ATO (tax office) payments by credit card

[js]

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Summary:

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Currently payment can be made using the following link: ATO - Card Payment

More details here: Terms and conditions when making a credit card payment to the ATO

Card payment fee

A card payment fee applies to transactions made using this service. This fee is not subject to goods and services tax (GST) and is equal to the fee the ATO incurs from its banker.

The fee is a percentage of the tax amount being paid, based on the type of card used:

[TABLE="class: grid"][TR][TD]

Card type​

[/TD][TD]

Fee​

[/TD][/TR][TR][TD]Visa/MasterCard
(effective from 1 October 2011)[/TD][TD="width: 122"]

0.54%​

[/TD][/TR][TR][TD="width: 234"]American Express
(effective from 1 August 2012)[/TD][TD="width: 122"]

1.45%
​

[/TD][/TR][/TABLE]
This Credit Card fee may be tax deductable. See here: Credit card payment fee deductibility guidelines | Australian Taxation Office

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Hi,

I would have thought this was mentioned somewhere here already - and it probably is, but I couldn't see it..

So just in case this is new news, it seems the ATO is accepting credit cards for tax payments on a trial basis through to 17 April 2009.

$10,000 limit (per taxpayer, I'm assuming, rather than per transaction). 0.69% surcharge payable, and Visa and Mastercard only (sadly no AMEX).

ATO has some details of the trial on its website.

 

[ANstar]

I wish I'd known this a few weeks ago when I paid my 8k GSt bill!

 

[Flashback]

Hi,

I would have thought this was mentioned somewhere here already - and it probably is, but I couldn't see it..

So just in case this is new news, it seems the ATO is accepting credit cards for tax payments on a trial basis through to 17 April 2009.

$10,000 limit (per taxpayer, I'm assuming, rather than per transaction). 0.69% surcharge payable, and Visa and Mastercard only (sadly no AMEX).

ATO has some details of the trial on its website.

Damnit, I just paid a large tax bill :evil:

 

[Flashback]

I wish I'd known this a few weeks ago when I paid my 8k GSt bill!

Given we're now into Q2, I think I shall do my BAS a little earlier and give it a push through on the C/C

 

[ANstar]

Given we're now into Q2, I think I shall do my BAS a little earlier and give it a push through on the C/C

I might do that as well - is a bit of a pain as - but could be worth it for the points

 

[js]

Tell me about it... I paid > $75K in the past week or two :evil:

Mind you, at least some of it would have been capped due to their $10K limit (but still would have got through a fair bit over $10K due to different paying entities etc.....)

Anyway, if the trial goes well then it is conceivable they would add AMEX in future (with a higher surcharge, no doubt).

Interestingly the payment form seems to be outsourced to Optus, and when you type in an AMEX number it asks for the 4 digit CVV, although on the next screen gives a "Sorry, this merchant doesn't take that card type" message.

So it looks like it would be just an administrative decision for them to turn it on at some point. It would actually almost make me look forward to paying my tax bills :shock:

 

[Flashback]

I just noticed they don't take AMEX. Bummer.

Now to work out whether it's worth putting on the VISA or not.

 

[Bundy Bear]

Wow: Nice that I got my tax bill spread over more manageable easy to pay bite size pieces. I hope they extend it.

 

[drron]

Of course they would do it now.Just to spite me.For the first time since he was a boy drron paid no tax for the 2008 year.Same for mrsdrron and the super fund.So no CC points for me.
Unfortunately because no tax payable also missed out on the Fairy Ruddfathers second stimulus bonus.Missed it by that much!

 

[edman]

I didn't know about this and I'm an accountant... ATO have not mentioned it in any of their regular correspondence and updates, perhaps because it is still a trial.

I have >100k bills to pay soon, a mixture of GST/PAYG/company taxes, but I have trouble with the surcharge, there isn't a big gain to be had at say an average rate of 1c per point? Unless of course you can manage a better conversion ratio on particular redemptions. Will vary from person to person obviously.

Unfortunately for me its a moot point anyway, as my Citibank Platinum gets capped and they aren't taking Amex yet.

 

[JohnK]

Unfortunately because no tax payable also missed out on the Fairy Ruddfathers second stimulus bonus.Missed it by that much!

Isn't this stimulus bonus on hold until early next week as the legality of it has been challenged?

If stimulus bonus goes ahead I wonder if I can do my tax return for 2007-2008 now to get the $900 bonus and then later on catch up tax returns for 2004-2005, 2005-2006 and 2006-2007. :-|

 

[Flashback]

Isn't this stimulus bonus on hold until early next week as the legality of it has been challenged?

If stimulus bonus goes ahead I wonder if I can do my tax return for 2007-2008 now to get the $900 bonus and then later on catch up tax returns for 2004-2005, 2005-2006 and 2006-2007. :-|

Not sure, I know some people who have already received their payment.

 

[JohnK]

Not sure, I know some people who have already received their payment.

I am not sure either. I think I will need to talk to my accountant. I am definitely entitled to the $900 bonus (I only had ~$10,000 taxable income last year) but I am behind in completing the tax returns.

 

[albatross710]

Not sure, I know some people who have already received their payment.

I think the people who have already received their payments have received them through qualifying for a Centrelink or Family tax benefit. The payment in April is for people whom qualify (only?) through their tax paying threshold.

I will take up the tax office on the credit card payment. A tax deductible expense, not essential for business, which will result in a personal benefit. That has got to have the Tax Commissioner tossing in his sleep.

It just doesn't make sense.

 

[Bundy Bear]

I am not sure either. I think I will need to talk to my accountant. I am definitely entitled to the $900 bonus (I only had ~$10,000 taxable income last year) but I am behind in completing the tax returns.

Go and see your accountant and get your tax return done. I think you have until 30 June 2009 to lodge them to still get the $900.

I do wonder how many people who haven't done tax returns in the last few years actually go and get them lodged so they do not miss out on the bonus.

 

[Flashback]

Go and see your accountant and get your tax return done. I think you have until 30 June 2009 to lodge them to still get the $900.

I do wonder how many people who haven't done tax returns in the last few years actually go and get them lodged so they do not miss out on the bonus.

Absolutely correct on your first point. Mine was lodged back in September, but wasn't due till March 31 (on which date I paid it) so I wonder how long it will take to receive my payment. I just scraped in on being eligible

 

[oz_mark]

Go and see your accountant and get your tax return done. I think you have until 30 June 2009 to lodge them to still get the $900.

I do wonder how many people who haven't done tax returns in the last few years actually go and get them lodged so they do not miss out on the bonus.

Probably quite a few - the $900 should just about pay the accountant fees. On the other hand not much incentive for folk not getting the $900 bonus to catch up.

 

[bushtuckerman]

I'm really looking forward to Uncle Fester's $900 handout. Its been a horrid year and $900 buys a lot of vodka 'n Red Bull in BKK.
Cheers
Bush

 

[edman]

I think the people who have already received their payments have received them through qualifying for a Centrelink or Family tax benefit. The payment in April is for people whom qualify (only?) through their tax paying threshold.

I will take up the tax office on the credit card payment. A tax deductible expense, not essential for business, which will result in a personal benefit. That has got to have the Tax Commissioner tossing in his sleep.

Correct in that the payments made so far are for those who qualify through family tax benefit.

From the point of view of tax legislation, nothing wrong with your second para. Could be argued on any number of things, in fact most credit card expenditure could fall under this if there are other options of paying. Not really any different to incurring interest on a business loan/ato debt and choosing to pay off non-deductible debt first. Of course, I would be telling the commissioner the primary reason for paying by credit card is NOT to accrue frequent flyer points if asked!

The tax office is looking at any way possible to maintain their income and reduce debtors, so its a small price to pay.

 

[serfty]

Absolutely correct on your first point. Mine was lodged back in September, but wasn't due till March 31 (on which date I paid it) so I wonder how long it will take to receive my payment. I just scraped in on being eligible

I have until May15th; my account is getting the final data this week ...