<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>It was one of the biggest financial trends of 2025 and it doesn't appear to be changing in 2026: investors worldwide buying up </span><a href="https://www.9news.com.au/gold" rel="" target="_blank" title="gold"><span>gold</span></a><span> and silver as a hedge against growing economic instability.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>But it can come back to bite you at tax time.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>H&amp;R Block Australia director of tax communications Mark Chapman said precious metals had a "special place" in Australian portfolios, but were also among the most commonly misunderstood assets from a tax perspective.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>EPSTEIN FILES:</span></strong><span> </span><a href="https://www.9news.com.au/world/trump-told-police-in-mid-2000s-everyone-has-known-about-epsteins-misconduct/bac5dfc1-d0d4-4c62-9504-86d8bc92e0b8" target="_blank"><strong><span>Trump's bombshell claims about Epstein in mid-2000s revealed</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Many investors assume gold and silver are taxed like shares, or that physical bullion is 'private' and therefore outside the ATO's (Australian Taxation Office's) line of sight," Chapman said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Others believe that because these assets do not produce income such as dividends or rent, they must be treated differently."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>However, he said, the reality was that gold and silver sat squarely within Australia's capital gains tax (CGT) framework.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/gold-silver-purchases-can-cause-trouble-at-tax-time/fd653739-2364-4711-9f62-1a93490b9f60" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/wa-man-jailed-over-evil-plan-to-kidnap-and-abuse-young-girl-inside-his-home/3cc73e83-c59f-4e9a-9411-ff783bb55726" target="_blank"><strong><span>WA man jailed after building 'panic room' to hide kidnapped girl</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>And the tax outcome can vary depending on what is purchased, why it is purchased, and how it is held.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>CGT assets include physical bullion bars, bullion coins, allocated and unallocated bullion accounts, gold and silver exchange-traded funds (ETFs) and shares in precious metal funds.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Chapman said if gold or silver was bought as an investment and later sold for more than its cost, the profit will usually be subject to capital gains tax.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>OLYMPICS:</span></strong><span> </span><a href="https://www.nine.com.au/sport/olympics/milano-cortina-2026-cam-bolton-neck-injury-misaki-vaughan-concussion-20260211-p5o17w.html" target="_blank"><strong><span>Aussie snowboarding star breaks neck in 'serious' training crash</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"H&amp;R Block sees a common misconception among investors that holding bullion privately removes tax exposure," he said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"In practice, tax applies regardless of whether the ATO is immediately aware of a transaction.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"CGT is triggered when the asset is disposed of, including when bullion is sold, gifted, exchanged, or transferred to another entity. Record keeping is critical, as investors who cannot substantiate their cost base often end up paying more tax than necessary."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>WATCH:</span></strong><span> </span><a href="https://www.9news.com.au/world/nancy-guthrie-kidnapping-pictures-of-suspect-released-fbi-us/bf45a55f-6e64-4d61-be29-83155b0f47d3" target="_blank"><strong><span>Chilling images of man on doorstep of US TV anchor's missing mum</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Some gold and silver coins may also fall under the collectables rules, particularly where they have numismatic or collector value.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Chapman cautioned that losses on collectables can generally only be offset against gains from other collectables, limiting their usefulness compared to other investment losses.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"While there are personal use asset exemptions under the tax law, H&amp;R Block notes that investment gold and silver will usually not qualify. Where the asset has been acquired as a store of value or for investment purposes, it is unlikely to be considered a personal use asset," Chapman said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/celine-cremer-missing-backpacker-tasmania-search-recovers-car-key-bones-teeth/50f045c1-c7cf-4f14-97ae-f029ee3da945" target="_blank"><strong><span>Grisly discovery in search for missing backpacker in Tasmanian bush</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"For individual investors and trusts, the 50 per cent CGT discount can be a key tax advantage where gold or silver is held for more than 12 months. Companies, however, are not eligible for the discount."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Another important consideration he flagged was the distinction between an investor and a trader.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Where there is frequent buying and selling with a clear profit-making intent, gains may be treated as ordinary income rather than capital gains, removing access to the CGT discount and changing the overall tax outcome.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Gold exposure through ETFs and pooled products is generally taxed under normal CGT rules, but outcomes can differ depending on the legal structure of the product," Chapman said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"H&amp;R Block recommends investors carefully review product disclosure statements and annual tax statements before assuming the tax treatment."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>For self-managed super funds (SMFs), additional compliance considerations apply, including storage, documentation, valuation, and investment strategy alignment.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>While Chapman said CGT still applies within super, the effective tax rate may be lower for assets held longer than 12 months, but ATO scrutiny in this area remains high.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Gold and silver may feel like simple investments, but as H&amp;R Block often sees in practice, the tax treatment can be complex," Chapman said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"The focus should not be on trying to avoid tax, but on structuring investments correctly and maintaining records so the right amount of tax is paid – and not more."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><em><span>NEVER MISS A STORY:</span></em></strong><span> </span><em><span>Get your breaking news and exclusive stories first by following us across all platforms.</span></em></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><ul><li><strong><em><span>Download the 9NEWS App here via</span></em></strong><span> </span><a href="https://apps.apple.com/au/app/9news/id1010533727" target="_blank"><strong><em><span>Apple</span></em></strong></a><span> </span><strong><em><span>and</span></em></strong><span> </span><a href="https://play.google.com/store/apps/details?id=nineNewsAlerts.nine.com&amp;hl=en_AU&amp;pli=1" target="_blank"><strong><em><span>Google Play</span></em></strong></a></li><li><strong><em><span>Make 9News your preferred source on Google by</span></em></strong><span> </span><a href="https://9.nine.com.au/8x987w" target="_blank"><strong><em><span>ticking this box here</span></em></strong></a></li><li><strong><em><span>Sign up to</span></em></strong><span> </span><a href="https://login.nine.com.au/edm?client_id=nineatnine" target="_blank"><strong><em><span>our breaking newsletter here</span></em></strong></a></li></ul></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><em><span>The information provided on this website is general in nature only and does not constitute personal financial advice. 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