(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.