From 1 April 2016, legislative changes were made to Entertainment Benefits, resulting in these now being a Reportable Fringe Benefits on an individual’s PAYG payment summary.
Although salary packaging reduces the amount of tax you are required to pay, it does increase the reportable income for calculations of education debts payments. Due to the recent changes, if you salary package towards Entertainment Benefits throughout the year, this could now result in an increased Education Debt repayment at the end of the financial year.
On commencement of salary packaging, if you have an education debt (HELP, HECS, VET, etc.), it is strongly recommended that you arrange for additional tax be put aside by Payroll each pay from your gross income to cover the potential Education Debt repayment at tax time.
If you have an education debt, currently participate in Entertainment Benefits (or plan to in the future) and would like an assessment and potential re-calculation of your current arrangements, please contact AccessPay.
We can provide a tax re-calculation that can then be provided by you to Payroll directly.
Contact the AccessPay National Advisory Centre:
Phone: 1300 133 697