1.1.V.25 Valuable consideration

Usage

This definition applies to all payments.

Definition

Valuable consideration is defined as receipts not in monetary form but capable of being valued in monetary terms. This occurs when a person receives goods, services or some other benefit in exchange for some item, action or promise.

Explanation: If goods or services are provided, their value is maintained as the amount a person would have to pay another to purchase the particular item, or would have received to provide the service. To be applied, the goods or services provided have to have a clear monetary value.

Example: A person does some garden maintenance to earn income. The person is given a book of 10 movie ticket vouchers instead of a cash payment. The vouchers' purchase value is assessed as income.

Act reference: SSAct section 8(1)-'income amount'

Policy reference: SS Guide 4.3 Ordinary Income

Last reviewed: 11 August 2014