A New Tax System (Goods and Services Tax) Act 1999

Chapter 4 - The special rules  

Part 4-2 - Special rules mainly about supplies and acquisitions  


The special rules in this Part mainly modify the operation of Part 2-2 , but they may affect other Parts of Chapter 2 in minor ways.

Division 66 - Second-hand goods  

Subdivision 66-A - Input tax credits for acquiring second-hand goods  

66-5   Creditable acquisitions of second-hand goods  


If you acquire * second-hand goods for the purposes of sale or exchange (but not for manufacture) in the ordinary course of * business , the fact that the supply of the goods to you is not a * taxable supply does not stop the acquisition being a * creditable acquisition .

However, this section does not apply, and is taken never to have applied, to the acquisition if:

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

(b) you * imported the goods; or

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

(d) Subdivision 66-B applies to the acquisition; or

(e) you make a supply of the goods that is not a taxable supply.

This section has effect despite section 11-5 (which is about what is a creditable acquisition).

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