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.