Tax and part-time scholarships
As per Australian Taxation Office (ATO) Legislation, part-time stipend scholarships are subject to having PAYG (income tax) withheld and normal tax treatments apply.
If you transfer your stipend scholarship from full-time to part-time, you will be asked if you want to claim the tax-free threshold for your income from the part-time scholarship. You are eligible to claim the tax-free threshold if:
- you are not currently claiming the tax-free threshold from another payer
- you are currently claiming the tax-free threshold from another payer and your total income from all sources will be less than the tax-free threshold.
Note: if you receive any taxable government payments or allowances, such as Newstart, Youth Allowance or Austraudy payments, you are likely to be already claiming the tax-free threshold from that payment.
For more information about the current tax-free threshold, which payer you should claim it from, or how to vary your withholding rate, visit ato.gov.au/taxfreethreshold
A full-time stipend scholarship provided principally for educational purposes is tax exempt. See 'Is my scholarship taxable?' for more information.