ATO Interpretative Decision
ATO ID 2002/333 (Withdrawn)
Income Tax
Eligibility for Family Tax Benefit - taxpayer in receipt of Parenting PaymentFOI status: may be released
-
Reason for withdrawal: Decision invalid because the Commissioner of Taxation is not empowered to issue rulings or ATO Interpretative Decisions on Eligibility for Family Tax Benefits. Please refer to the Family and Community Services Website for further information on this topic.This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Is a taxpayer who is a single parent in receipt of Parenting Payment from Centrelink, eligible for Family Tax Benefit (FTB) Part B under section 21 of the A New Tax System (Family Assistance) Act 1999 (Family Assistance Act)?
Decision
Yes. A taxpayer who is a single parent in receipt of Parenting Payment from Centrelink is eligible for FTB Part B under section 21 of the Family Assistance Act as single parents receive the standard rate of FTB Part B irrespective of their income.
Facts
The taxpayer is a single parent in receipt of Parenting Payment (single) from Centrelink.
The taxpayer is a resident of Australia and has 1 FTB child.
Reasons for Decision
Section 21 of the Family Assistance Act provides that an individual is eligible for family tax benefit if:
- •
- the individual has at least 1 FTB child;
- •
- the individual is residing in Australia; and
- •
- the individual's rate (as calculated under Division 1 of Part 4 of the Family Assistance Act) of family tax benefit is greater than nil.
Parenting Payment is an income support payment, payable to single and partnered parents who satisfy eligibility requirements set by Centrelink. The rate of payment is determined by an income and assets test.
FTB is also income tested, however clause 29 of Schedule 1 to the Family Assistance Act provides that an individual's Part B rate is the individual's standard rate worked out using Division 2 (clauses 30 and 31) if the individual is not a member of a couple. Clause 30 of the Family Assistance Act sets out the standard rate. Single parents receive the standard rate of FTB Part B irrespective of their income, that is they are not subject to an income test in order to receive the standard Part B entitlement.
Where single parents are eligible for a full or partial payment of Parenting Payment (single), they are automatically entitled to receive the standard rate of FTB Part A as well as Part B, as a direct fortnightly payment from Centrelink.
The taxpayer has received a Parenting Payment (single) from Centrelink and has 1 FBT child. The taxpayer satisfies the eligibility conditions under section 21 of the Family Assistance Act and is therefore entitled to the FTB Part B.
Date of decision: 5 February 2002
Legislative References:
A New Tax System (Family Assistance) Act 1999
section 21
schedule 1 clause 29
schedule 1 clause 30
Other References:
Family Assistance Office publications
Taxpack
FamilyBuzz magazine
Keywords
Family tax assistance
ISSN: 1445-2782
| Date: | Version: | |
| 5 February 2002 | Original statement | |
| You are here | 12 April 2002 | Archived |