Private ruling: Scholarships income
Date of advice: 24 September 2020
Published: November 2020
Ruling period: Year ended 30 June 20XX | Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are your scholarships exempt from income tax ? | A1: Yes. You are a full-time university student who receives scholarships that are provided principally for educational purposes. There is no requirement that you be an employee or enter into any contract with the scholarship provider that is wholly or principally for labour. Accordingly, your scholarship payments are exempt from income tax and will not form part of your assessable income.

Relevant facts and circumstances: You are a full-time student enrolled at a University. You have received two scholarships. There is no requirement in either scholarship that you are to be employed or enter into any contract for labour, or that give the provider the right to your work. The scholarships are paid principally for educational purposes.

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