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I have a HECS / HELP Debt. Is there anything I should should know before entering into a motor vehicle packaging arrangement?

April 26, 2017Arrangement debt entering HECS help motor packaging vehicle

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I have a HECS / HELP Debt. Is there anything I should should know before entering into a motor vehicle packaging arrangement?

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• Yes. As outlined above, reportable fringe benefits are included in income tests such as HECS/HELP repayments. • The taxable salary that you are paid on a fortnightly basis will be assessed against the HEC/HELP repayment thresholds and the correct amount of PAYG tax will be calculated on those amounts. However PAYG tax will not be calculated to include any reportable fringe benefits. When the ATO assess your HECS/HELP repayment situation and include any reportable fringe benefits you may end up with an amount to be paid. • Staff with HECS/HELP Debts should understand fully this potential issue or seek financial advice to assist them in fully understanding the effect of reportable fringe benefits on their HECS/HELP repayment.