Private ruling: Assessable income
Date of advice: 18 October 2023
Published: 27 November 2023
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are the scholarship payments you received from overseas assessable income? | A1: No. Ordinary income received by temporary residents of Australia from a foreign source is not assessable income in Australia. Therefore, the scholarship payments you received from overseas while a temporary resident of Australia are not assessable.

Relevant facts and circumstances: On XX XX 20XX you were granted a temporary visa (subclass 408) and became a temporary resident of Australia. On XX XX 20XX you came to Australia. From XX XX 20XX to XX XX 20XX, you were enrolled as a student overseas. During this time, you received monthly scholarship payments. You paid overseas taxes on the scholarship payments. On XX XX 20XX you commenced a 3-year employment contact with XXXX). On XX XX 20XX you obtained a temporary visa (subclass 482) sponsored under your employment contract with XXXX. Your employment in Australia is not related to your scholarship. You gained your employment through a public recruitment process. You intend to return overseas at the end of your 3-year contact with XXXX. From XX 20XX you became a resident of Australia for tax purposes.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 6-5(2) | Income Tax Assessment Act 1997 section 768-910 | Income Tax Assessment Act 1997 subsection 995-1(1)