How does salary packaging with a HECS debt work?
The same fundamental principles apply – you are paying for items such as living expenses with your pre-tax income, therefore being taxed less and having more in your pocket.
Because your overall income situation changes with consideration of the ‘benefits’ you receive from salary packaging, your HECS repayments will need to increase.
So, not only will you benefit with more take-home pay in your pocket today, but you’ll also be better off in the future thanks to paying off your HECS debt sooner!