Need help on Capital Gains Tax

[boston]

See http://www.ato.gov.au/corporate/content.asp?doc=/content/00208572.htm&page=12#P310_29582 (The Exemptions section under "Introduction to capital gains tax")

Is that the law, or the ATO's interpretation of the law? At times the two can be diametrically opposed.

 

[bron suchecki]

Taking the GST exemption of bullion coins one step further to say that they are also eligible for the CGT exemption keeps the general "tax-exempt" status of the bullion coins intact without contradicting the GST rulings on either type of coin (I hope).

GST status of bullion coins is not about exemption, it merely explains how metal is categorised, saying that numismatics are Taxable (10%), bullion coins are Input Taxed (0%) and newly mined refined metal is GST Free (0%). You cannot "extend" this to imply CGT exemption.

What is important about the GST ruling is the reasons given for the different GST treatment of precious metal coins (coins being a generic term). These reasons (coin is traded primarily on spot price, small premium, no rarity etc) are likely to be applied by the ATO to clarify what "coin" means in respect of http://www.ato.gov.au/corporate/content.asp?doc=/content/00208572.htm&page=12#P310_29582

I consider it risky to assume that "coin" means bullion with respect of CGT exemptions.