Dec 21 2015
Do you have a HELP/HECS debt?
Did you know that Reportable Fringe Benefits have the potential to impact on your HELP/HECS minimum repayments?
Meals & Entertainment Benefits will now be reportable on your 2016-2017 payment summary as outlined in our previous article’s FAQ and hence will be included in your Reportable Fringe Benefits amount. This may therefore impact your HELP/HECS minimum repayments.
The Australian Taxation Office (ATO) considers the following as HELP/HECS repayment income:
– Your taxable income for an income year; PLUS
– Any amount your taxable income has been reduced by a net rental loss; PLUS
– Your total reportable fringe benefits amounts shown on your Payment Summary.
To ensure that you are prepared for the upcoming changes, you will need to advise your payroll department to calculate your HELP/HECS on your total estimated income, including your Reportable Fringe Benefits amount (which now includes Meals & Entertainment benefits). To do so, you should complete an ATO form called Withholding Declaration Upwards Variation and supply it to your Employer. This form can be obtained from the ATO website.
For further information specifically associated with your personal HELP/HECS minimum repayments and your Reportable Fringe Benefits amount, we recommend that you seek independent financial advice from your financial adviser or your accountant.