Guidelines for determining whether a payment is income

In most cases deciding whether a payment is income will be straightforward, that is the payment is money received that is not a capital payment. You must also check whether the payments are specifically included or excluded as income.

Guidelines for specific types of income can be found in:

• Types of income

In other cases where you are unsure whether a payment is income or not, consider the following guidelines:

• why was the payment made?
  • is the payment received for an income-related purpose?
  • is the payment to be used for an income-related purpose?
• is the payment received periodically?
• what is the source of the payment?
• has the client received free goods, services, transport or accommodation on a regular basis?

You need to assess the nature and circumstances of the payment and having considered all of these points, determine whether or not the payment, credit or service is income.

In some cases income can be reduced if the client has had expenses. For example:

• where the client has had expenses related to producing a product for sale
• non-taxable allowances such as:
  • attendance fees for jury service
  • a clothing allowance for Orphans Benefit, Unsupported Childs Benefit, or Residential Care Subsidy clients
  • a travel allowance