Income is not a precise term, and it is not defined in the legislation. It has been given substance, however, in many judicial decisions. In general, to be income, a benefit should:

Ordinary income

In the 1997 Act ‘income according to ordinary concepts’ is called ordinary income (s.65(1)).

Statutory income

Both Acts include as assessable income some items that are not income according to ordinary concepts ( see on page† ). In the 1997 Act this is called statutory income (s.65(2)).

Capital gains

Since 1985, most realised gains from increases in property values (capital gains) are included as income for tax purposes.

What is not income

Income does not include windfall gains such as lottery and betting wins, inheritances and gifts (not arising out of employment).