Commonwealth Consolidated Acts

A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 38.255

  (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.