ATO (tax office) payments by credit card

[noviceFF]

Amex $100 x 1.45% = $1.45 for 300 CBA pts = 150 QFF points or 0.96c per point

MCard $100 x 0.42% = $0.42 for 100 CBA pts = 50 QFF points or 0.84c per point


The general rule seems to be, if you need the points, pay with Amex, if you like the points, but don't want to spend a lot pay with Amex.

I am with WBC Altitude Black so I get 1.25 WBC points per $ on MC and 3 WBC points per $ on Amex, so MC is a much better deal.

WBC MC 0.673c/FF pt v Amex 0.966c/FF pt - Amex points cost 45% more than MC ones, but, of course, you get more points.

If I had, say, $100k tax to pay and I have lots of points, I would prefer to pay CC fees of $420 rather than $1,450 of cash now and would receive 125k WBC points, worth 62.5k KrisFlyer points I may use sometime in the future. Amex would get me 150k points for $1,450.

If you need the points to get enough to redeem a flight, and they cost you 0.966c / point with Amex and you can then redeem them for a business class seat for 3-4c per point then you are still ahead.

Hope this helps.

Angus

I'm a novice and this is my first post so I apologise if I seem "green".
I have an AMEX platinum and recently had to pay off a tax bill worth a few thousand.
The fee for paying via AMEX was around 1.45%, for argument sake, let's say my tax bill was $1000, it means fee of $14.50. Now tax payments only get half points, meaning I get 500 points which are redeemable at 1:1, meaning each point is valued at 2.9c, which is expensive. I chose to pay via direct transfer.
I'm trying to accumulate as many points like everyone else, am I missing a trick here??
Thanks.

 

[Cruiser Elite]

Welcome to AFF nFF - enjoy the ride - if you absorb any degree of the fabulous content your fellow AFFers willingly provide here you will soon be a non-noviceFF.

No you are not missing a trick - the good 'ol days of tax pmts with Amex cards are long gone - yes .5 MR pts is all you will earn. Many have Bank/Amex co-branded cards which still yield 1.5pts/$1 - therefore <1c/pt.

 

[drross]

I'm a novice and this is my first post so I apologise if I seem "green".
I have an AMEX platinum and recently had to pay off a tax bill worth a few thousand.
The fee for paying via AMEX was around 1.45%, for argument sake, let's say my tax bill was $1000, it means fee of $14.50. Now tax payments only get half points, meaning I get 500 points which are redeemable at 1:1, meaning each point is valued at 2.9c, which is expensive. I chose to pay via direct transfer.
I'm trying to accumulate as many points like everyone else, am I missing a trick here??
Thanks.

Welcome to AFF. Great site. First question.. How many points did you get for the direct transfer? The credit card fee is tax deductible in some cases too.

 

[Deleted User]

Some will suggest that the Qantas Everyday Rewards Credit Card is good for transactions below $10k (0.42% Surcharge) 1pt:$1

 

[cove]

I used 3 different cards this afternoon. Two different MasterCards and one Amex for no other reason than sharing the love.
Nothing for Citi and nothing for a direct branded Amex cards for the ATO.

 

[ComeFlyWithMe]

Westpac still works for me as does Woolies for some reason.

+1 agreed...

 

[kevrosmith]

Must be tax-payment time again... There's activity on this thread. Thanks for the reminder...

 

[Deleted User]

Must be tax-payment time again... There's activity on this thread. Thanks for the reminder...

I have already prepaid mine in December...couldn't resist early payment to harvest more QFF too book more JASA's to take advantage of the DSC offer

 

[Pushka]

I'm waiting until Feb 28 for mine.

 

[Deleted User]

I have already prepaid mine in December...couldn't resist early payment to harvest more QFF too book more JASA's to take advantage of the DSC offer

I'm waiting until Feb 28 for mine.

I've already prepaid that one...!

 

[noviceFF]

Welcome to AFF. Great site. First question.. How many points did you get for the direct transfer? The credit card fee is tax deductible in some cases too.

Thanks for the advice Cruiser Elite and drross.
Got the AMEX platinum, $1200 per yr fee (hefty). But came with 80,000 points, free Virgin flightsx2 (via subsidary reserve card) and Virgin lounge access. It covers the fee itself me thinks. How would the credit card fee be tax deductible? (If I pay my business related expenses on it?)

 

[Pushka]

The fee may be an expense incurred conducting your business. Check with your accountant.

 

[angusburns]

If you only have small tax bills, I think that the current wisdom is to get a Woolworths Mastercard which only cost 0.42% to pay to ATO and gives you 1 FF point per $.

Or use a bank-branded Amex (ANZ, WBC, NAB etc) that still pays 1.5 points per $1, at a cost of 1.45% is about 1c/FF point.

I don't think anyone actually uses an Amex branded Amex card to pay tax on any more...

If I am wrong then no doubt someone else will let us know!

Hope this helps.

Angus

 

[cove]

noviceFF DO NOT USE THAT CARD TO PAY THE ATO .You get half a point per dollar which means the points are costing you an amazing 2.9 cents each.

 

[serfty]

Thanks for the advice Cruiser Elite and drross.
Got the AMEX platinum, $1200 per yr fee (hefty). But came with 80,000 points, free Virgin flightsx2 (via subsidary reserve card) and Virgin lounge access. It covers the fee itself me thinks. How would the credit card fee be tax deductible? (If I pay my business related expenses on it?)

Credit card payment fee deductibility guidelines | Australian Taxation Office

Discussion here:

www.australianfrequentflyer.com.au/...ffice-payments-credit-17109-5.html#post355520

 

[noviceFF]

noviceFF DO NOT USE THAT CARD TO PAY THE ATO .You get half a point per dollar which means the points are costing you an amazing 2.9 cents each.

THAT CARD meaning AMEX or Woolies MC??

 

[ComeFlyWithMe]

THAT CARD meaning AMEX or Woolies MC??

Amex branded Amex = no go.

 

[cove]

Yes all American Express cards issued directly by American Express only earn half a point per dollar so they are selling you points at 2.9 cents each which is no good.
So Centurion,Ultimate,Gold,Platinum,Green and others are now not good for ATO.
Cobranded Big4 Bank Amex cards still work better but be careful with points capping and points earning rates on their cheapest annual fee Cards.
Woolies,HSBC,BankWest have cards that work but do try to be fair by giving them lots of personal business as 0.42 cents a point needs to be cross subsidized.

 

[ComeFlyWithMe]

Yes all American Express cards issued directly by American Express only earn half a point per dollar so they are selling you points at 2.9 cents each which is no good.
So Centurion,Ultimate,Gold,Platinum,Green and others are now not good for ATO.
Cobranded Big4 Bank Amex cards still work better but be careful with points capping and points earning rates on their cheapest annual fee Cards.
Woolies,HSBC,BankWest have cards that work but do try to be fair by giving them lots of personal business as 0.42 cents a point needs to be cross subsidized.

Adding to this, I believe someone did get shut down on the Woolies card due to abuse as mentioned in an earlier post.

 

[Jacques Vert]

Yes all American Express cards issued directly by American Express only earn half a point per dollar so they are selling you points at 2.9 cents each which is no good.
So Centurion,Ultimate,Gold,Platinum,Green and others are now not good for ATO.
Cobranded Big4 Bank Amex cards still work better but be careful with points capping and points earning rates on their cheapest annual fee Cards.
Woolies,HSBC,BankWest have cards that work but do try to be fair by giving them lots of personal business as 0.42 cents a point needs to be cross subsidized.

And QSCU; at least in my experience. JV