Back in the bad old days if grandpa gave you £10,000, gift duty (AKA tax) was payable on that “income”. Reasonably, gift duty was discontinued. A gift, whether money or something else, is basically passing of value, not always money, as a gesture of goodwill towards the recipient.
The most regular gift given in our society is a tip. The taxi driver’s meter says $17.90, so you give him $20 and say “keep the change”. In our increasingly cashless society tips are added to a credit card bill. Are they income? Or are they gifts?
Don’t bother trying to answer those questions, especially if you’re a waiter, chauffeur or a taxi driver. The ATO has the only answer!
If part of your income includes tips please don’t invite a tax meeting, an inspection or a PENALTY for failure to declare tips as income.