When you choose to implement salary packaging there may be circumstances where you will need to report a higher income to the government. An example of these circumstances include Centrelink allowances, HELP/HECS debts or Child Support.
At the end of each financial year, the payment summary you receive from your employer will show your total earnings which may include salary and reportable fringe benefits.
Eastern Health as a Public Hospital is FBT Exempt under section 57A of the Fringe Benefits Assessment Act 1986. What this means is Centrelink payments including Family Tax Benefits will not be affected by salary packaging, although you still need to let Centrelink know your income and salary packaging amounts.
For Centrelink to correctly assess the salary packaging amount, employees must advise Centrelink that Eastern Health are FBT Exempt under section 57A of the Fringe Benefits Assessment Act 1986. Centrelink will adjust this figure down to the "cash" value in their assessable income calculations, instead of the “grossed up” amount.
For employees with a HELP debt, use some of the extra take home pay towards reducing your HELP debt.
The good news is the extra contributions will pay off your tuition faster, rather than giving it away to the tax man.
You must notify payroll in writing (via email) the additional amount per fortnight that you would like to set aside for your HELP repayments.
A guide for employees to help understand more about your HECS/HELP repayments.