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Edited version of your written advice
Authorisation Number: 1051493559442
Date of advice: 12 March 2019
Ruling
Subject: Collectables
Question
Will the capital gain or loss you make when you dispose of your coins be disregarded under subsection 118-10(1) of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer
Yes. As the coins are collectables in accordance with subsection 118-10(2) of the ITAA 1997, you acquired them for less than $500 each and you keep them for personal use and enjoyment, any capital gain or loss you make will be disregarded.
This ruling applies for the following period:
Year ending 30 June 2019
The scheme commences on:
1 July 2018
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
You are an aged pensioner.
You purchased 500 Red Kangaroo 1oz Silver Australian tender coins for less than $500 each.
You purchased 30 Kangaroo 1/4oz Gold Perth Mint legal tender coins for less than $500 each.
The coins are not part of a set.
You intend to keep the coins for personal use and enjoyment and as a medium to preserve your wealth.
You are not an investor and you have declared that your coin purchases are not for investment purposes.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 118-10(1)
Income Tax Assessment Act 1997 subsection 108-10(2)