assets" and exempt from Capital Gains Tax for the last 40 years. Under the new rules, this is changing, but there is a significant "buffer" built in to protect historical gains.

The most important thing to know is that old coins remain entirely tax-free until July 1, 2027 and re valued on that date for future CGT​

Ask AI about bullion.
 
Go onto Unemployment benefit is roughly $20k per year for a single person.
Sell a few ounces of gold a year at with a tax bill of say a few thousand and you’ll be way in front.
Unemployment benefits has offset the 30% cgt
And if you’re a couple…….. Potentially receiving $50k per year after tax.
Own your own home no other liabilities, this could be a great deal
Previously a couple could sell up to $36400k tax free through the income tax threshold now 30% of that the government wants to steal.
Don’t have to sell as much now leaving more gold and silver in your pocket and the taxpayer picking up the capital gains tax bill.
Got to love the Labor government, they just keep on forcing you to take other peoples money.
 
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betterinvestmentthanshare said:
Unemployment benefit is roughly $20k per year for a single person.
Sell a few ounces of gold a year at with a tax bill of say a few thousand and you’ll be way in front.
Unemployment benefits has offset the 30% cgt
And if you’re a couple……..
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I a
ozcopper said:
That is not 100% right. If you bought the coins after 1985, you still have to pay CGT on them. In places like the U.K, their gold sovereigns are tax free when you sell them but not in Australia.
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I am old enough to have "acquired" my coins pre 1985. For example I had over 1000 round 1966 50 cents. I didn't purchase them as such as they were in circulation. I sold some recently and have not declared the proceeds which was significant.
 
OldFarmer said:
Wow, 4 hours later, just 14 or so views, no replies. Sad to see that this forum has died over the years. I haven't posted here for a helluva long time. Where has the active discussion gone? Reddit? Discord? Facebook?
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To be honest, I saw that you were a new member who I had never seen any other posts from, I read it, and figured you were a journalist or blogger who had just joined so you could get some quotes from precious metal stackers. Or from the ATO looking to see if we had any ways we were going to try to get around the new changes. Either way, didn't feel comfortable engaging.
 
Jislizard said:
To be honest, I saw that you were a new member who I had never seen any other posts from, I read it, and figured you were a journalist or blogger who had just joined so you could get some quotes from precious metal stackers. Or from the ATO looking to see if we had any ways we were going to try to get around the new changes. Either way, didn't feel comfortable engaging.
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There are always ways of getting around things legally, corporations are a great testament to this. Do as the corporations do and bring down to your level
 
Jislizard said:
To be honest, I saw that you were a new member who I had never seen any other posts from, I read it, and figured you were a journalist or blogger who had just joined so you could get some quotes from precious metal stackers. Or from the ATO looking to see if we had any ways we were going to try to get around the new changes. Either way, didn't feel comfortable engaging.
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Bullion may be different. I sold my 1966 rounds on this forum to a member who gave me a nice reference. Everything I mentioned was checked by Gemini AI. Even accountants (and the ATO) use AI
 
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