Private ruling: Assessable income - scholarship
Published: August 2011
Ruling period: Year ended 30 June 2009 | Year ended 30 June 2010 | Year ended 30 June 2011
Date scheme commenced: 1 January 2009

Ruling: Q1: Is the Commonwealth Accommodation Scholarship you receive exempt income? | A1: Yes.

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. You are a full time student at university. You are in receipt of a scholarship. You have received this scholarship since commencing university and will continue to receive it up until you graduate. The scholarship is provided principally for educational purposes.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 6-5 and | Income Tax Assessment Act 1997 Section 51-10. Detailed reasoning | Subsection 6-5(2) of the Income Tax Assessment Act 1997 (ITAA 1997) provides that the assessable income of a resident taxpayer includes ordinary income derived directly or indirectly from all sources during the income year. However, if an amount is exempt income, then it is not included in the assessable income of a taxpayer (section 6-15 of the ITAA 1997). | Item 2.1A of the table in section 51-10 of the ITAA 1997 provides that, income received by way of a scholarship, bursary, educational allowance or education assistance by a full-time student at a school, college or university is exempt from income tax. This is subject to the exceptions and special conditions contained within section 51-35 of the ITAA 1997. | For the scholarship to be exempt from income tax: | · you must be a full-time student at a school, college or university | · you must be in receipt of a scholarship and the scholarship must be provided principally for educational purposes, and | · there must be no condition that you be an employee of the scholarship provider or enter into any contract with the scholarship provider that is wholly or principally for labour. | In your case you are a full time student at a university and receive a scholarship that is provided principally for educational purposes. Accordingly, the scholarship that you receive is exempt from income tax under section 51-10 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.