Salary packaging is relevant to the amount of income tax you pay. It is also relevant to other Government entitlements and surcharges. If any of the circumstances outlined below are relevant, we strongly suggest you seek independent financial or taxation advice.
Do you have a HELP / HECS debt
Advantage need to be advised to ensure that sufficient income tax is paid to allow for the impact of Reportable Fringe Benefits on the income calculation. Advantage will advise you how much tax you should be paying so that you can contact payroll with the correct figure. Having a HELP/HECS debt is no longer a reason to not salary package.
Do you make Child Support Payments?
Salary packaging in some cases has an adverse impact on the amount of money you pay or you receive from the Child Support Agency, depending on how your income is assessed by the CSA. Please seek information from the salary packaging team before salary packaging, or if you're personal circumstances change.However, due to changes in taxation law and additional exempt benefits that may be salary packaged, it may be possible to develop a salary package that will not adversely impact Child Support payments.
Do you have Private Health Insurance?
If you do not have private health insurance, the Reportable Fringe Benefit may have an impact on the Medicare Levy Surcharge. Please seek information from the salary packaging team before salary packaging, or if you're personal circumstances change.
Do you salary sacrifice to Superannuation?
Advantage need to be advised as these arrangements affect your salary for the calculation of the share of tax savings (in some circumstances, depending on income, the share of tax savings is reduced).
Do you receive other benefits from your employer?
Benefits include private use / home garaging of motor vehicles, salary overpayments, HELP/HECS Loans, accommodation, including reimbursement of rent. If so, please advise Advantage. If your personal circumstances change, then also advise Advantage.