EV 1052178807144currentnon-binding advice

Assessable income

Non-binding edited private advice. This is an edited version of private advice the ATO gave to a specific taxpayer about their own circumstances. You cannot rely on it — it is not binding and provides no protection for anyone else (see PS LA 2008/4). Use it as a guide to the ATO’s thinking, not as authority.

1

Are the scholarship payments you received from overseas assessable income?

2

No. Ordinary income received by temporary residents of Australia from a foreign source is not assessable income in Australia. Therefore, the scholarship payments you received from overseas while a temporary resident of Australia are not assessable. This ruling applies for the following period : Year ended 30 June 20XX The scheme commenced on: 1 July 20XX

3

On XX XX 20XX you were granted a temporary visa (subclass 408) and became a temporary resident of Australia. On XX XX 20XX you came to Australia. From XX XX 20XX to XX XX 20XX, you were enrolled as a student overseas. During this time, you received monthly scholarship payments. You paid overseas taxes on the scholarship payments. On XX XX 20XX you commenced a 3-year employment contact with XXXX). On XX XX 20XX you obtained a temporary visa (subclass 482) sponsored under your employment contract with XXXX. Your employment in Australia is not related to your scholarship. You gained your employment through a public recruitment process. You intend to return overseas at the end of your 3-year contact with XXXX. From XX 20XX you became a resident of Australia for tax purposes.

4

Income Tax Assessment Act 1997 subsection 6-5(2) Income Tax Assessment Act 1997 section 768-910 Income Tax Assessment Act 1997 subsection 995-1(1)