You can salary package up to $15,900 for living expenses (or $9,010 if you work for a public or private not-for-profit hospital) and up to $2,650 for meals and entertainment. Although this is likely to increase your student HELP repayments, you could still be better off.

Here’s how it works for Vanessa.

Vanessa is an administration assistant, earning $45,000 a year with a student HELP debt. As Vanessa works for a not for profit organisation, she can package up to $15,900 for living expenses. Vanessa’s Reportable Fringe Benefit Amount takes her income above the threshold and means she has to start making HELP repayments of $1,478 a year.

This payment is covered by the tax saving that Vanessa makes by salary packaging (i.e. $4,119), meaning she is effectively paying off her student HELP debt with money she would otherwise be paying to the Australian Tax Office as tax.

So by salary packaging the full $15,900 towards living expenses, Vanessa reduces her taxable income, starts to pay off her HELP debt and still increases her take-home pay by $2,941.

Here’s a breakdown:

Vanessa starts to pay off her HELP debt AND increases her take-home pay by $2,941.