In Australia, investment-grade gold (99.5%+), silver (99.9%+) and platinum (99%+) in bar, wafer or coin form are not charged GST when you buy or sell them. Items that miss the purity or investment-form test, such as 22 carat coins or jewellery, usually carry 10% GST.
How the GST rules for precious metal work
The A New Tax System (Goods and Services Tax) Act 1999 defines "precious metal" as gold of at least 99.5% fineness, silver of at least 99.9% or platinum of at least 99%, in each case in an investment form. The ATO's ruling GSTR 2003/10 explains that investment form means a bar, wafer or coin that can be traded on the international bullion market, carries a mark guaranteeing its fineness and quality, and usually trades at a price set by reference to the metal's spot price.
Supplies of precious metal then follow two rules:
- First supply after refining is GST-free (section 38-385). This covers the refiner selling newly refined metal to a dealer in precious metal.
- Every later supply is input taxed (section 40-100). When a dealer sells you a bar, or you sell it back, no GST is added to the price, but the seller also cannot claim GST credits on related costs.
For a private buyer the effect is simple: a 1 kg silver bar at 99.9% or a Kangaroo gold coin at 99.99% is sold without GST.
Where GST does apply
| Item | Purity | Usual GST position |
|---|---|---|
| Perth Mint 1 oz Kangaroo gold coin | 99.99% gold | No GST (input taxed) |
| 1 kg cast silver bar | 99.9% silver | No GST (input taxed) |
| Krugerrand gold coin | 91.67% gold (22 ct) | 10% GST, below the 99.5% line |
| 18 carat gold necklace | 75% gold | 10% GST, jewellery is not precious metal |
The Krugerrand is the trap most Australians hit. It contains a full troy ounce of gold, but its alloy is only 91.67% fine, so it falls outside the definition and dealers generally add GST. On the same metal content that can make the 1 oz Krugerrand dearer than a 99.99% coin. American Gold Eagles are also 22 carat. Coloured, gilded or proof collector coins may fail the investment-form test too, so check whether the dealer's price says "GST incl.". More on that in numismatic coins and fineness.
Capital gains tax when you sell
Bullion is a CGT asset. If you sell for more than you paid, the gain goes into your tax return. Australian resident individuals who have held the asset for at least 12 months can generally reduce the capital gain by 50% under the CGT discount. Keep dealer invoices, because the cost base includes what you paid, not the spot price on the day.
Coins or medallions kept mainly for personal use or enjoyment can count as collectables. Capital losses on collectables can only be offset against gains on collectables, and a collectable bought for $500 or less is ignored for CGT. Ask a registered tax agent how your own holdings are treated.
Paying cash: AUSTRAC reporting
Bullion dealers report to AUSTRAC. A dealer must lodge a threshold transaction report for any transaction involving $10,000 or more in physical currency, and from 1 July 2026 dealers in precious metals, stones and products are covered by the expanded AML/CTF regime. Splitting a cash purchase into smaller amounts to stay under the threshold is called structuring and is a criminal offence. Expect to show ID for larger orders.
Since GST can differ between two coins with the same gold content, compare the final AUD price including delivery. Our ranking of the cheapest gold coins in Australia does exactly that, alongside the premium over spot.
Related terms
Fineness Numismatic Coins Premium Over Spot Bullion
FAQ
Do you pay GST on gold bullion in Australia?
No, gold of at least 99.5% purity in bar, wafer or coin form is input taxed, so no GST is added when you buy or sell it.
Why does my dealer charge GST on Krugerrands?
Krugerrands are 22 carat (91.67% gold), which is below the 99.5% purity needed to count as precious metal for GST, so the sale is generally taxable at 10%.
Do I pay capital gains tax when I sell gold?
Yes, a profit on bullion is a capital gain, and Australian resident individuals who held it for at least 12 months can generally apply the 50% CGT discount.
Sources
- A New Tax System (Goods and Services Tax) Act 1999, ss 38-385, 40-100 and 195-1 (Federal Register of Legislation)
- ATO, Goods and Services Tax Ruling GSTR 2003/10: What is precious metal?
- Australian Taxation Office: GST and valuable metals (precious metal definition and treatment)
- Australian Taxation Office: CGT discount
- Australian Taxation Office: Guide to capital gains tax, collectables and personal use assets
- Australian Taxation Office: Using capital losses to reduce capital gains
- AUSTRAC: Threshold transaction reports
- AUSTRAC: Precious metals, stones and products designated services