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Centrelink, Help, Child Support, Medicare Levy

The amount you salary package is never subject to income tax. That is the tax law. However, what you earn is also relevant for other purposes such as Centrelink Payments (eg. Family Tax Benefit A and B), HELP repayments, child support payments and Medicare Levy Surcharge.

In summary, salary packaging

  • does NOT impact your Centrelink entitlement (but you need to tell Centrelink the right information. Advantage can help);
  • does impact your HELP payments. To calculate how much, Click here;
  • does impact your child support payments. You will pay more; and
  • may result in a Medicare Levy Surcharge, but only if you are a high income earner (> $90,000 from 2014/15).

Since 1 April 2016, Holiday Accommodation (venue hire) and Meal Entertainment have been reportable fringe benefits.

For example, if you salary package the maximum benefit ($2,650) the reportable value is $5,000 ($2,650 x 1.8868). A value will first appear on your 2018/2019 Payment Summary.

For more information, download a fact sheet.

  • Fact Sheet - Centrelink/Child Support
  • Fact Sheet - HELP/Education debt (Hospital, Ambulance Services only)
  • Fact Sheet - Tax Return (Hospital, Ambulance Services only)
  • Fact Sheet - HELP/Education debt (all other employees)
  • Fact Sheet - Tax Return (all other employees)

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