38‑255 Second‑hand goods38‑255 Second‑hand goods

38‑255 Second‑hand goods

(1) A supply of *second‑hand goods is GST‑free if: (a) the supplier is an *endorsed charity, a *gift‑deductible entity or a *government school; and (b) the goods were supplied to the endorsed charity, gift‑deductible entity or government school: (i) as a gift; or (ii) by way of a supply that was GST‑free because of a previous application of this section. However, the supply is not GST‑free if the endorsed charity, gift‑deductible entity or government school has dealt with the goods in such a way that the goods no longer have their original character. (3) Subsection (1) does not apply to a supply by a *gift‑deductible entity endorsed as a deductible gift recipient (within the meaning of the *ITAA 1997) under section 30‑120 of the ITAA 1997, unless: (a) the supplier is: (i) an *endorsed charity; or (ii) a *government school; or (iii) a fund, authority or institution of a kind referred to in paragraph 30‑125(1)(b) of the ITAA 1997; or (b) each purpose to which the supply relates is a *gift‑deductible purpose of the supplier.

Note: This subsection denies GST‑free status under this section to supplies by certain (but not all) gift‑deductible entities that are only endorsed for the operation of a fund, authority or institution. However, supplies can be GST‑free under this section if they relate to the principal purpose of the fund, authority or institution.