Tax advice and Centrelink

Centrelink

Under the Social Security Act 1991 all scholarship payments are considered income by Centrelink in the calculation of income tests for the awarding of benefits.

However, the following scholarships are specifically excluded from the definition of income for Centrelink purposes:

• Commonwealth Education Costs Scholarships (CECS) 
• Commonwealth Accommodation Scholarships (CAS) 
• Indigenous Access Scholarships 
• Any scholarships that pay or waive student fees - where the student has no choice in the use of the scholarship and cannot choose to receive the scholarship as a direct cash payment.

If you wish to apply for/or are in receipt of Youth Allowance/AUSTUDY/ABSTUDY or other Centrelink benefits, you should contact Centrelink for advice regarding your scholarships/bursaries likely effect on your benefit. 

Tax

All scholarship/bursary payments made to students studying on a full-time basis, i.e. 0.375 EFTSL (18 credit points) or greater per semester, are tax exempt.

Scholarship/bursary payments made to students studying on a part-time basis will be assessed for tax and must be declared in your tax return.

Further information is available on the ATO website.