ATO (tax office) payments by credit card

[DaveB]

Unless the payment is tax deductible, I have a personal pain barrier of 1% CC fees, though no doubt any fee is worth it allowing you to travel in J/F for next to nothing.
.
Sure need to keep your wits about you keeping up the ever changing CC landscape - which ones pay points or at reduced rates, those that don't, keeping usage under CC flag limits, recharge caps, monthly and annual points limits. Life sure used to be simpler.... Now to finalise that Silversea Baltic cruise for next August.

 

[angusburns]

Hi DaveB,

"for next to nothing" - does this mean you only redeem ASA seats, or that you are not counting the $1,000 or so fees & charges to London, for example?

Just trying to optimise my points use.

Thanks!

Angus

 

[DaveB]

I don't count the fees which I typically incur on SQ, CX and QF bookings to the US or Europe. QF to Europe or the US never eventuates as invariably aren't prepared far enough ahead to get the few seats made available and also haven't gone near Heathrow the last few visits.
Recent bookings have been to 2xJ/F to CPH on SQ involving fees, 2xJASA's to SIN on QF using points only (booked before July and the phone only mess); 2xJ VA Reward full points to MXP in/DUB out on EY with a further two 'bought' tickets on same flights using Citi Reward points. My daughters trips to NY last year involved a combination of VA/DL full points with one coming back on CX/QF incurring fees.

 

[Gold Member]

Yes HSBC coughed up the points nicely

Wait, what!?? I rang them earlier and they clearly stated that the T&Cs prohibit any govt entity payment eligible for points earning. Are you saying the HSBC Plat card does in fact pay at 1:1?

 

[legroom]

Most of us would not ring to ask for approval / confirmation from the CC providers.

Find out the goings-on on AFF and then make up your own mind, I'd suggest.

Wait, what!?? I rang them earlier and they clearly stated that the T&Cs prohibit any govt entity payment eligible for points earning. Are you saying the HSBC Plat card does in fact pay at 1:1?

 

[cove]

Gold Member if you go HSBC just be aware that they don't like paying out points on ATO but they do.
I use the Woolies version of their card as it is uncapped and I mix up the ATO with lots of other stuff.
Have 3 cards in the family as separate accounts and on each account I have not exceeded $30,000 to ATO in a monthly billing cycle. These guys could cancel your card if you only give them say 5 ATO entries in a line on your monthly statement and nothing else.
HSBC are trying to make money and ATO does not fit in that category.

 

[Beta4Me]

Gold Member if you go HSBC just be aware that they don't like paying out points on ATO but they do.
I use the Woolies version of their card as it is uncapped and I mix up the ATO with lots of other stuff.
Have 3 cards in the family as separate accounts and on each account I have not exceeded $30,000 to ATO in a monthly billing cycle. These guys could cancel your card if you only give them say 5 ATO entries in a line on your monthly statement and nothing else.
HSBC are trying to make money and ATO does not fit in that category.

What are the other options? Qantas CU, BankWest, Macquarie & then Amex-based Big 4? Any others?

 

[Newk]

Most of us would not ring to ask for approval / confirmation from the CC providers.

Find out the goings-on on AFF and then make up your own mind, I'd suggest.

a thousand "likes"
to anyone thinking of phoning the banks, or even asking here, may I suggest that you read as much of this thread as you can before you do--- and then don't--- if you get my drift.
It's bad enough that we are "googleable" and that the companies undoubtedly read these sites

 

[Deleted User]

Made a quick visit to the ATO payment portal earlier today, after all if the card is an "everyday" credit card, I guess I should use it everyday

 

[scheps]

Just used EDR today as well. Never really know how much it can be pushed before the bad news comes. I guess that will come one day....

 

[Gold Member]

a thousand "likes"
to anyone thinking of phoning the banks, or even asking here, may I suggest that you read as much of this thread as you can before you do--- and then don't--- if you get my drift.
It's bad enough that we are "googleable" and that the companies undoubtedly read these sites

C'mon, I'm not an idiot. I didn't ring them and tell them about matters spoken on AFF or any other benefits etc, I simply enquired as to the points earning eligibility of government based entities - end of story.

I've been reading this thread for some time and wasn't entirely sure about the card in question, hence why I clarified the official stance with the bank. I will edit/delete my original post if that appeases?

 

[Newk]

C'mon, I'm not an idiot. I didn't ring them and tell them about matters spoken on AFF or any other benefits etc, I simply enquired as to the points earning eligibility of government based entities - end of story.

I've been reading this thread for some time and wasn't entirely sure about the card in question, hence why I clarified the official stance with the bank. I will edit/delete my original post if that appeases?

Gold Member, no need to appease me, it's all cool.
The truth of it is that the CSO you get on a help desk is very unlikely to know all the deep ins and outs of the program. My sincere apologies to you if you went beyond the phone help centre
So usually people who phone get all confused when they get told something that doesn't quite add up with they have heard or read on AFF. And then they post again asking for clarification!
I accept that the cat is well and truly out of the bag for ATO, so it's certainly no biggie.
But still for some things (???? even this) a big read and then maybe PMs MAY be a better way to go than ringing the help desk.
It's purely MHO and no more or less valid than yours

and you know: sometimes you just have to blast away and try stuff and see what happens....that's how a lot of the stuff on here (and not on here) gets found out

 

[cove]

Well I tried hard to not phone Citi and that still ended badly for some of us.
BankWest Platinum is running ok as are some Westpac cards like their new Black ones.
Dont know about the others.

 

[Gareth]

OK, I'm thinking of paying with my Black Westpac AMEX to get more points (x3) c/w MC (at 1.25), should I do it in big hit (tens of thousands) or smaller transactions - do you think Westpac would look at it any differently?

 

[cove]

Westpac have never called and those points halve as they transfer out of Altitude Black.
This month I did a 50k and a 45k on one card and no issues as my credit limit is a good size.

 

[angusburns]

Thanks DaveB, good to know. I sort of see FF seats with fees as a business class seat for the price of a (very) cheap economy seat for the price of the fees. So not free, more like an upgrade - good value I think.

 

[cj0325]

Is anyone else on here a little concerned about the possibility of incurring an FBT liability for points earned relating to business expenditure... particularly in relation to ATO payments where a tax deduction is being claimed on the surcharge?

 

[Gold Member]

FFPs and loyalty programs specifically state in their T&Cs that their points have $0 value so no tangible (tax accountable) benefit is gained.

 

[ComeFlyWithMe]

Is anyone else on here a little concerned about the possibility of incurring an FBT liability for points earned relating to business expenditure... particularly in relation to ATO payments where a tax deduction is being claimed on the surcharge?

In short, no.

If you really want to get into it, read ATO/Payne: http://law.ato.gov.au/atolaw/view.htm?docid=PSR/GA20044/NAT/ATO/00001

Makes for riveting bedtime reading.

Also, good luck putting a finite dollar value on a frequent flyer point. For tax purposes mine would be worth $0.000000000000001 each as for value, well...

 

[wafliron]

Is anyone else on here a little concerned about the possibility of incurring an FBT liability for points earned relating to business expenditure... particularly in relation to ATO payments where a tax deduction is being claimed on the surcharge?

It's a valid concern, and was discussed at some length earlier in the thread.

IIRC the ATO is a little unclear on it, but does indicate they may take some interest in cases where more than 200k (?) points are earned per year, or (might've been "and", not "or") in cases where points are being "manufactured" rather than accrued through "legimate" business travel and spend (so, ATO payments would probably fail this test). I think the ATO guidance also said the FBT-able value will be based on the commercial value of goods redeemed (so, value of equivalent commercial flights to those redeemed with points).

At the end of the day I guess it's a case of each to their own - there's an element of risk, and it's up to each individual to decide whether they're happy with that risk. In my personal case the vast majority of points I earn are burnt on travel that is at least majority work related, so my risk is low and I'm comfortable with it. But YMMV