Private ruling: Scholarship income
Date of advice: 16 October 2017
Published: March 2018
Ruling period: Year ended 30 June 2017
Date scheme commenced: 1 July 2016

Ruling: Q1: Is the scholarship income you receive exempt from income tax? | A1: Yes As you are a full time student in receipt of a scholarship provided principally for educational purposes and are not required to enter into a labour contract with the scholarship provider, your scholarship income is exempt from income tax as per section 51-10 of the Income Tax Assessment Act 1997

Relevant facts and circumstances: You study full time at a University. You are undertaking a professional placement as part of your course. This placement or Industry Based Learning involves assessments and generates credit towards your degree. You are paid a stipend/scholarship amount by the university for your placement. You are not and will not be required to work for the university or the host organisation on completion of your study or placement.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 51-10


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