Perth Bullion Company Liquidated

[Serendipity]

I’ve noticed the Perth Bullion Company selling original Perth Mint capsules has gone into liquidation. The Australian government probably wound them up because they are not affiliated to the official Perth Mint who don’t sell the capsules. The Australian government’s position is understandable because you can see how counterfeiters can easily acquire the original capsules and pass their fake Kookaburras off as genuine.

https://www.perthbullion.com/

[jultorsk]

A sad day indeed, Perth Bullion Company was a well loved dealer with good selection and affordable shipping rates. The issue seems to be with GST (VAT) legislation here.

Proof and collectors coins, regardless of their metal purity attract GST. In addition all bullion grade below 99.5% for gold and 99.9% for silver attract GST (meaning e.g., sovereigns are subject to 10% GST in Australia). The current working assumption (as the facts are still being gathered) is that the dealer was issued an order by the tax authority to remit GST on coins that should have been GST free per the ATO guideline. It appears as the tax authority has interpreted their own guideline so that any bullion sold for spot price + 10% is now subject to GST. https://www.ato.gov.au/law/view/document?DocID=GST/GSTR200310/NAT/ATO/00001

It is an unfolding situation, with potentially very interesting repercussions to the entire bullion industry in Australia. Save a thought for anyone with allocated and unallocated bullion holdings with this dealer.  

https://www.rsm.global/australia/sites/default/files/media/circular_dated_11_july_2019.pdf

Edit: I think it should be added that the current understanding is that this was no fault of Perth Bullion. It is not well understood how the law and tax guideline could be interpreted one way for a small bullion dealer such as PB, and then applied differently for some other (possibly larger operator, with sufficient funds to afford legal counsel).

[westminstrel]

Yikes! I had no idea

PBC was one of the only dealers I knew of in Australia with such a varied selection of coins and a functioning, up-to-date website.

I can’t think of any other Australian dealer with an equivalent online presence.

So sad 😞 

[LootGoblin]

If this is another shot against counterfeiters, we might see Perth Mint move to metric. 🤔 
If the pressure behind it is coming from China and its growing coin collectors. since i think they changed to metric to combat fakes & protect its people from dodgy sellers exploiting misunderstandings in the ounce weight. 
And we sure do have a lot of Chinese here ripe for scamming (if one was so inclined). 
  

1 hour ago, jultorsk said:

Save a thought for anyone with allocated and unallocated bullion holdings with this dealer.  

If you are an Aus resident i think its a bit foolish to use anyone other then the government backed Perth mint for bullion holdings.

[LootGoblin]

If this is another shot against counterfeiters, we might see Perth Mint move to metric. 🤔 
If the pressure behind it is coming from China and its growing coin collectors. since i think they changed to metric to combat fakes & protect its people from dodgy sellers exploiting misunderstandings in the ounce weight. 
And we sure do have a lot of Chinese here ripe for scamming (if one was so inclined). 
  

1 hour ago, jultorsk said:

Save a thought for anyone with allocated and unallocated bullion holdings with this dealer.  

If you are an Aus resident i think its a bit foolish to use anyone other then the government backed Perth mint for bullion holdings.

[jultorsk]

Update. https://www.rsm.global/australia/sites/default/files/media/second_circular_dated_19_july_201910888146.1.pdf

 

[motorbikez]

They still have a few bits on ebay ,although a lot of the more expensive stuff they had on ebay states "this listing has ended".