Other Income – What the ATO Wants to Know (and What Gotax Online Thinks You Should Know)

What Even Is "Other Income"?

“Other income” is the ATO’s miscellaneous bin — the place for any cash or value you receive that doesn’t fall into the tidy buckets of wages, business, rental, or investment earnings. If you made money or received something of value and you’re not sure where it goes… odds are, it lands here.

What Counts as Other Income?

Hobby Income

Sold your artwork, crafts, or a few homegrown veggies at the market? If it’s not a business but you’re getting paid — declare it as other income.

Prizes and Awards (Work-Related)

Got a gift card, bonus, or cash prize through your job or profession? That’s income — even if it came with applause. NOT winning the Lotto.

Insurance Payouts (For Lost Income)

If your insurance policy pays you for lost income (say, due to injury or illness), that’s taxable. Payments for damaged goods? Not usually taxable.

Royalties

Wrote a book, licensed a design, or created music that earns you royalties? Declare it. That’s income.

Tips and Gratuities

Whether it’s a few bucks slipped your way or regular tips at work — it’s income. Declare it.

Loyalty Rewards (Converted to Cash or Goods)

If your frequent flyer points, rewards, or loyalty programs get turned into goods or cash — and it’s work-related or substantial — the ATO may consider it income.

Foreign Income

Earnings from overseas work, investments, or pensions may be taxable in Australia. Some gifts from overseas might be excluded — but don’t assume.

Crowdfunding

Raised money online through GoFundMe, Kickstarter, or similar? If you gave anything in return (even a t-shirt), or if it supports a business idea — it’s income.

Barter and Non-Cash Payments

Get paid in meat trays, surfboards, or cases of wine? If it’s for services you provided, it’s taxable. You must declare its value in dollars.

What’s NOT Other Income?

• Random Cash Prizes: Lotto wins, raffles, and game shows — generally tax-free unless they’re work-related.

• Genuine Gifts and Inheritances: Money from family or an estate — not taxable.

• Personal Crowdfunding for Emergencies: If the public chips in to support you during a crisis and you offer nothing in return — not taxable.

What You Need to Do

• Keep Records: Track what you received, when, how much it was worth, and why.

• Declare It: If it’s income, don’t skip it — the ATO is watching.

• Check Before You Ignore It: Not all payments are taxable, but most forms of other income are.

Gotax OnlineTax Tips

• Don’t Double Dip: If you’ve already declared it under business or investment, don’t stick it in “other income” too.

• Non-Cash Still Counts: If you get paid in goods, services, or crypto, value it in dollars and declare it.

• Not Sure? Ask: Check the ATO’s site or talk to a tax pro before leaving it off.

In Plain English

If you got money, stuff, rewards, or even a dodgy trade for helping someone out — and it wasn’t wages, rent, or business income — it likely belongs here. The ATO wants you to treat all income seriously.

Bottom line: If you made money, got something valuable, or someone paid you with a case of beer — the taxman wants to know. Declare it, and keep your books clean.

Gotax Online FAQ – Real Questions, Real Fast

Q: I won $500 in a raffle. Do I have to pay tax on that?
A: No. Most random prizes (like raffles, lotto, game shows) are NOT taxable.

Q: I got a $200 gift card from work for being Employee of the Month. Is that income?
A: Yes. That’s a reward related to work — declare it.

Q: I sold some handmade bracelets at the markets, but it’s just a hobby. Do I declare that?
A: Absolutely. Hobby income still counts.

Q: I got paid in free stuff instead of cash. Do I declare that?
A: Yes. If it’s for services, it’s income — work out the fair value.

Q: I got a payout from my insurance for lost income. Is that taxable?
A: Yep. Lost income replacement is income. Declare it.

Q: I got a cash gift from my grandma. Is that income?
A: Nope. Genuine gifts from family or friends aren’t taxable.

Q: I raised money on GoFundMe for a personal cause. Is that income?
A: Usually not — unless you offered something in return or it’s connected to a business or side hustle.

More GOTAX Resources

BLOG https://www.gotax.com.au/blog