Published on 01 Apr 99
by WESTERN AUSTRALIAN DIVISION, THE TAX INSTITUTE
Mining as an industry gets special mention in the new GST Bill. These special provisions are restricted to the production of gold, silver, platinum and any other specified minerals. Gold, silver and platinum prices are internationally fixed. Gold dealers cannot recover GST on the supplies of gold that they make. The supplier would therefore become liable for the GST. To avoid this scenario, the Bill provides that the first supply after the precious metal is refined is "GST free" and subsequent sales are "input taxed". This all sounds very encouraging, but what in fact does it mean?
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