The Turnbull government has backed down slightly on its family payments package, announcing more generous allowances for grandparent carers and single parents over 60 than previously proposed.
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Under a bill introduced to Parliament in October, grandparent carers with a youngest child 13 and over were to receive $1000 a year for family tax benefit part B, compared to the standard rate of about $2784 a year.
On Monday, Social Services Minister Christian Porter said the government had amended its plan after consulting the crossbench. A new bill, to be introduced this week, will see grandparent carers, great-grandparent carers and single parents aged over 60 continue to get the standard rate once a youngest child reached 13.
The changes will affect about 4000 single parents over 60 and about 4000 grandparent and great-grandparent carers.
"When we first announced the family tax benefit reforms, we said we were willing to listen to sensible observations," Mr Porter said in a statement.
The Social Services Minister said he would continue to talk to the crossbench "to work towards securing the passage of this important bill".
The government has already split its family payments package in a bid to get it through Parliament.
Labor has agreed to cutting family tax benefit B to couple families when their youngest child turns 13 but has rejected the rest of the package, which includes a cut to end-of-year family payments supplements, which are worth about $4 billion over four years.
The government needs six of the eight Senate crossbenchers on side to clear Parliament but so far, this level of support has not been forthcoming.
Independent Jacqui Lambie has said she will oppose the family payments changes and others on the crossbench have raised concerns about the impact of changes on single parents and low-income families.
Along with the cut to end-of-year supplements, changes still on the table include a cut in the rate of family tax benefit part B to single parents when their child turns 13.
The government is also seeking to boost payments to single income families with a child under one by $1000 a year and increase the maximum rate of family tax benefit part A by $10 a fortnight.
Under figures provided by the Department of Social Services to a Senate committee, 136,000 single parent families will be hit in the cut to family tax benefit part B when a youngest child turns 13. Of these about 80,000 families have an annual income of $40,000 or less.
Of the 1.5 million families who would lose their end-of-year supplements for family tax benefit part A, 632,900 have an income of $40,000 or less.
Of the 1.3 million families who would lose their end-of-year supplements for family tax benefit part B, 621,900 have an income of $40,000 or less.
Labor's spokeswoman for families and payments Jenny Macklin said Labor had rejected these cuts because low-income families would be "particularly hard hit".
"They are fundamentally unfair," she said.
Family tax benefit part A is paid per child, with the amount based on a family's income and the age of the child. Family tax benefit part B is paid per family and provides extra assistance to single parents and families with one income.
Senate debate on removing family tax benefit part B to couple families when their youngest child reaches 13 began on Monday evening.
