Gold tax in Australia: GST and CGT

Two taxes decide what Australian gold buyers really pay: GST at the counter and capital gains tax (CGT) when they sell. This guide walks through both using the Australian Taxation Office's (ATO) own ruling and guidance, then shows the numbers in Australian dollars. It is general information, not tax advice; a registered tax agent can apply it to you.

Do you pay GST on gold in Australia?

Not on investment gold. The GST law defines "precious metal" in section 195-1 of the GST Act, and the ATO explains it in Goods and Services Tax Ruling GSTR 2003/10. Gold counts if it is at least 99.5% fine and in an "investment form", which the ruling says means it:

• "is capable of being traded on the international bullion market, that is, it must be a bar, wafer or coin";
• "bears a mark or characteristic accepted as identifying and guaranteeing its fineness and quality"; and
• "is usually traded at a price that is determined by reference to the spot price of the metal it contains."

The ruling then sets out how the GST applies:

Source: ATO GSTR 2003/10, paragraphs 7 to 16. "Input taxed" is an ATO term: the sale carries no GST, but the seller cannot claim credits for GST on its own inputs.

Whichever label applies, a buyer of qualifying bullion pays no GST. When you sell investment gold back to a dealer, there is no GST on that sale either.

Which gold coins and bars are GST-free?

The ruling is careful about coins (paragraphs 37 to 47). Bullion coins can be precious metal if they meet the fineness test, because they are priced off spot and carry an accepted mark. Proof coins are not, because part of their price reflects the finish. Numismatic and collector coins are not, because their price depends mainly on rarity and collector interest. And a coin is not automatically a bullion coin just because a seller calls it one: the test is whether it trades on its metal content.

The 22 carat point surprises many buyers. A Sovereign or Krugerrand contains real gold, but at 91.67% it is below the 99.5% line, so it is ordinary goods for GST. That is why Australian bullion buyers tend to favour 24 carat products from the Perth Mint and other refiners.

How is gold taxed when you sell?

Gold is a CGT asset. If you sell it for more than its cost base (what you paid plus incidental costs such as brokerage), you make a capital gain. Your net capital gain for the year is added to your assessable income and taxed at your marginal rate; there is no separate CGT rate. A capital loss can reduce capital gains in the same or a later year, but not your salary.

The big lever is the CGT discount. The ATO says resident individuals can reduce a gain by 50% if they owned the asset for at least 12 months, and that "you exclude the day of acquisition and the day of the CGT event" when counting. Gold bought on 10 March 2026 therefore needs to be sold no earlier than 12 March 2027 to be safe on the discount. Other points from the ATO page:

• Complying super funds, including SMSFs, get a 33.33% discount instead of 50%.
• Companies cannot use the CGT discount.
• Foreign and temporary residents cannot use the full discount for gains made after 8 May 2012.

If you buy and sell gold so often that it looks like a business, profits may be taxed as ordinary income instead, with no discount. Occasional investors holding for the long term are normally on capital account.

Is gold a collectable or an investment for CGT?

The ATO's CGT asset guidance describes collectables as items "that you use or keep mainly for the personal use or enjoyment of yourself or your associates", and its list includes jewellery and "coins or medallions". Two special rules apply to collectables:

• Any gain or loss is disregarded if you acquired the collectable for $500 or less.
• "You can only use capital losses from collectables to reduce capital gains" from collectables.

The test is the purpose: kept mainly for personal enjoyment. Bullion bars and coins bought as an investment and stored in a safe or vault are generally treated as ordinary CGT assets, so the $500 exemption does not apply and losses can offset any capital gains. A coin collection held for enjoyment is different. If you hold both, keep them separate and record why you bought each item.

Worked example: selling ten Kangaroos before and after 12 months

An illustration with round numbers, not live prices. Today's spot price is ... per ounce (Loading).

An Australian resident buys ten 1oz Kangaroo bullion coins for A$60,000 (no GST) and later sells them to a dealer for A$70,000. We assume a marginal tax rate of 32%, plus the 2% Medicare levy, for a combined 34% (an illustrative rate; yours may differ).

Assumes no other gains or losses, no selling costs and the whole gain taxed at one marginal rate.

Now swap the coins for ten 22 carat Krugerrands bought for the same A$60,000 from a GST-registered dealer. Add 10% GST and the outlay is A$66,000. If the sale also brings A$70,000, the gain shrinks to A$4,000 (A$2,000 after the discount), but the buyer has paid A$6,000 in GST up front that no one refunds. Our October 2026 Australian premium report compares what coins and bars cost to buy, and our guide to selling gold in Australia covers buyback spreads.

How is gold taxed in an SMSF?

A self-managed super fund can invest in physical gold if its trust deed and investment strategy allow it. Inside a complying fund, earnings are taxed under the super rules, and the CGT discount for assets held at least 12 months is one-third rather than one-half.

The ATO's SMSF investment restrictions set strict rules for collectables and personal use assets: they cannot be used by or leased to related parties, cannot be stored at a related party's private residence, must be insured in the fund's name within 7 days, and trustees must keep a written record of the storage decision. That page does not mention bullion specifically, so trustees should take advice on how the rules apply to their gold and keep it clearly in the fund's name, typically with a third-party vault. Our gold in an SMSF guide covers the practical steps.

What are the cash rules for buying gold?

These are anti-money laundering rules, not taxes, but they affect how you pay. AUSTRAC says that from 1 July 2026, businesses that buy or sell precious metals, stones or products in a transaction valued at $10,000 or more, paid in cash or virtual assets, provide a designated service and must comply with the AML/CTF Act. Linked transactions are added together. A regulated business that accepts physical currency of $10,000 or more must lodge a threshold transaction report. Purchases paid only by bank transfer or card are not caught by this designated service. Splitting a purchase into smaller cash amounts to avoid reporting is a criminal offence.

What records should you keep?

The ATO says "penalties can apply if you do not keep the records for at least 5 years after the relevant CGT event." For gold, that means keeping, for every item:

• The purchase invoice: date, product, fineness, quantity and price, including any GST.
• Any incidental costs, such as insurance or storage fees that form part of the cost base, and your adviser's view on them.
• The sale receipt and date.
• Proof of payment.
• For inherited gold, the value at the date of death.

If you hold gold for 20 years, the 5-year clock starts only when you sell, so keep the purchase records the whole time. For dealers, storage and live prices, start with our guide to buying gold in Australia.

Not financial advice. GoldVetted provides general information to help you compare options. It is not personal financial, tax or legal advice. Gold prices go down as well as up, and you may get back less than you pay. Check tax rules with the official source or a qualified adviser before you act.