Annisa is a medical practitioner, working full time for St Benedict's Hospital in Melbourne CBD. Sheis in her final year of her residency program and works approximately sixty (60) hours a week. She is also an enthusiastic sculptor and during her spare time, carves small pieces of sculptures such as pottery, metalwork and jewellery.

Annisa has been practising her artwork for the last five (5) years. During this time, she has been regularly attending art clubs to learn various techniques. Sometimes she sells her sculptures to family and friends for $50 each, but rarely profits. She has also entered a few local art competitions. On one occasion, she won'popular artist'prize, being a trip to the Gold Coast, valued at $2000.

Upon completion of her residency program in January 2024, Annisa decides to take a year off from practising medicine. Annisa wants to dedicate more time to developing her sculpture work. She expands the types of sculptures she creates by carving statutes, and experiments with different materials such as glass and wood. She also explores different styles and periods, such as Ancient Greek, Roman and South East Asia. Annisa decides to work with her cousin, Arif, who is a gallerist and owns an art gallery in Melbourne CBD. Arif pays Annisa double the price of the cost of materialsas they are 'family', but acknowledges her talent. Whilst Annisa earns $150 a piece from Arif, she expresses that her work is forthe 'love and therapy'and is not minded about the money. Annisa does not keep many detailed records of her income and expenses, but begins to profit from the sales to Arif.

Eightmonths later, Annisa's growing artistic reputation precedes her. Other galleristsstart to buy her sculptures, paying her $440 a piece to display in their art galleries. Annisa also subscribes to various art journals and joins an Australian association for professional artists. Moreover, Annisa decides to hire an accountant to assist her with her finances, giving the expanding nature of her artwork activities.

Furthermore, Annisa cultivates more contacts, both in Australia and internationally. One such contact is a renowned buyer who offers Annisa a lump sum of $33,000 to exclusively sell to them for one year, all of her glass sculptures. The conditions of the offer require Annisa to no longer sell her glass sculptures to Arif or any other gallerist, but do not prevent Annisa from selling her other art pieces. Annisa believes this offer is a wonderful opportunity as her glass sculptures would be displayed in one of the most reputable galleries, and accepts it. She also decides to take another year off from practising medicine.

Question 1: Advise Annisa as to whether any of the following gains would be included as part of her ordinary income or statutory income:

(a) The gains made from her artwork activities prior to January 2024 (that is, the sales to her family and friends and the trip to the Gold Coast)

(b) The gains made from her sales to Arif

(c) The gains made from her sales to other gallerists

(d) The gain of $33,000 made to exclusively sell her glass sculptures to a renowned buyer

support it with relevant legislation and case law.