Commonwealth Consolidated Acts

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A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 66.40

Acquisitions of second-hand goods that can be used to offset GST on future re-supplies

             (1)  This Subdivision applies to an acquisition of * second-hand goods if:

                     (a)  you acquire the goods for the purposes of sale or exchange (but not for manufacture) in the ordinary course of * business; and

                     (b)  either the * consideration for the acquisition was more than $300 or you choose to have this section apply to the acquisition; and

                     (c)  the goods are of such a kind, or they are supplied to you in such a way, that it would be reasonable to expect you to divide them before supplying them in 2 or more separate supplies; and

                     (d)  you do not subsequently make a single supply of the entirety of the goods acquired.

             (2)  However, this Subdivision does not apply, and is taken never to have applied, to the acquisition if:

                     (a)  the * consideration for the acquisition separately itemises the consideration for the different goods acquired, and your division of the goods before supplying them:

                              (i)  corresponds to that itemisation; or

                             (ii)  does not involve dividing the goods any further than the division indicated by that itemisation; or

                     (b)  the supply of the goods to you was a * taxable supply, or was * GST-free; or

                     (c)  you * imported the goods; or

                     (d)  the supply of the goods to you was a supply by way of hire; or

                     (e)  you make a supply of the goods, or of part of the goods, that is not a taxable supply (other than because of section 66-45).



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