ATO (tax office) payments by credit card

[philiplin78]

Per my calcs points are cheaper thru WBC Black MC at 0.625 pts per $1 with 0.48% cost rather than Black Amex at 1.5 pts per $1 at a cost of 1.45%.

Or are you referring to some other card, or is my maths wrong?

I think what Cove is saying is that some people are happy to pay for a bit more fees in return for a lot more points, 2.388 times more points on Black Amex than Black Visa

 

[philiplin78]

KLN, I have been paying Workers Comp with Amex/Visa since 2008..depending on which company you use. I have CGU which now only takes Visa.

 

[burmans]

Per my calcs points are cheaper thru WBC Black MC at 0.625 pts per $1 with 0.48% cost rather than Black Amex at 1.5 pts per $1 at a cost of 1.45%.

Or are you referring to some other card, or is my maths wrong?

The point here though is that while you may get the points cheaper you get much less points. Cove was pointing out that Amex gives more points and you have a much higher cutoff. The marginal cost is extra 0.875 pts with 0.93% cost, i.e. just over 1c /point but if tax deductable ~ .55c/point.

For me worth getting the higher no. of points even if at a slightly higher cost/point.

 

[jamesD]

I think what Cove is saying is that some people are happy to pay for a bit more fees in return for a lot more points, 2.388 times more points on Black Amex than Black Visa

The point here though is that while you may get the points cheaper you get much less points. Cove was pointing out that Amex gives more points and you have a much higher cutoff. The marginal cost is extra 0.875 pts with 0.93% cost, i.e. just over 1c /point but if tax deductable ~ .55c/point.

For me worth getting the higher no. of points even if at a slightly higher cost/point.

Thanks - got it!

 

[Jack_OC]

Thanks Jack 3193,

Did you put the 120k through in one go? I just applied the Altitude Black online and got an instant approval for 25k, do I just top it up with credit payment first?

No, but all in the space of a week. Started with a $1k tester, waited to see if points posted, then $25k, then a couple of $50k-ish amounts. I topped up in credit before each payment, as it was a personal tax bill and per ATO rules you can only claim the fee as a deduction if you do not "borrow" the funds (but this rule does not apply for other types of tax payments). At one point my card was $70k in credit but I still got the points.

 

[philiplin78]

Thanks Jack for sharing how you hammer the card...

for the time being until i receive my new Altitide Black i will just put them on my AMEX Platinum but that will get shut down, according to Cove, on 21 July

 

[asg29e]

Thanks Jack for sharing how you hammer the card...

for the time being until i receive my new Altitide Black i will just put them on my AMEX Platinum but that will get shut down, according to Cove, on 21 July

Not quite shut down like Citi cards but at only 0.5pts/$ while paying 1.48% it is as good as.

 

[DaveB]

KLN, I have been paying Workers Comp with Amex/Visa since 2008..depending on which company you use. I have CGU which now only takes Visa.

Allianz WC also good for Visa and no fees.

 

[cove]

Citi Select is off for ATO.
WA payroll tax is still a NO but land tax in WA is a YES but only on Visa and MasterCard.
Superannuation is a maybe and workers comp is a maybe. Our super goes through a clearing house so that is a NO. Our workers comp company fee to take Visa/MasterCard is too high.
I activated my WBC Altitude Black today and it has a large limit. My WBC Kris Platinum limit is larger and they have always paid points on ATO.

JamesD you are correct with your maths but if you really,really want an SQ Suites Saver ride make sure you have enough points as many on AFF need as many points as they can get so paying almost 1 cent per point versus less points at 0.768 cents per point can still make a lot of sense.

 

[attimo69]

so, I had a nice discussion with Investec Bank guy, (specialist bank - Doctors, Dentists, Vets - high income - low risk) They stopped ATO/QFF points (recently) after what was basically abuse of the system. Eg. people with $50K credit limit, paying their card $200K into credit, then paying ATO. He said that they were "haemorrhaging" money. (They still have to buy the points from Q ) .
He admitted that the 'government charge' wording is ambiguous and that they had changed their T&C's to reflect this. Now, much more specific. I haven't checked it, but I assume paying TAX at ATO is now specifically excluded from points earn.

So, I guess, this is a word of warning, especially for those aiming to maximise their points on, for eg, Wow EDR. If you put ALL your ATO onto it, and very little of your regular spend on it, then you will get 3 months of points, then ruin it for EVERYONE.

I imagine the thing that annoys them THE MOST is people abusing the system, by paying their CC into credit, then 'buying' much more than they can afford (according to their credit limit) . I suspect, that if people only spent at the ATO within their credit limit and used the cards for other purchases too, then it wouldn't be such a problem.

If you want to maximise your points, how about upping your credit limit........?

Anyhow, thanks for everyone's input, on this impossible to assimilate thread!

A

 

[Beta4Me]

Increase CC surcharge for ATO spend rather than cutting off points altogether. Is not that hard...

 

[attimo69]

Increase CC surcharge for ATO spend rather than cutting off points altogether. Is not that hard...

ATO sets the surcharge, not the bank......

 

[Beta4Me]

Increase CC surcharge for ATO spend rather than cutting off points altogether. Is not that hard...

ATO sets the surcharge, not the bank......

CC companies can add a special fee or something to it if they want to like with forex?

But, what I meant was renegotiate the fee arrangement with the ATO. The ATO does not set the surcharge the banks charge simple what the payer has passed on to them.

 

[Jack_OC]

They stopped ATO/QFF points (recently) after what was basically abuse of the system. Eg. people with $50K credit limit, paying their card $200K into credit, then paying ATO. He said that they were "haemorrhaging" money. (They still have to buy the points from Q ) .

This doesn't really make sense. Yes they have to buy the points, but they also get paid a fee (a % of the transaction). So either the fee is enough to cover the cost of the points and still make them money, or it's not. If it is, every dollar one of their customers spends makes them money, and therefore the more they spend, the better. If it's not, every dollar one of their customers spends costs them money. I have to assume it's not the latter, or they would want everyone to stop using credit cards altogether!

Also, it would be very easy for them to change the rules so that you get no points if your account is in credit, or more than a certain amount in credit (some banks already do this).

So I'm afraid this comes across as a bit of a lame excuse from your banker friend.

I suspect the truth is that wherever possible banks want to collect their fees but not award points, thus maximising their profits. There are few scenarios where they can legally do this, so many are starting to exploit this one.

 

[Beta4Me]

If it's not, every dollar one of their customers spends costs them money. I have to assume it's not the latter, or they would want everyone to stop using credit cards altogether!

It is very much "the latter" as the fees they get from the ATO are absurdly low compared to most companies that accept CCs.

 

[Jack_OC]

It is very much "the latter" as the fees they get from the ATO are absurdly low compared to most companies that accept CCs.

Are you sure? If so, why would any credit card company award points for any ATO transaction? I just don't see how they can logically say they're ok with losing money on the occasional ATO transaction, but they'll draw the line if you overdo it. I'm willing to accept that they may make a smaller profit on ATO transactions (after awarding points), but not that they make a loss.

 

[FrankC]

It is very much "the latter" as the fees they get from the ATO are absurdly low compared to most companies that accept CCs.

I wonder how much fee do other big companies pay for accepting CCs comparing to ATO, including those that do not surcharge, like the supermarkets. Are their fees much higher than ATO that banks have no problem awarding points?

 

[adrian]

Okay, so my partner received the dreaded WOW cut-up-your card letter today. I obviously pushed it too hard, despite all the warnings on this thread

Not to worry, was good while it lasted. At least they posted all the points from last months transactions. I still have my card, but might tread a bit lighter from here...

 

[jamesD]

Okay, so my partner received the dreaded WOW cut-up-your card letter today. I obviously pushed it too hard, despite all the warnings on this thread

Not to worry, was good while it lasted. At least they posted all the points from last months transactions. I still have my card, but might tread a bit lighter from here...

Are you able to give us a ball park indication of much use you put through it?

 

[Mattyana2003]

Okay, so my partner received the dreaded WOW cut-up-your card letter today. I obviously pushed it too hard, despite all the warnings on this thread

Not to worry, was good while it lasted. At least they posted all the points from last months transactions. I still have my card, but might tread a bit lighter from here...

Did you spend up big last month on ATO?