Can salary sacrificing a motor vehicle affect any other Government payments?
• Yes. Reportable fringe benefits (see Payment Summary Question above) are included by most Government agencies in income tests such as family allowance payments, child support obligations, Medicare levy surcharge, HECS/HELP repayments, etc. • By electing to make an after tax contribution towards the cost of the motor vehicle via an ECM arrangement the taxable value of the vehicle can be reduced or eliminated. Please seek financial advice if you receive any such payments or if you are uncertain as to the effect of salary sacrificing a motor vehicle or adopting an ECM arrangement. • Some government agencies such as Centrelink require people receiving benefits to disclose all income and packaged benefits and also when there are changes to such arrangements.
