Tax and your scholarship

Key dates

To be eligible for tax exemption, a scholarship, bursary, educational allowance, or educational assistance must be open to a wide range of candidates.

Scholarships, bursaries or other educational allowances are exempt from pay-as-you-go (PAYG) withholding and personal income tax where payment is:

  • made to a student receiving full time education, that is, undertaking a full-time course
  • not received ‘on the condition’ that they become, or continue to be, an employee of UWA or enter into, or continue to be, a party to a contract for labour with UWA
  • principally for educational purposes
  • paid by a school, college or university
  • does not have any requirement attached that amounts to the student having to render services.

There also must not be a condition that the student 'will' render or 'continue' to render services. Furthermore, the mere fact that a scholarship holder has to lodge an annual progress report to the scholarship provider also does not constitute a requirement to render services.

If you are not sure whether your scholarship is taxable, visit the Australian Taxation Office for more information.