This assignment analyzes the legal distinction between hobby activities and business ventures from a taxation perspective. It utilizes the case of Betty and Allan who earned income through selling homemade marmalade in a barter system to illustrate key concepts. The document delves into Taxation Ruling TR 97/11 and relevant case law to define the criteria for classifying activities as businesses. It further explores the application of the Income Tax Act 1997 and Goods and Services Tax (GST) regulations to barter transactions, emphasizing that such arrangements are treated similarly to cash or credit sales for tax purposes.