In this day and age, people take their privacy seriously especially when it comes to their wealth and investments they may decide to investment in commodities like silver and gold. When you buy gold bullion Brisbane you should find out if there are any requirements or obligations you are supposed to abide by.
In Australia, the gold bullion industry is under the mandate of AUSTRAC. This is the Australian organization that is in charge of controlling money laundering and dissuades terrorism financing. According to Australian law, bullion dealers are required to have controls and systems that comply with the Anti-money laundering act of Australia.
According to the compliance requirements, gold dealers are required to at least conduct a Know-Your-Customer to identify or verify who they are. However, there are exceptions for transactions that are below $5000.
What this means for gold bullion buyers
For one, if you are going to buy gold bullion Brisbane for under $5000 you can do so without having to provide personal identification unless your dealer insists. Anything that is not bullion is mandated by the state it is being bought and sold in. Different states have their own set of rules. In Queensland, selling gold is mandated by the Fair Trade office. This office requires gold buyers to be registered according to the 2nd hand dealer’s act. The act requires gold buyers and sellers to provide some form of identification as part of the transaction.
Tax on gold
Gold is subject to Australian tax laws. The tax value is calculated on the weight of the gold and is only applied when you make a profit from the sale of your gold. The more profit you make the more tax you will pay. This is often referred to as Capital Gains tax. When you sell gold bullion in Australia you might be liable to pay 28% tax on your gold if your gold is valued higher when you sell than when you initially bought it. You will only need to pay tax on 50% of the profit if you have held the gold for more than a year. You also need to be aware that under Australian law, no Goods and Services Tax (GST) is applied to investment grade gold products. The rules are different for when you sell gold jewellery.
Where do you declare your gold
The Australian Taxation Office is the primary tax authority of the Australian government. The organization’s role is to control, shape and enforce the tax laws in Australia. The Australian Taxation Office (ATO) collects income tax, goods and service tax (GST) and other taxes. To ensure that you are on the right side of the law always make sure to declare your income sources to ATO.
Declaring investment grade gold bullion to ATO depends how you get it and how long you have held it.
Bullion is considered as all other capital assets you purchase and hold hold it as an investment. You must declare your returns when you calculate the gains and losses you make on your return.
Gold received as gifts from friends and family is tax-exempt, so you don’t have to declare it as income in your return. You also don’t have to declare your gold if you acquire it as a hobby.