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Edited version of private advice
Authorisation Number: 1051759337415
Date of advice: 24 September 2020
Ruling
Subject: Scholarships income
Question
Are your scholarships exempt from income tax?
Answer
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.
This ruling applies for the following periods:
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
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