Is Silver GST-Free in Australia? What Qualifies and What Doesn't

The Short Answer: No GST on Investment Silver

Investment-grade silver is GST-free in Australia, just like investment gold. When you buy a 1kg cast bar or a 1oz Silver Kangaroo from an Australian dealer, no GST is charged on the silver.

Many buyers expect the opposite, because the claim that silver attracts 10 percent GST is widely repeated. Part of the confusion comes from overseas. In the United Kingdom and across the European Union, investment gold is exempt from VAT but silver bullion is not. Australia's GST law works differently: it treats gold, silver and platinum the same way, each with its own minimum purity.

GST can still appear on a silver purchase. It applies to proof and collectable coins, to jewellery, to silver below the purity threshold, and usually to delivery charges. The rest of this guide explains where the line sits.

What Counts as Investment Silver

The rules are in A New Tax System (Goods and Services Tax) Act 1999. Section 195-1 defines a precious metal as gold of at least 99.5 percent fineness, silver of at least 99.9 percent fineness or platinum of at least 99 percent fineness, in each case in an investment form. Silver has to pass two tests.

• Purity: at least 99.9 percent (0.999 fine). Most modern bullion products meet this, including the Perth Mint Kangaroo and Kookaburra (99.99 percent), the Canadian Maple Leaf (99.99 percent), the Austrian Philharmonic and American Eagle (both 99.9 percent), and standard cast and minted bars from recognised refiners.

• Investment form: a bar, wafer or coin that is marked with its weight and fineness, usually by the refiner or mint, and that is bought and sold for its metal content rather than as a collectable.

How the law gets to no GST depends on who is selling. The first sale after refining, from the refiner to a dealer, is GST-free under section 38-385. Every later sale of the same metal, including a dealer's sale to you, is input taxed under section 40-100. Input taxed means the seller does not charge GST on the sale and cannot claim GST credits on the costs of making it. For you as the buyer the effect is the same: there is no GST in the price.

The ATO sets out how it applies these rules in GST Ruling GSTR 2003/10.

When GST Does Apply to Silver

GST is charged at 10 percent on silver that falls outside the precious metal definition, and on the services that often come with a purchase. The common cases are:

• Proof and collectable coins: coins sold for their design, finish, low mintage or presentation rather than their metal content generally attract GST, even when they are 99.9 percent pure. That includes proof, coloured and gilded issues and boxed collector sets.

• Jewellery and silverware: these are not in an investment form, whatever their purity.

• Lower-purity silver: sterling silver (92.5 percent), pre-decimal Australian coins (92.5 or 50 percent silver), the 1966 round 50 cent coin (80 percent), United States dimes, quarters and half dollars minted before 1965 (90 percent) and Silver Britannias struck before 2013 (95.8 percent) are all below the 99.9 percent threshold.

• Delivery, insurance and storage: these are services, and dealers usually charge GST on them even when the silver itself is GST-free.

The simplest check is your tax invoice. A dealer should show GST for any taxable items. If a bullion product you expected to be GST-free shows GST, ask the dealer why before you pay.

GST When You Sell Silver

Selling investment-grade silver does not involve GST either. When a private individual sells silver bars or bullion coins to a dealer, the buyback price quoted is the amount you receive, with no GST added or deducted. Private investors selling their own bullion do not charge GST.

The result is the same if a GST-registered business sells. A sale of silver that meets the precious metal definition is input taxed, so no GST is charged on it.

Capital gains tax is a separate question. Silver bullion is a CGT asset, and your cost base is generally what you paid, including the dealer premium and incidental costs of buying it. If you bought a collectable or lower-purity item and paid GST you could not claim back, that GST forms part of its cost base. Our CGT changes article explains how the 2026 Budget changes affect gains on precious metals.

To compare current buyback prices from Australian dealers, visit our sell silver coins page.

Silver in an SMSF: Does GST Apply?

The GST rules do not change when the buyer is a self-managed super fund. An SMSF buying investment-grade silver pays no GST, whether or not the fund is registered for GST, because the dealer does not charge GST on the sale.

As no GST is charged, there are no GST credits to claim on the silver itself. GST can still apply to the costs around it, such as vault storage and insured delivery. Whether a fund can claim any of that back depends on its registration and activities, so check with the fund's accountant.

The practical rules for holding silver in an SMSF are the same as for gold. The purchase must fit the fund's investment strategy, the metal must be owned by the fund and kept separate from members' personal assets, and records must be kept for the auditor. Our SMSF gold investing guide covers storage, record keeping and tax in more detail, and the same principles apply to silver.

Key Takeaways for Silver Buyers

• Investment-grade silver, meaning 99.9 percent pure or better in bar or bullion coin form, is GST-free in Australia, just like investment gold at 99.5 percent or better.

• GST applies to proof and collectable coins, jewellery, lower-purity silver, and usually to delivery and storage charges.

• There is no GST when you sell investment silver, and none to recover.

• With GST out of the picture, the costs that separate one purchase from another are the premium over spot, the gap between buy and buyback prices, delivery and storage. Silver premiums are higher than gold premiums in percentage terms, particularly on 1oz coins, so comparing dealers matters.

Compare current silver prices from leading Australian dealers on our silver coins page and silver bars page. For the rules on gold, see Is Gold GST-Free in Australia?

Sources and Further Reading

A New Tax System (Goods and Services Tax) Act 1999, section 195-1 (definition of precious metal), section 38-385 (first supply of precious metal after refining) and section 40-100 (later supplies of precious metal): legislation.gov.au

Australian Taxation Office, GST Ruling GSTR 2003/10 on supplies of precious metals: ato.gov.au

GoldSilverPrices.com.au: Is Gold GST-Free in Australia?

This article is general information, not tax advice. If you are buying through a business, trust or SMSF, confirm your position with a registered tax agent.