1.1.V.25 Valuable consideration


This definition applies to all payments.


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

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