1.1.M.136 Merit or equity-based scholarship
Definition
A merit or equity-based scholarship is a scholarship that is awarded to a student to:
- recognise the student's achievement in studying or in undertaking research at an educational institution, or
- enable the student to study or undertake research at an educational institution.
A scholarship granted to a student for either of these purposes is treated as exempt income for social security purposes to the extent that the payment does not exceed the person's threshold in a calendar year ($9,174 in 2023).
The value of this threshold is indexed on 1 January each year.
Note: Merit or equity-based scholarships do not include Commonwealth scholarships or relocation scholarships, which are excluded amounts for social security purposes.
Act reference: SSAct section 8(8)(zjd) Excluded amounts—general, section 8(8AA) For the purposes of paragraph (8)(zjd), each of the following is an excluded payment …, section 8(8AB) For the purposes of paragraph (8)(zjd), a person's threshold amount …
Policy reference: SS Guide 4.3.9.40 Income from scholarships