The sole parent rebate was at one time a separate rebate of tax claimable by single parent taxpayers in their tax return. While this is no longer the case, the sole parent still exists as a “notional rebate” for the purposes of the Zone Tax Offset.
The value of the sole parent rebate is specified in section 961-60 of the Income Tax Assessment Act 1997 and has remained unchanged for many years at a value of $1,607.
Unlike the Dependant Invalid and Carer Tax Offset (DICTO), the sole parent rebate is not indexed, and is not subject to the separate net income test.
How much is the sole parent rebate?
The amount of the sole parent rebate (notional tax offset) for an income year is $1,607. This amount is not indexed and not subject to an income test.
The offset is “notional” because it can no longer be claimed. The offset is only used in the calculation of the zone and defence forces tax offsets.
Part year apportionment of the rebate amount applies appropriately.
Eligibility for notional sole parent tax offset
Basic eligibility conditions for the notional sole parent tax offset include:
- The offset applies for an income year if you are the sole contributor to the maintenance (i.e. sole care) of a non‑student child or a student dependant.
- The dependent must be less than 25 years of age, and a full‑time student at a school, college or university; or otherwise under 21.
- You must be an Australian resident. If the dependent is not an Australian resident you must be domiciled in Australia.
- You must not have had a spouse (including defacto) during the year unless there are extenuating circumstances (in the Commissioner’s opinion), in which case apportionment can also apply.
This page was last modified 2021-06-28