On 1 April 2020, Henry signed a lease with Honest Properties Ltd for a retail shop in a new regional shopping centre. The lease was $4,000 per month and operated for two years from 1 May 2020. Henry also had to pay an up-front premium to Honest Properties Ltd of $2,000. However, due to building difficulties, on 28 April 2021 Honest Properties Ltd sought a variation on the lease, of a deferment of the lease for one month, and required Henry to move to another shop 2 elsewhere in the shopping centre. As a result of this, Henry received $5,000 and one month's rent free from Honest Properties Ltd in consideration for agreeing to vary the terms of the lease. Honest Properties Ltd also owned multiple residential properties and Henry rented an apartment for $1,000 per month.

Question

Assuming Honest Properties Ltd are builders and only occasionally lease property, advise both the lessor and lessee of the tax consequences of the transaction.