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Deduction against Parenting Payment Income

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Newbie

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I am in receipt of a parenting payment which is reduced by varying amounts each fortnight relative to my employment income for the corresponding period.

Parenting payment is assessable income: can I claim the expenses of maintaining my child being a necessary expense to derive the assessable income viz. Parenting payment.

If not why not.  I accept that portion of the expenses relating to my child is of a private or domesic natur; but much of the expense surely related to the income - without the child there would be no income received

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Anonymous

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The parenting allowance is paid to you by the government because you are a parent looking after your child.

 

The parenting allowance is not depedant on how much you spend on your child, for example if you spend more than your receive the government does not increase your allowance, nor does it decrease your allowance if you do not spend as much as you receive.

 

Any expense for oneself or another person, even for another family member is considered an expense that is private and or domestic in nature and not an allowable deduction, unless that expense is an allowable deduction under specific taxation legislation, which yours is not.

 

If we use your reasoning then anyone in receipt of any type of allowance / pension can claim any private deductions against their allowance / pension, but that is not the case.  For example the age pension is given to a person that is or is over a certain age (and meets other requirements) and therefor under your reasoning because they meet the age criteria they get an age pension so they can claim private expenditure against that pension because they need to maintain themselves otherwise they would not be alive and if they are not alive they would not get the age pension, but in reality they can not claim their own private expenditure against that age pension or any other income. 

 

If you need further assistance pls phone the ATO on 13 28 61

 

 

 

 

 

 

 

 

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Most helpful response

ATO Certified Response

Anonymous

Replies 0

The parenting allowance is paid to you by the government because you are a parent looking after your child.

 

The parenting allowance is not depedant on how much you spend on your child, for example if you spend more than your receive the government does not increase your allowance, nor does it decrease your allowance if you do not spend as much as you receive.

 

Any expense for oneself or another person, even for another family member is considered an expense that is private and or domestic in nature and not an allowable deduction, unless that expense is an allowable deduction under specific taxation legislation, which yours is not.

 

If we use your reasoning then anyone in receipt of any type of allowance / pension can claim any private deductions against their allowance / pension, but that is not the case.  For example the age pension is given to a person that is or is over a certain age (and meets other requirements) and therefor under your reasoning because they meet the age criteria they get an age pension so they can claim private expenditure against that pension because they need to maintain themselves otherwise they would not be alive and if they are not alive they would not get the age pension, but in reality they can not claim their own private expenditure against that age pension or any other income. 

 

If you need further assistance pls phone the ATO on 13 28 61