tax and gold

[HeadsUp]

Can anyone here advise what the tax situation is with hobbyist prospecting?

are we supposed to declare any finds as taxable income or is it tax free below a particular threshold? .

 

[Nugget]

Investment grade precious metals (bullion etc) over a certain purity are not subjected to GST BUT are subjected to CGT (Capital Gains Tax). The taxable amount can vary based on how long you have held the asset for. Collector or Numismatic coins (Gold, Silver or whatever) are subjected to GST but I don't think they are subjected to CGT??

I couldn't really tell you what applies to Gold nuggets either found or purchased, but I'd say the tax rules would be different for each. I think your best bet is to check with your accountant to be sure.

 

[backcreek]

Hi Headsup,

I think you will find that any money made from fossicing is tax free.

Cheers
Mick

 

[HeadsUp]

I was reluctant to ask my accountant in case he invoiced me for the advice , HOWEVER . lol

I asked and he said it is not taxable unless youre in the business of gold mining or prospecting , regardless of how much you find.

thats only one accountants opinion but i would like to get it in writing from the ATO website in case anyone has access to where that legislation is , just hope the Gillard crowd dont find out its tax free or they might whack a levy , stamp duty , carbon tariff , sales tax , import tariff , fringe benefits tax and GST on it .

 

[Ditherer and Son]

.... just hope the Gillard crowd dont find out its tax free or they might whack a levy , stamp duty , carbon tariff , sales tax , import tariff , fringe benefits tax and GST on it .

Thanks to JG, we as a nation already owe the rest of the world too much of the gold that we have yet to dig up.

The treasure of our land will have to come from somewhere to get us out of this hole. Not an inspirational Swan-dive/guess at a 'whole of government' approach to incompetence.

Clive Palmer has more dollars than sense, he now wants to be PM. Clive Palmer must be standing for increasing Miner's Rights....surely?..... I am not sure how to quite understand that sentence, mind you I am not sure how to understand a Clive Palmer....[thinks... is that a tax increase or a benefit to prospectors rights?? suitably ambiguous from a wannabe billionaire/politician.]

At least with Abbott's lot they dig themselves a new hole regularly, and apart from a regular bout of foot-in-mouth disease, things can't get much worse?....surely?


Can they?



Perhaps I better start reading up some old trove articles on recipes for 'feeding a family of 4 on rabbit stew + 81 ways to cook potato' and 'interior decor for tin shacks beside a railway line'.

 

[Pete]

I was told by my accountant that if you dont go over $70,000 in any financial year on what you sell the tax office will leave you alone and call it a hobby. They're welcome to come and work out how much I spend on detectors, coils, batteries, fuel etc. etc. They'd owe me money! Cheers Pete

 

[xxREECExx]

I believe you're 100% correct there Pete, you'll be left alone if you stay under that $70,000 mark each year

 

[garnethawkins]

Wow 70 grand a year tax free? That's more then i made a year when i was able to work full time!

 

[headbut]

Ive found the 7 , just need the

 

[Gail]

Classed as a hobby tax free. As for limit that I didnt know 70,000 thanks.

 

[the duck]

does anyone want the 5 cent coin i found last june it puts me over the limit ( I wish)
id be lucky to get 50 a month less car parking, fuel, batteries, brasso, tumbling medium, electricity, man hours, research time, picks, knives,Shovels,new coils,pinpointers, goldpans, sluices, etc etc

What i do get is exercise fresh air a longer life and good friends so therefore priceless

 

[TenOunce Tone]

Agree with you there Duck, the good memories and thrill of the chase are payment enough at this point in my prospecting adventures.. If and when I find enough to sell and actually make some profit, I will let you all know..

Keep swinging and shoveling guys

Cheers, Tone

 

[Greglz86]

I read somewhere that whatever you find in NSW is yours. As long as you do it lawfully. But what happens if you dig in places your not meant to be and strike it big. I know you can get fined for being in a NP. But appart from the fine can they confiscate what you dig up? Same thing if you don't have permission to be on someone's land.

Greg

 

[Greglz86]

Not that I plan on doing either. Just thought I'd better ad that.

Greg

 

[Guest]

I read somewhere that whatever you find in NSW is yours. As long as you do it lawfully. But what happens if you dig in places your not meant to be and strike it big. I know you can get fined for being in a NP. But appart from the fine can they confiscate what you dig up? Same thing if you don't have permission to be on someone's land.

Greg

I would keep any big find locations under ya hat

Yep that's right - if you don't have permission the landholder, EL (Exploration Licence) holder etc. could make moves to get back any finds you make on the land (although it would need to be a good find I'd reckon). Probably best to get permission in writing if you don't know the landholder well.

As far as EL holder permission: My opinion is this rule is shite - they hold them over vast expanses of land & carry out exploration activities in small areas of them. Most won't even respond to any request to fossick or if they do say no . I have only ever had one company say yes. I now choose to "fly under the radar" of that rule i.e. if its publicly accessible land or I have a landholders permission I feel the mining company will soon let me know if they don't want me there. Under current NSW guidelines you are more than likely unlawfully fossicking in most areas you go to unless its been designated a fossicking area or reserve for public recreation (still need permission if held under a Trust for these too). EL holder's even have the rights on Common land too. It stinks!!! Most area in NSW is covered by EL's & in particular a high percentage of areas attractive to us fossicker's.

 

[Heatho]

Here's how to beat the big guys at their own game, this guy is a member of an audio foum I am on. Big big mining company let it's lease lapse and........ the little guy lodged a new one before the big guy. Interesting story.

Well sort of beat, this is still going in the courts since 2005.

http://www.smh.com.au/news/Business...re-row-heats-up/2005/10/12/1128796559470.html

 

[echidnadigger]

This is how I understand the tax implications regarding gold finds while hobby prospecting: They are tax free.
There is a couple of pit falls if you don't get your ducks in a row.
You must have the appropriate miners right or permit, to allow you to recover natural gold, or the gold become the property of the crown.
(I believe only hand tools can be used to recover the gold. not sure on this one though.)
If you want two swipes at the cherry by claiming your expenses from recovering the gold then this operation will be deemed an enterprise and subject to tax.
The long and the short of it is that gold recovered via the correct methods under the guise of hobby prospecting is tax FREE. Yes even the big one.
PS. I know this is true in the case of Victoria, but I would suggest you look into the act that might apply in the state you find the gold.
Do not think you can claim that your gold was found in another state to avoid any possible issues, as gold can be traced back to its origins.

 

[HeadsUp]

Here's how to beat the big guys at their own game, this guy is a member of an audio foum I am on. Big big mining company let it's lease lapse and........ the little guy lodged a new one before the big guy. Interesting story.

Well sort of beat, this is still going in the courts since 2005.

http://www.smh.com.au/news/Business...re-row-heats-up/2005/10/12/1128796559470.html

beautiful

love it

and its not the first time by the way , it happens all the time


stuff em . RIO didnt do anything with it for 20 years so good luck to the little guy.