Private ruling: Assessable income
Date of advice: 27 October 2025
Published: 15 December 2025
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Is the payment received by you for an 'Practicum Placement Grant' assessable income? | A1: No. Section 6-15 of the Income Tax Assessment Act 1997 (ITAA 1997) explains that if an amount is exempt income, it is not assessable income. Section 51-10 of the ITAA 1997 provides, subject to some exceptions listed in section 51-35 of that Act, that a scholarship, bursary, educational allowance or educational assistance payment is exempt from income tax if it is paid to a full-time student at a school, college or university. As you were a full-time student at a university and received the payment for completing practical placement as part of your studies, the payment meets the conditions as exempt income. Consequently, the payment is not assessable under section 6-15 of the ITAA 1997. Therefore, you do not need to include the amount you received in your income tax return year ending 20XX.

Relevant facts and circumstances: At the end of 20XX, you commenced a Bachelor course at a university as a full-time student. As part of your studies, you were required to complete placement days relating to your studies. From XX/XX/20XX to XX/XX/20XX, you completed X placement days. You were not employed as a government employee, and you were unemployed from XX 20XX until after completing your last placement. In XX 20XX you applied for a Practicum Placement Grant with a government Department. In a provided document dated XX/XX/20XX you were advised that your application for a Grant with the Department was successful based on the above placement. You received the payment in a lump sum. A provided document from the Department explains and details the following conditions for payment of the Practicum Placement Grant: 1. Definitions In these terms and conditions: Paid Practicum Grant or Grant provides financial support to eligible students studying an undergraduate degree or postgraduate qualification on completion of their final practicum placement of their qualification in a service that delivers an approved program. Eligibility Requirements means the Applicant: (a) is an Australian citizen or permanent resident; and (b) is a resident of this state or resides in a location bordering this state, and (c) was a student enrolled in an approved undergraduate degree (e.g. Bachelor) or postgraduate qualification (Graduate Certificate, Graduate Diploma or Masters); and (d) completed 15 consecutive days of final practicum placement; and (e) was not employed in this states service at the time of the Applicants' final practicum placement. 2. Applications 2.1. Applying for a Grant is deemed acceptance of these Terms and Conditions. 2.4. The Grant is only open to Applicants who meet the Eligibility Requirements, otherwise the Applicant will not be considered any further for Grant funding by the Department. 2.5. The conduct of inviting an Application does not give rise to any legal or equitable relationship between the Department and the Applicant. In X/20XX you received a certificate of graduation for a Bachelor in your university course.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 6-5 | Income Tax Assessment Act 1997 section 6-10 | Income Tax Assessment Act 1997 section 6-15 | Income Tax Assessment Act 1997 section 51-10 | Income Tax Assessment Act 1997 section 51-35