This assignment analyzes the tax implications of a cash gift received by a surf life saver for their work. It examines the Australian Taxation Office's (ATO) guidelines on gifts, specifically Division 30 of the ITAA 1997, which defines allowable deductions. The analysis considers whether the gift should be included in the life saver's assessable income based on its connection to employment and value. Relevant tax laws and case examples are used to support the conclusion.