What is the effect on my Payment Summary (Group Certificate)?
Any variation in your gross salary, as a result of substituting packaged benefits for cash salary, will be reflected on your Payment Summary, with the gross salary and PAYG tax payable being reduced accordingly. The grossed up taxable value of some fringe benefits is required on the group certificate and then included in a field in your income tax return. It is important to understand that you are not then subject to income tax on this value. The only reason this is included is for the calculation of any Medicare levy surcharge and superannuation surcharge (if applicable) and for determining other Government income tested payments – such as child support liability and family allowance payments. Most Government agencies use the grossed up value of fringe benefits, as reported on the group certificate, for income tests, including the following:· Superannuation contributions surcharge; · Child support obligations; · Medicare levy surcharge; · Higher Education Contribution Scheme repayment
