If your business involves the purchase and sale of second-hand goods, you would need to take note of this.
The ATO has issued GST 2013/2, providing the definition on the acquisition of second-hand goods for the purpose of sale in the ordinary course of business. This ruling helps you understand which Division of the GST Act to follow.
In general, businesses are allowed to apply notional input tax credits on the second-hand goods that they had purchased, despite that there is actually no input tax credits as the seller is not a GST registered individual.
GST on buying and selling second-hand goods