Financial advice, GST, tax.. gold related

[Luke]

Hi.
Any full-time prospectors here dealing with GST, respective how to avoid paying it?
This gold game and selling gold is very specific subject and when I asked a financial adviser he didn't really gave me clear answers.
Do you guys know someone who could give me answers which I need to find out before end of this financial year? (Preferably PM, as this is kinda ATO sensitiv subject)

Thank you

 

[RM Outback]

Ask the ATO for some advice and details, as for the financial adviser steer clear of them. I'd like to have your problem :Y: unfortunately I don't apart from knowing if you are wanting to sell gold you bought you will have to claim it just as if you would a car.

 

[Luke]

You saying if I sell my old car I have to claim it at the end of financial year as income as well?

 

[Goldtarget]

I read recently if you are a gold Buyer you have gst obligations, but as a seller no gst obligations or payable to you.

However as a "full time" prospector I doubt you can avoid it. Best to speak to a registered tax agent (accountant) as the ato will show leniency even if you are given incorrect advice.

If this is your first year the conversations your tax agent has with the ato and your dealings with the ato will be very straight forward, they wont nail you out of the gate unless you deliberately and knowingly try to avoid your obligations.

Any advice outside a registered agent wont be of any help legally speaking, here, google, the net, you need to be guided by a professional with expertise here.

 

[RM Outback]

Yep any derived income over and above recorded income is taxable unless otherwise deemed non taxable is how my accountant tells me, I earn income from multiple sources. I don't know the complexity of the whole system that's what I pay the accountant to look after. In reality I don't know of anyone who has let the ATO know about selling a vehicle.

 

[Goldtarget]

Yeah Luke is asking a complicated question and the vast majority of prospectors wont ever need to figure it out.

And you're spot on RM, best to seek advice when things arise.

Im reluctant to ask Luke any further questions as his situation seems unique. I suspect this is why an advisor was little help and the main reason he will need the help of a tax agent, it is a complex system.

After running a Pty Ltd company and now currently a sole trader I have a grasp on many areas and obligations but I am in no position to even give guidance to Luke.

The one lesson Ive learnt is a proper tax agent is without question the best placed person to provide clear and proper guidance at a (usually) very reasonable charge. It also provides an extra layer of protection when dealing with the ATO that is not afforded to individuals without one.

At a stretch although the question was asked oddly I dont believe you can avoid GST, however if the turn over under an ABN sole trader is low enough in the intial year you dont have to register for GST. (Possibly subsequent years too depending on turnover)

But this may not be the question and Im not sure of complete details of Lukes arrangements so its not really possible to answer.

 

[bungholejack]

https://www.ato.gov.au/forms/statement-by-a-supplier-not-quoting-an-abn/

Good info for the hobbyist prospectors

 

[Ben Digo]

Hi.
Any full-time prospectors here dealing with GST, respective how to avoid paying it?
This gold game and selling gold is very specific subject and when I asked a financial adviser he didn't really gave me clear answers.
Do you guys know someone who could give me answers which I need to find out before end of this financial year? (Preferably PM, as this is kinda ATO sensitiv subject)

Thank you

My understanding is that if you are deriving income from prospecting as a "hobby" then tax is not applicable. Provided that you are not claiming any expenses as tax deductible, then you should be in the clear. I met a full timer who has a lease, detecting equipment and heavy machinery to dig up his lease site and claims none of his costs. He pays no tax then on his income. Interestingly, I just googled that very point and web sites seem to agree tax is payable on hobby income, no wonder it's hard to get a straight answer. Best to go to a tax agent or accountant for clear advice I would say.

 

[Stingray]

I have an prospecting related ABN and I am also registered for GST.

Obviously I pay tax on the profit component of what I sell, just like any other business, but that is not what you asked about.

In terms of GST, I sell to the mint, and what I sell is pure gold. That is, they refine the buttons I provide to them and they pay me for the pure gold (and silver) component. That is what they buy and there is no GST on pure precious metals. GST is payable on the refining costs because it is a service.

Hope this helps

 

[goldwright]

If you sell more than $75000 a year you have to register for GST, thats turn over not profit.