Do you pay tax on gold you find in Australia?

Many new prospectors wonder whether the gold they dig up is taxable. 

 

Here’s the breakdown:

If you’re out detecting or panning as a hobby, the gold you find is considered a windfall gain. Hobby finds are not taxed, even if you sell them.

 

The key is that you’re not running it as a business.

If you’re doing it as a business or commercial operation, the rules change.

Gold finds and sales are treated as income.

You’ll need to declare it to the ATO.

Prospecting-related expenses may be deductible.

 

If you’re holding gold bullion or coins as an investment, different laws apply.

These are subject to Capital Gains Tax (CGT) when sold at a profit.

Holding them for more than 12 months can qualify for a 50% CGT discount.

 

From a legal perspective, in Victoria and most states:

With a valid Miner’s Right, you are entitled to keep what you find on Crown land. As long as it’s not a commercial-scale operation, you’re in the clear.

 

✅ In short: Hobbyists get to keep their finds tax-free, but commercial prospectors and investors do fall under normal tax rules.