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Prospecting licence and tax offsets

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Prospecting licence and tax offsets Empty Prospecting licence and tax offsets

Post  oldog on Sun Jul 03, 2016 3:41 pm

my first post and havn't chased the yellow rock as yet,however keen to start
My understanding is that if you hold a prospectors licence and actively prospecting,all and any costs associated are tax deductible/offset against any other taxable income you have..understanding you havn't actually "found any gold"..??

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Prospecting licence and tax offsets Empty Re: Prospecting licence and tax offsets

Post  davsgold on Sun Jul 03, 2016 5:15 pm

G'day oldog

A prospectors license has nothing to do with it, there is no such thing as a prospectors license anyway. Some states in Australia have a "Miners Right" and along with this give you the right to prospect for minerals including gold.

If you want to run your prospecting as a business then it's no different to any other business, claiming costs against sales and paying GST and claiming GST on sales etc.

Besides this there is no TAX on native gold that you may find if you are still running as a "Hobbie", but if you chose to run as a business it's the same as any other, TAX on profits.

Keep in mind you can't have a full time "Hobbie" you need other income or job to have something else you class as a hobbie.

Good luck with whichever way you chose to go about it.

cheers dave
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Post  oldog on Sun Jul 03, 2016 5:39 pm

thanks Dave..
As a sole trader with flexability time wise,the combination of work and gold searching appears attractive and allways looking for the allusive cost breaks!
thanks again.

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Post  mfdes on Mon Jul 04, 2016 11:25 am

davsgold wrote:G'day oldog

A prospectors license has nothing to do with it, there is no such thing as a prospectors license anyway.  Some states in Australia have a "Miners Right" and along with this give you the right to prospect for minerals including gold.


Not correct. You might want to check your facts before making such sweeping statements: http://www.mrt.tas.gov.au/portal/prospecting-licence
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Post  mfdes on Mon Jul 04, 2016 11:28 am

oldog wrote:my first post and havn't chased the yellow rock as yet,however keen to start
My understanding is that if you hold a prospectors licence and actively prospecting,all and any costs associated are tax deductible/offset against any other taxable income you have..understanding you havn't actually "found any gold"..??

You would have to show that you're deriving at least some income from an activity (prospecting) to be able to claim expenses related to that activity from your other income. Thus is you "havn't actually found any gold", you won't be able to claim any expenses.
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Post  davsgold on Mon Jul 04, 2016 7:25 pm

mfdes wrote:
davsgold wrote:G'day oldog

A prospectors license has nothing to do with it, there is no such thing as a prospectors license anyway.  Some states in Australia have a "Miners Right" and along with this give you the right to prospect for minerals including gold.


Not correct. You might want to check your facts before making such sweeping statements: http://www.mrt.tas.gov.au/portal/prospecting-licence

G'day mfdes

I stand corrected, TASMANIA does in fact have a "Prospectors License" I guess you being from TAS would know this, and me never having detected in TAS didn't know this. Very Happy Thankyou for bringing this to my attention.

cheers dave
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Post  mfdes on Tue Jul 05, 2016 11:19 am

That's alright, we're used to being forgotten by most mainlanders and we don't always necessarily mind :-D

But I think the important point for the OP is that you have to be earning some kind of income from an activity in order to get the tax deductions from other income. If you buy a second house and don't rent it, you can't then negatively gear the mortgage payments against your income. It's only when you're earning money from renting real estate that you can claim your losses.
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