Income from Gifts, Legacies and Royalties

If the gift is ...

then it is...

received as a one-off payment    

not treated as income.    

received regularly from a parent, child, brother or sister of the person (the definition of a parent is further defined in section 10A of the VEA)

not treated as income

received regularly from any other source

treated as income.

If the royalty payment is...

then it is treated as income...

made directly to a self-employed pensioner

and assessed by adding income from royalties to the fees and other income earned from the self-employment and then deducting expenses to calculate a net profit.

a lump sum amount paid to a pensioner who is not self-employed

for 12 months from the date the person is entitled to receive that amount.

If the royalty payment is...

then...

paid to a self employed member of an indigenous community

it is treated as income..

• paid directly to an indigenous community (usually into a non-discretionary trust administered by community leaders), and
• used by the community

it not treated as income of the individual pensioner.

• paid directly to an indigenous community, and
• the indigenous people's council subsequently made payments to a pensioner from the royalty payments invested by the community

those payments are considered income.