Single Income Family Supplement (SIFS) 007-10010000

From 1 July 2017, SIFS is no longer payable to new customers (through FTB instalment reconciliation, FTB lump sum claims or SIFS standalone claims) for the 2017-18 and later financial years. Grandfathering provisions will be in place for existing families.

SIFS is paid to existing eligible customers for the 2017-18 and later financial years if they meet the following grandfathering provisions:

• They were eligible for and received SIFS at a legislative rate greater than nil in respect of 30 June 2017. In addition, the following customers are 'in receipt of SIFS' if their SIFS payment is
• paid to a third party on their behalf (for example, a nominee), or
• used to offset an overpayment
• A customer can become grandfathered if they were initially not entitled to SIFS, but as a result of a reassessment, they are found to be eligible for and received SIFS at a legislative rate greater than nil in respect of 30 June 2017

Continuing grandfathered status

Grandfathered status for a customer will continue provided they remain eligible for and are paid SIFS continuously from 1 July 2017. That is, their grandfathered status is determined based on the customer's circumstances (and SIFS eligibility) for each day in the entitlement year. A customer loses their grandfathered status on the first day they do not meet any of the SIFS eligibility criteria.

They will be paid SIFS up to the day they lose their eligibility.

Once a customer has lost grandfathering for SIFS, they cannot be paid SIFS again for any future periods. The exception to this is if their payment is reassessed and:

• as a result of the reassessment they are found to be paid SIFS continuously from 30 June 2017, and
• there are no periods where they were not eligible for SIFS

Grandfathered customers can continue to access special circumstances extensions for claim lodgement and income confirmation from 1 July 2017, provided they meet the special circumstances provisions.

SIFS is an annual non-taxable payment of up to $300 for families with one main income earner and single income families.

SIFS is payable from 1 July 2013 for the 2012-13 financial year (assessment year) to 30 June 2017 for new and existing customers. For the financial years 2017-18 onwards, SIFS is only payable to existing customers if the grandfathering provisions are met.

Families eligible for Family Tax Benefit (FTB) do not need to claim SIFS. Their SIFS entitlement is automatically calculated when FTB reconciliation occurs or when their FTB lump sum claim is assessed. SIFS is paid as the third part of FTB.

Non-FTB customers with a qualifying child in their care will need to lodge a standalone SIFS claim after the end of each financial year to have their SIFS entitlement assessed. Customers have until 30 June of the lodgement year to lodge their SIFS claim and provide adequate income details (for example, by 30 June 2018 for 2016-17 financial year). Customers who have special circumstances that prevented them from lodging their claim or providing adequate income details by the end of the lodgement year may be granted an extension of time to meet the requirement.

A person is eligible to receive SIFS for an assessment year if they:

• had at least one qualifying child (FTB child, or a child who would be an FTB child except that they (or someone on the child's behalf) received a payment in their own right)
• meet income requirements
• primary earner taxable income was more than $68,000 and less than $150,000
• secondary earner taxable income (members of a couple) was less than $18,000
• meet residence requirements
• meet claim requirements (non-FTB customers)
• meet grandfathering provisions (from 1 July 2017 onwards)

Approved Care Organisations are not eligible for SIFS.

SIFS is calculated as a daily rate which applies for the period(s) in the assessment year the customer was eligible. The maximum SIFS payment is $302.95 but is being communicated as $300. This will not be indexed.

Shared care does not affect the SIFS rate but eligible customers must have at least 35% care of a child (as for FTB).

• The rate increases (from nil at $68,000) up to the maximum rate of $300 if primary earner income is between $80,000 and $120,000. The rate then reduces (to nil at $150,000)
• Secondary earner income over $16,000 then reduces the rate (to nil at $18,000), only for partnered customers and only if the primary earner income tested rate is more than nil

Taxable income: Unlike FTB Part A and Part B, SIFS entitlement is based on taxable income only, not adjusted taxable income (ATI).