Collectables have always had a certain allure: the thrill of the hunt, the nostalgia, and the potential for eye-popping returns. But as 2025 unfolds, more Australians are considering rare sneakers, vintage wines, sports cards, and even Pokémon as viable investments. With new tax rules and a maturing market, it’s time to examine whether collectables are a clever addition to your financial strategy—or just a hobby with hype.
Why Collectables Are Gaining Traction in 2025
The Australian collectables market is booming. According to IBISWorld, trading card and memorabilia sales grew over 18% in the past year, with Gen Z and Millennials driving demand for niche items like graded Pokémon cards, limited-edition sneakers, and pop culture memorabilia. This surge is fuelled by:
- Digital marketplaces: Platforms such as eBay, StockX, and local startups like OzCollect have made buying and selling frictionless.
- Media buzz: High-profile sales—like the $2.1 million Don Bradman bat auctioned in late 2024—have made headlines and inspired everyday Aussies to dig through their cupboards.
- Inflation hedging: With inflation hovering around 3.7% in early 2025, some investors are turning to tangible assets as a store of value.
But the growing popularity has also caught the attention of the ATO, with new rules on the tax treatment of collectables coming into effect in July 2025.
The Tax and Regulatory Landscape: What’s Changed?
Investing in collectables is no longer just a matter of buying low and selling high. The ATO’s 2025 update means:
- Capital Gains Tax (CGT): Collectables valued over $500 are now subject to CGT upon sale, closing a loophole that previously allowed some gains to go untaxed.
- SMSFs under the microscope: Self-managed super funds (SMSFs) face stricter documentation and storage rules if holding collectables. Items must be independently valued every three years and stored separately from personal use items.
- Provenance is key: Proper receipts, valuation certificates, and a paper trail are crucial. The ATO has ramped up audit activity on collectable sales, especially for crypto-purchased items.
For example, a Perth investor who sold a rare whisky bottle for $35,000 in February 2025 faced a hefty CGT bill due to improved cross-checking between online marketplaces and the ATO’s data-matching systems.
Pros, Cons, and Real-World Results
Are collectables right for you? Here’s a balanced look:
- Potential Upside: Some categories have outperformed traditional assets. For instance, the Knight Frank Luxury Investment Index reported classic cars and rare watches delivered average annual returns of 9% and 7% respectively between 2020–2024.
- Liquidity Issues: Unlike shares, selling a vintage comic or rare coin can take months—or never happen at your desired price.
- High Transaction Costs: Auction fees, insurance, and storage can eat into profits. Example: Melbourne’s Fine Art Auctions charge buyers up to 18% in fees.
- Market Volatility: Fads fade. The NFT collectable craze of 2022–23 has cooled dramatically, leaving some digital art investors with steep losses.
- Joy Factor: Collectables can provide personal satisfaction and connection—something ETFs or bank accounts rarely deliver.
It’s also worth noting that the best outcomes often go to those with specialist knowledge. Sydney-based sneakerhead Maya Tran tripled her money flipping rare Nike Dunks in 2024, but her success relied on deep market research and timing. Meanwhile, a surge in replica sports memorabilia in 2025 has caught out less-experienced buyers.
Tips for Aussies Considering Collectables in Their Portfolio
- Diversify: Don’t put all your eggs in one basket—whether it’s stamps, sneakers, or rare vinyl records.
- Do Your Homework: Research market trends, check for authenticity, and watch for new ATO announcements.
- Think Long-Term: Most collectables only deliver significant returns after 5–10 years, if at all.
- Understand Tax Obligations: Keep meticulous records and factor in CGT when calculating potential gains.
- Buy What You Love: If the market turns, at least you’ll enjoy owning your collection.
The Bottom Line
Collectables can add spice—and risk—to your financial life. While some Australians are hitting it big with rare finds, most should view collectables as a small, speculative portion of their overall portfolio. The new 2025 tax rules mean it’s more important than ever to approach this asset class with open eyes, careful record-keeping, and a genuine passion for the items you buy.
