In 2025, stipends are playing an increasingly important role in Australia’s education and professional sectors. Whether you’re a university student, a PhD candidate, or embarking on an internship, understanding how stipends work—and how recent policy changes may affect you—is essential for smart financial planning.
What Is a Stipend and Who Gets One?
A stipend is a fixed, regular payment provided to individuals, often in the context of education, research, or training. Unlike a wage or salary, stipends are not always compensation for formal employment, but are intended to cover living expenses while you undertake study or training. In Australia, common recipients include:
- Postgraduate research students: Many PhD and Masters candidates receive stipends through the Australian Government Research Training Program (RTP).
- Interns and trainees: Some unpaid or low-paid internships, especially in not-for-profit or research sectors, may offer stipends.
- Medical and teaching placements: Students in clinical or rural placements often receive travel or living stipends.
In 2025, the RTP base stipend rate has increased to $33,000 per annum (full-time equivalent), reflecting adjustments for cost-of-living pressures. Universities may top up this amount for competitive candidates or those in high-demand research areas.
Stipends vs. Salaries: Key Differences
It’s important to distinguish stipends from regular employment income:
- No employer-employee relationship: Stipend recipients are not considered employees, so standard workplace entitlements like superannuation, paid leave, and overtime do not apply.
- Taxation: Many research stipends are tax-free under Australian law, but not all stipends are exempt. For example, stipends for internships outside the RTP or those provided by private organisations may be taxable.
- Superannuation: Stipends do not automatically include superannuation contributions, so it’s up to the recipient to consider voluntary contributions if they wish.
Always check the terms of your stipend agreement and consult the ATO’s latest guidance to determine your tax and reporting obligations for 2025.
Recent Policy Changes and What They Mean for Recipients
The last two years have seen several changes affecting stipend recipients in Australia:
- RTP Increase: As noted, the minimum Research Training Program stipend rose in 2025 to address inflation and cost-of-living challenges, giving students a little extra breathing room.
- Remote Placement Stipends: The federal government expanded support for students undertaking rural, regional, or remote placements, with additional stipends now available for accommodation and travel costs.
- Tax Guidance Updates: The Australian Taxation Office has clarified its stance on what constitutes a tax-free stipend, and more internships now fall under taxable arrangements, particularly those not linked to a formal degree requirement.
- Work Rights for Visa Holders: International students on stipends should note new 2025 visa rules, which clarify that stipend income does not count toward work hour limits, as long as the payment is part of a formal study program.
For example, a Monash University PhD candidate in 2025 receives a $34,000 annual stipend (tax-free), plus an additional $3,000 rural placement stipend for a semester in regional Victoria. Conversely, a law student on a summer internship with a Sydney firm receives a $600/week stipend, which is treated as taxable income.
Making the Most of Your Stipend
Living on a stipend often means budgeting carefully, but there are strategies to maximise your financial wellbeing:
- Track expenses: Use budgeting apps or spreadsheets to monitor spending and identify savings opportunities.
- Leverage student discounts: Many stipendees are eligible for public transport, software, and retail discounts.
- Plan for tax: If your stipend is taxable, set aside a portion of each payment to avoid bill shock at tax time.
- Consider voluntary super: Small, regular contributions can help build your retirement savings, even during your study years.
For those struggling to make ends meet, most universities and training providers offer emergency grants or financial counselling services.
Conclusion
Stipends are a lifeline for thousands of Australians in study, research, and training—especially with recent cost-of-living increases. With 2025 policy changes bringing higher base rates, expanded eligibility, and clearer tax rules, understanding your stipend is more important than ever. Make sure you’re across the details and taking steps to maximise your financial security during this critical stage of your career.
