CGT on Gold and Silver in Australia: The ATO Rules Explained

When gold and silver were running hot in late 2025 and early 2026, the ATO issued a pointed warning: a large number of Australians buying precious metals believed they were tax-free. They are not.

If you sold gold or silver at a profit — or are thinking about it — Capital Gains Tax applies. The rules are straightforward once you understand them, but getting them wrong means an unexpected tax bill and potential ATO scrutiny.

Here is exactly how it works.

The Core Rule: Gold and Silver Are CGT Assets

Under Australian tax law, gold and silver — whether physical bullion, coins, or ASX-listed ETFs — are classified as CGT assets. A taxable event occurs when you dispose of the asset, which includes:

Selling physical bullion or coins
Selling units in a gold or silver ETF
Gifting gold or silver to someone else
Transferring ownership
Exchanging gold for another asset

CGT does not apply while the price is going up and you're still holding. The tax is triggered by disposal, not by unrealised gains. This means you can hold gold that has doubled in value with no tax consequence until you actually sell.

The Big Misconception the ATO Is Warning About

Many investors confuse two different rules and incorrectly conclude gold is tax-free:

Misconception 1: "Gold is a personal use asset, so it's exempt."

Personal use assets under $10,000 are CGT-exempt. But the personal use asset rule applies to assets acquired for personal enjoyment — a surfboard, a piece of art you hang in your living room. Investment-grade gold bullion bought as an investment does not qualify. Even if your holding is under $10,000, if you bought it as an investment, it is assessable.

Misconception 2: "The ATO won't find out about a private sale."

Australian bullion dealers have reporting obligations to AUSTRAC. Banks capture transaction trails. The ATO has access to financial data and runs lifestyle audits. Cash sales of gold are not invisible. If you sell gold and don't declare the gain, you are taking a meaningful compliance risk.

How to Calculate Your Capital Gain

Your capital gain is the difference between your capital proceeds (what you received when you sold) and your cost base (what you paid, plus associated costs).

Cost base includes:

The purchase price of the gold or silver
Brokerage fees (for ETF purchases)
Dealer premiums over spot price (for physical bullion)
Storage and insurance costs you have paid (for physical)
Any costs of getting valuations

Capital proceeds are:

The sale price received
Less any costs of sale (dealer spread, brokerage on ETF sale)

Example: You bought 10 troy ounces of gold at $4,500 per ounce in August 2025. Total cost: $45,000 plus $900 dealer premium = $45,900 cost base.

You sell in October 2026 for $5,200 per ounce. Total proceeds: $52,000 less $400 selling costs = $51,600 net proceeds.

Capital gain: $51,600 − $45,900 = $5,700

Use the Capital Gains Tax Calculator to work through your specific numbers.

The 50% CGT Discount

If you held the gold or silver for more than 12 months before selling, you are eligible for the 50% CGT discount (for individuals and trusts — the discount does not apply to companies).

This means only half your capital gain is added to your taxable income for the year.

Using the example above:

Capital gain: $5,700
Apply 50% discount: $2,850 is assessable
If your marginal tax rate is 34.5% (including Medicare levy): tax owed = $984

Without the 12-month discount, the full $5,700 would be assessable, resulting in tax of $1,967 — nearly double.

The practical implication: If you're approaching the 12-month mark on a gold holding, it is almost always worth waiting before selling. The tax saving is significant.

What If You Sell at a Loss?

If you sell gold or silver for less than your cost base, you have a capital loss.

Capital losses cannot be offset against ordinary income — but they can be:

Offset against capital gains in the same financial year — if you have gains elsewhere (other shares, property, etc.), a gold loss reduces those
Carried forward indefinitely — if you have no gains this year to offset, the loss carries forward to future years

If you're sitting on a loss on gold bought near the 2026 peak, selling before 30 June to crystallise the loss — and offset it against gains elsewhere — can be a legitimate tax strategy. This is called tax-loss harvesting.

ETFs vs Physical Bullion: Same Tax Treatment

The CGT rules are identical whether you're selling ASX-listed gold ETF units or physical bullion bars. Both are CGT assets, both qualify for the 12-month discount, and both require the same record keeping.

The one practical difference: with ETFs, your brokerage platform generates a contract note that gives you all the date and price information you need. With physical bullion, you're responsible for keeping your own purchase invoices.

GST on Gold and Silver

Investment-grade gold (at least 99.5% purity) is GST-free under Australian tax law. This means when you buy or sell investment-grade bullion from a registered dealer, no GST is charged or claimable.

However:

Gold coins with numismatic (collectible) value may attract GST — check with your dealer before purchasing
Gold jewellery is generally not GST-free and is subject to GST at 10%
Silver at investment grade (99.9% purity) is also GST-free

For standard investment bullion bars and coins from major Australian dealers, GST is not a concern. But if you're buying unusual products or second-hand gold, confirm the GST status first.

Gold and Silver in an SMSF: Different Tax Rates

If you hold gold inside a self-managed super fund, the tax treatment is different and generally more favourable:

Holding period	CGT rate in SMSF
Under 12 months	15% flat rate
12 months or more	10% (concessional rate, equivalent to the 15% fund rate after a one-third discount)

Compare this to an individual on a 45% marginal rate — even with the 50% CGT discount, their effective rate on a long-term gain is 22.5%. Inside an SMSF, it's 10%. For large gold holdings, this difference is significant.

In pension phase within an SMSF, gains are generally tax-free entirely — one of the strongest arguments for holding gold inside super rather than personally.

For the full SMSF rules around buying, storing, and managing gold, read Gold in Your SMSF: The Rules You Need to Know.

Upcoming Changes: CGT from 1 July 2027

Be aware that changes to CGT rules are scheduled to take effect from 1 July 2027. A minimum 30% tax rate is proposed to apply to capital gains for high-income Australian resident individuals, which would affect the effective benefit of the 50% CGT discount for those earning above certain thresholds.

If you are in a high income bracket and are planning significant gold sales, this makes the timing of those sales — before or after 1 July 2027 — a meaningful decision. Speak with a registered tax agent before acting.

Record Keeping: What You Must Keep

The ATO requires you to keep records for every CGT asset from the date of acquisition until five years after you dispose of it.

For gold and silver, keep:

When you buy:

Purchase invoice or contract note
Date of purchase
Price paid (including premium over spot)
Any associated costs (brokerage, storage, delivery)
Proof of payment

When you sell:

Sale invoice or contract note
Date of sale
Price received
Any costs of sale

For physical bullion stored in a vault:

Storage fee invoices (deductible as a cost of holding the investment)
Annual account statements from the vault or dealer

Without these records, you cannot accurately calculate your cost base — which means you may end up overstating your capital gain and paying more tax than you need to.

Common Situations and How They're Taxed

Scenario 1: Bought PMGOLD in September 2025, sold in March 2026 (6 months later) Held less than 12 months. Full gain assessable at marginal rate. No CGT discount.

Scenario 2: Bought physical gold bar in June 2025, sold in August 2026 (14 months later) Held more than 12 months. 50% CGT discount applies. Only half the gain is assessable.

Scenario 3: Bought gold at the 2026 peak, now sitting at a loss No CGT event until you sell. If you sell now, you crystallise a capital loss that can offset gains elsewhere or carry forward. This can be tax-smart if you have other gains this financial year.

Scenario 4: Received gold as a gift The cost base is generally the market value of the gold at the date it was gifted to you. CGT applies when you eventually sell, measured from that inherited cost base and the date of the gift.

Scenario 5: Gold held inside SMSF, held 18 months 10% concessional CGT rate applies. Significantly lower than personal rates.

The Bottom Line

Gold and silver are not tax-free in Australia. The ATO knows this, dealers have reporting obligations, and cash sales do not avoid scrutiny.

The good news: the rules are clear and manageable. Hold for 12 months and you halve your assessable gain. Hold inside an SMSF and the rate drops further. Keep good records from day one and the compliance burden is straightforward.

If you're thinking about selling, use the Capital Gains Tax Calculator before you act — knowing your likely tax bill is part of making a good financial decision.

This article is for general information only and does not constitute financial, tax or legal advice. Individual circumstances vary. Consult a registered tax agent or licensed financial adviser before making decisions based on this information.