Generally scholarship money paid to full-time students is not treated as taxable income, however if your study load is less than 75 credits (part-time) your scholarship money is not tax exempt. Other than the full-time study requirement, the general rule is that scholarships are exempt from taxation unless:
- It is a condition of the scholarship that a recipient is required to undertake activities that are of use, help or benefit to the scholarship provider – then the student is rendering a service by agreeing to undertake those activities;
- An award is received by a student where the scholarship is not provided principally for educational purposes.
- During or upon completion of the degree for which the scholarship is awarded a recipient is required to become, or shall continue to be, an employee of the funding body; or
The Australian Tax Office has a tool to help you determine if your scholarship is taxable. For expert advice please contact the Australian Taxation Office or your accountant when completing your annual Tax Return. If a letter regarding your scholarship is required for taxation purposes, please contact the Scholarships Office.
