Private ruling: Assessable income
Date of advice: 16 February 2026
Published: 7 April 2026
Ruling period: Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Is the scholarship you receive as a part time student exempt from income tax? | A1: No.

Relevant facts and circumstances: You are enrolled in an educational facility. You received a scholarship several years ago. Due to personal reasons, you were on leave for a period of time. You resumed study on a part-time basis. The educational facility has approved payment of your scholarship on a part-time basis due to your circumstances. You are not employed by the educational facility and receive no remuneration for work-these payments are solely to support your research and study.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 6-5 | Income Tax Assessment Act 1997 section 11-15 | Income Tax Assessment Act 1997 section 51-10

Reasons for decision: Summary: Subsection 6-5(2) of the Income Tax Assessment Act 1997 (ITAA 1997) provides that the assessable income of an Australian resident includes ordinary income derived directly or indirectly from all sources during the income year. Ordinary income is generally considered to include: • amounts received in return for personal services, whether received in the capacity of an employee or otherwise, and • amounts received periodically or regularly and which the recipient relies on for the maintenance of themselves and/or their dependants Payments received under a scholarship are ordinary income except if an amount is exempt income. Section 11-15 of the ITAA 1997 lists certain types of exempt income, including Item 2.1A of the table in section 51-10 of the ITAA 1997, which makes exempt from income tax amounts paid as a scholarship, bursary, educational allowance, or educational assistance to a full-time student at a school, college, or university. Section 51-10 provides that, subject to some exemptions and special conditions, 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. In general terms, for a scholarship to be exempt from income tax: • you must be a full-time student at a school, college or university; • you must receive 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. | Detailed Reasoning - Application to your circumstances: You are classified as a part-time student. While your reasons for studying part time are recognised, there is no flexibility to extend the provision to exempt part-time students. You do not meet one of the essential requirements set down by section 51-10, that is, that you must be a full-time student at a school, college or university. The Commissioner has no discretion to ignore the requirement that the recipient must be a full-time student. Your scholarship is not exempt from income tax because you are a part-time student You are required to declare this income in your tax return.