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Edited version of private advice
Authorisation Number: 1051540196444
Date of advice: 4 July 2019
Ruling
Subject: Assessability of payment from foreign language program
Question
Are the payments received while participating in an education program in Country X assessable?
Answer
No. The payments are paid to compensate you for living expenses during your time in the program. They are not a reward for services performed. Therefore they will not be considered assessable income.
This ruling applies for the following period:
Year ended 30 June 20XX
Relevant facts and circumstances
You both participated in an education program run by Country X.
You each received a small monthly stipend for housing and living expenses in Country X.
All other expenses, including travel were your own responsibility.
The post was regarded as a scholarship by the Country X government and as such no tax is payable in Country X.
Participants in the program receive a Student Visa.
You both have regular employment in Australia.
You both did not do any formal education whilst on this program.
You both undertake some language classes independently while in Country X.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 6-5
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