Gold is the asset most likely to take an Australian household over nisab, and the hardest to value. This covers how to convert 24k, 22k, 18k and 9k into a single Australian dollar figure, and whether jewellery you wear every day is Zakatable.

Zakat on gold is 2.5 per cent of what your gold is worth, once every piece is converted to its pure gold content. Jewellery, bullion and coins are valued the same way. Karat decides how much of each piece actually counts.

Key takeaways

·       Zakat is assessed on the pure gold in a piece, so 100 grams of 22k counts as 91.6 grams of gold rather than 100.

·       A mixed collection has to be converted karat by karat before anything is added up, because each karat carries a different amount of gold.

·       Bullion bars, coins and investment gold are Zakatable in full on all rulings, and they are valued on metal content rather than collector premium.

·       Jewellery is where scholars differ, with most counting it in full and a minority exempting pieces in regular personal use.

·       Gold trades in US dollars, so the Australian figure moves with both the metal price and the exchange rate.

·       Once you have a total weight in grams, the Zakat calculator applies the current price and works out the 2.5 per cent.

How Zakat on gold is calculated in Australia

Four steps, in order. First, weigh each piece by karat. Second, convert each weight to its pure gold content. After that, value the combined pure gold at the current price per gram in Australian dollars. Finally, compare your total wealth against nisab, and if you are above it, Zakat is 2.5 per cent.

The conversion step is the one people skip. Karat measures purity rather than quality, and one karat means one part gold in twenty-four, so 24k is close to pure while 9k is barely more than a third gold by weight. The Perth Mint sets this out plainly in its explanation of gold purity and karat.

Here is what each karat is worth per gram, using the gold price of A$195.72 a gram published on the Zakat calculator as at 11 September 2026, which is about A$6,088 an ounce.

Karat	Purity	Pure gold in 100 grams	Value per gram (AUD)
24k	99.9%	99.9 grams	About A$195.52
22k	91.6%	91.6 grams	About A$179.28
21k	87.5%	87.5 grams	About A$171.26
18k	75.0%	75.0 grams	About A$146.79
14k	58.3%	58.3 grams	About A$114.10
9k	37.5%	37.5 grams	About A$73.40

Treat that as a snapshot. Gold is quoted against the US dollar through the benchmark set in the LBMA precious metal prices, while the currency side is published daily by the Reserve Bank of Australia. Both move constantly, so use the rate shown on the calculator on the day you work, or check the live Australian metal prices rather than carrying last year's number forward.

How to value a mixed collection of 22k, 18k and 9k

Convert each karat separately, then add the pure gold together. Say a household holds 25 grams each of 22k, 18k and 9k. That is 75 grams on the scale, but nothing like 75 grams of gold.

·       25 grams of 22k gives 22.90 grams of gold

·       25 grams of 18k gives 18.75 grams

·       25 grams of 9k gives 9.38 grams

·       Total pure gold: about 51.03 grams

At A$195.72 a gram, that collection is worth about A$9,987, and Zakat at 2.5 per cent comes to roughly A$250. Valuing the raw 75 grams instead would have overstated it by nearly A$4,700, so the conversion matters.

A single-karat holding is simpler. For anyone asking how much Zakat is owed on 100 grams of 22k gold in Australia, the answer at that price is about A$448, because 100 grams of 22k holds 91.6 grams of gold and is worth roughly A$17,928.

Do you pay Zakat on gold jewellery you wear every day?

Most scholars say yes. Gold is treated as gold regardless of what it has been made into, so the majority position counts jewellery in full whether it sits in a drawer or is worn daily. A minority position exempts pieces in regular, permissible personal use, on the reasoning that they function as clothing rather than stored wealth.

Both positions are long established, so the practical step is to follow the ruling of the school you follow and ask someone qualified if you are unsure. Two points hold either way. Jewellery kept for investment, resale or storage is Zakatable on every ruling, including under the minority view, and quantity matters in some rulings, where a holding well beyond normal personal use is treated as stored wealth even if it is occasionally worn. If you are undecided, counting the jewellery is the cautious course, and it gives you the more useful figure anyway, since the same total tells you whether you have reached nisab at all.

Bullion, coins and gold held as an investment

There is no disagreement here. Bullion bars, minted coins and any gold bought to hold value are Zakatable in full, and they are valued on metal content at the current market price rather than on what a dealer charges for them. Coins raise one extra question, because a collectable coin can sell for well above its gold content. Most rulings still assess the gold, so where a piece carries a large premium it is worth asking someone qualified rather than estimating.

What you hold	Zakatable?	How it is valued
Bullion bars and minted bars	Yes, on all rulings	Weight multiplied by purity, at the current price
Investment coins such as sovereigns	Yes, on all rulings	Gold content rather than collector premium
Jewellery stored, inherited or kept for resale	Yes, on all rulings	Weight multiplied by purity, stones excluded
Jewellery in regular personal use	Yes on most rulings, exempt on a minority view	Same method, if counted
Allocated gold you own in storage	Yes, where the metal is yours	Current market value of your holding
Gold-plated or gold-filled items	Only the actual gold content	Usually negligible, and often not worth counting

Stones, plating and pieces you can't identify

Deduct what isn't gold before you calculate. Diamonds and gemstones set into a piece are not Zakatable in themselves on most rulings, so their weight comes off the gross weight. Clasps, backing and non-gold alloys are already handled by the karat conversion, which is why weighing by karat does most of the work for you. Unmarked pieces are common, particularly with inherited jewellery, and a jeweller can test purity and give you a weight in minutes. That beats guessing, and it leaves you with a figure you can reuse next year.

Checking your total against nisab

Gold is often what takes an Australian household over the threshold, so the nisab comparison decides whether anything is owed. The gold nisab is measured as 87.48 grams of gold, and AusRelief publishes it at A$12,605 as at 11 September 2026. The silver nisab is measured as 612.36 grams of silver, and it is far lower at A$982.

That gap changes outcomes. The mixed collection above, at about A$9,987, sits below the gold nisab and well above the silver one. Most scholars and Zakat bodies recommend the silver standard, because the lower threshold means more people give and more eligible recipients benefit, and our companion piece on the gold and silver nisab thresholds in Australian dollars covers that choice in full.

Gold also sits alongside everything else you hold, since cash, shares, business stock and money lent out count towards the same total. So the Zakat calculator takes a gold weight in grams, applies the current price, and adds it to the rest. Convert your mixed karats to one pure gold figure first, and the calculator handles the arithmetic from there.

Where your Zakat on gold goes

Zakat has eight categories of eligible recipients set out in the Qur'an, and it can only be directed to those categories. AusRelief keeps Zakat funds separate for that reason. In practice that covers food aid for households facing sustained shortages, support for orphans and the families caring for them, clean water and sanitation, education where school costs are the barrier, restoring health and disability care, and emergency appeals including Palestine and Lebanon. Eligibility applies here in Australia too, so the grocery drive programme, women and family support and crisis and emergency support reach households under financial pressure locally. The full set of work sits on the projects page, and more on how the organisation operates is on the who we are page.

On accountability, registered charities lodge an annual information statement with the ACNC and the Charity Register is public and free to search, while sector standards sit in the ACFID Code of Conduct. AusRelief also publishes its own annual report. Zakat itself is a religious obligation rather than a tax matter, though many contributions to Australian charities are deductible, and the ATO sets out the conditions for gifts and donations.

What steady support makes possible

Zakat arrives once a year for most people, and that shapes what can be planned. Communities set the priorities and AusRelief works to them, but a water survey, a school year or a food distribution schedule all need commitments that hold beyond a single season. So Zakat covers the obligation, while steady giving through a recurring donation or a one-off quick donation keeps the work moving between Zakat cycles. Some supporters start a fundraising campaign or volunteer their time instead. When people give together, the impact grows, supporting more families more consistently.

Frequently asked questions

Do I pay Zakat on gold jewellery I wear?

Most scholars say yes, because gold is treated as gold regardless of what it has been made into. A minority position exempts jewellery in regular personal use, treating it as clothing rather than stored wealth. Jewellery held for investment, resale or storage is Zakatable on every ruling. Follow the ruling of the school you follow, and ask someone qualified if you are unsure.

How do I calculate Zakat on 22 karat gold?

Multiply the weight by 0.916, because 22k gold is 91.6 per cent pure. That gives you the pure gold content. Value that at the current price per gram in Australian dollars, then apply 2.5 per cent. So 50 grams of 22k holds 45.8 grams of gold, and at A$195.72 a gram that is roughly A$8,964.

How much Zakat do I owe on 100 grams of 22k gold in Australia?

About A$448 at a gold price of A$195.72 a gram, the rate published on the AusRelief Zakat calculator as at 11 September 2026. The working is straightforward: 100 grams of 22k holds 91.6 grams of gold, worth roughly A$17,928, and Zakat is 2.5 per cent of that. The figure moves with the gold price, so recalculate on your own Zakat date.

How do I handle a collection with several different karats?

Convert each karat separately before adding anything together. Weigh the 22k, 18k and 9k pieces as separate groups, multiply each by its purity, then add the pure gold weights into one figure. Adding the raw weights together overstates the value considerably, because a gram of 9k holds less than half the gold of a gram of 22k.

Is Zakat payable on gold bullion and coins?

Yes, on all rulings, because bullion and coins are held as stored wealth rather than as personal use items. They are valued on metal content at the current market price rather than on any collector premium. Where a coin sells well above its gold value, or where it forms part of a collection, it is worth asking someone qualified.

Does the gold price used for Zakat change during the year?

Yes, and often by a wide margin. Gold trades in US dollars on international markets, so the Australian figure moves with both the metal price and the exchange rate. Use the price on your own Zakat date rather than an average or a figure from a previous year, and check it fresh each time you calculate.

Want to work out what your gold means for Zakat this year?

Use the Zakat calculator at ausrelief.org to check the current threshold and see which projects your Zakat can support.