A teenage scholarship winner has been stripped of her prize because only one of her parents is Protestant.
Jemima Holmes, 18, received a Universities Admission Index of 99.3 in her HSC at Lismore High School on the far north coast last year.
A spokesman from the NSW Department of Education said as a result she was awarded a scholarship from the Nesbitt fund, believed to be worth $11,700.
But it was withdrawn after another student's parents complained Jemima did not fulfil the scholarship's criteria which required both parents to be Protestant, he said.
Jemima's mother, Julia Holmes, said their religion should be irrelevant if they were non-practising.
"It doesn't matter if it doesn't mean anything to you or you don't practise the religion," Ms Holmes told ABC radio.
"It just shows how ridiculous it is, as long as they have the holy water tipped on them in a certain church then the child can get the money. It's really bizarre."
The Education Department was awaiting legal advice on the administration of the George Nesbitt bequest, the spokesman said.
"The terms of the scholarship are exceptional," he said.
"The award has a long history. It's not our practice to hand out awards based on religious affiliation and we are seeking legal advice as quickly as possible about how to proceed in the present situation."
A Lismore High School spokeswoman said the department had advised the school not to comment.