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GST and second-hand goods

How to calculate and report GST on sales and purchases of second-hand goods.

Last updated 24 May 2017

These instructions will help you calculate and report goods and services tax (GST) on sales and purchases of second-hand goods.

The term 'second-hand' means 'previously used' or 'not new'.

Second-hand goods do not include the following:

  • precious metal
  • goods to the extent that they consist of gold, silver, platinum or any other substance which, if it were of the required fineness, would be precious metal
  • animals or plants.

From 1 April 2017, the definition of second-hand goods was amended to clarify that goods containing gold, silver or platinum are not second-hand goods.

However, collectibles and antiques (containing precious metals) that are bought and sold as such may still qualify as second-hand goods. For example, a collector's coins may have some gold content worth $50 but are sold as collectables for $30 in the hope they may increase in value as collectables over time. 

See also:

Methods you can use to complete the relevant GST items on your activity statement.

Calculate your GST credits using the direct approach or global accounting method.

How to claim GST credits and what records you need to keep.

Understand when you need to account for GST payable.

How to account for purchases of second-hand good of $1,000 or less.

Examples of how to report sales and purchases of second-hand goods on your activity statement.