Private ruling: Bursary income
Published: December 2012
Ruling period: Year ended 30 June 2013
Date scheme commenced: 1 July 2012

Ruling: Q1: Is the bursary income you receive included in your assessable income? | A1: Yes


Relevant legislative provisions: Income Tax Assessment Act 1997 section 6-5

Reasons for decision: Summary: Section 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997) states that an Australian resident taxpayer is liable to pay tax on income derived from all sources whether in or out of Australia, during the income year. However, income which is exempt income does not form part of a taxpayers assessable income. Section 51-10 of the ITAA 1997 provides that if you are a full-time student at a school, college or university and receive a scholarship, bursary, educational allowance or educational assistance, then the amount received is exempt from tax. You receive a bursary from your employer. However, as you are not a full-time student enrolled at a school, college or university the payments you receive are not exempt from tax. There are no provisions within the taxation legislation which will allow the Commissioner to exempt your bursary income from forming part of your assessable income. Therefore, your bursary payments form part of your assessable income under section 6-5 of the ITAA 1997.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet. | Your employer pays you a bursary to offset your university costs.