ATO (tax office) payments by credit card

[drross]

1- YES

2 - Would prefer not to find out !

is the cut off re the new credit deal 5 days or 7 days

 

[JohnK]

2 - Would prefer not to find out !

It has happened to me. It goes to their internal collections department.

They try to scare you. They are illogical. They worry about the crums when they have the loaf in front of them. Sad indeed.

 

[wafliron]

If they get classed as a credit provider, presumably they will pay me interest when they charge me notional tax in advance. Nope. That'll never happen.

They'd also have become a member of an External Dispute Resolution scheme... oh the fun that could be had with that :evil:

is the cut off re the new credit deal 5 days or 7 days

Not sure if this is what you're asking, but the Act comes into force today - about 41 minutes ago assuming it's effective from midnight ADST!

 

[prozac]

It's a ripoff, taxation through inflation ! ...then to top it of when you get pi**ed off paying all that Land Tax and sell there is a truck load of CGT to pay in the one year.

Always make sure settlements are before December 31st or else !!

Yeah, just tackling the CGT issues now. Land tax is an iniquitous tax, driving long term property owners like myself out of the market thereby reducing the available rental stock.

 

[burrco]

I notice that Victorian State Revenue charges .33% surcharge for land tax payments etc on visa/mc, yet the ATO charges .42%. Does this imply that the ATO has built itself a <small> profit margin into the card fee? Why would the State Government be charged less merchant fees than the Federal Government?

 

[Newk]

I notice that Victorian State Revenue charges .33% surcharge for land tax payments etc on visa/mc, yet the ATO charges .42%. Does this imply that the ATO has built itself a <small> profit margin into the card fee? Why would the State Government be charged less merchant fees than the Federal Government?

I think the "profit" in the ATO system may be made by Optus who provide the payment portal. Somewhere way back in this thread there are musings about why the ATO doesn't make their own portal

 

[wafliron]

I think the "profit" in the ATO system may be made by Optus who provide the payment portal. Somewhere way back in this thread there are musings about why the ATO doesn't make their own portal

Correct. 0.33% is the merchant rate for government organisations with both Visa and Mastercard, anything on top of that is someone making a "profit". In the ATO's case I'm pretty sure they say that they only pass along their costs, which would imply Optus are picking up the difference for administering the payment platform.

 

[wafliron]

They have to fund the points somehow...seems fair enough IMHO.

The points are funded by your CC issuer(s), not the ATO or Optus.

(I've been thinking for a while that I should offer to build / run a payment portal for the ATO on a 0.08% margin instead of Optus' 0.09% - I'm sure that margin on cove's tax payments alone would easily fund the development and operating costs )

 

[amaroo]

The points are funded by your CC issuer(s), not the ATO or Optus.

(I've been thinking for a while that I should offer to build / run a payment portal for the ATO on a 0.08% margin instead of Optus' 0.09% - I'm sure that margin on cove's tax payments alone would easily fund the development and operating costs )

Oops.....my bad

 

[cove]

I read today that the ATO are considering putting slow payers and non payers into the credit reporting system.
Unfortunately that would affect at least one million of our citizens who would then have trouble getting credit. There appears to be about 20 billion overdue.
Now that dwarfs my numbers and I pay a few days early.

 

[JohnM]

Now that dwarfs my numbers.

Are you sure about that cove? Could be just a rounding error :mrgreen:.

 

[basso]

Correct. 0.33% is the merchant rate for government organisations with both Visa and Mastercard, anything on top of that is someone making a "profit". In the ATO's case I'm pretty sure they say that they only pass along their costs, which would imply Optus are picking up the difference for administering the payment platform.

0.33% is the interchange rate. The merchant rate will be higher than this.

 

[wafliron]

0.33% is the interchange rate. The merchant rate will be higher than this.

Perhaps a terminology issue on my end - but I'm pretty confident if the ATO directly processes a CC payment (via, e.g., the RBA, which I would assume wouldn't mark-up to other government agencies), they will get charged 0.33% of the amount?

 

[hossein_au]

So I often pay the Ato 7 days late to take advantage of the credit card interest free period does that mean my credit rating is stuffed not that I'm that bothered as I'm not anticipating taking out any more loans

Why don't you just call up your CC issuer and adjust the reporting cycle to better align your ATO commitment?

 

[burmans]

is the cut off re the new credit deal 5 days or 7 days

Section 8.1 of the Credit Report Code, note some may apply a higher number of grace days (the below is a minimum, not a required no)

the grace period allowed by the CP for an overdue payment must be at least 5 days, beginning on the date that the CP's systems first classified the payment as being in arrears.

 

[burmans]

I read today that the ATO are considering putting slow payers and non payers into the credit reporting system.
Unfortunately that would affect at least one million of our citizens who would then have trouble getting credit. There appears to be about 20 billion overdue.
Now that dwarfs my numbers and I pay a few days early.

You would need to be a licensed credit provider to lodge repayment history (which is why telcos/utilities wont be). Not saying ATO could not go down that route but its not an easy job to become one.

ATO would have always been able to lodge defaults, that hasnt changed except that the rules have tighten considerable (must send a couple of notices, must be at least 60 days in arrears). The number of people in this position are a minor fraction of that one million you quote.

 

[prozac]

Section 8.1 of the Credit Report Code, note some may apply a higher number of grace days (the below is a minimum, not a required no)

the grace period allowed by the CP for an overdue payment must be at least 5 days, beginning on the date that the CP's systems first classified the payment as being in arrears.

Are you aware, once reported that you stay on the register for 5 years! Your debt reported after 5 days could be $5m or just $5, but you will have every CC or loan application refused for the next 5 years. Worse than being declared bankrupt.

 

[burmans]

Are you aware, once reported that you stay on the register for 5 years! Your debt reported after 5 days could be $5m or just $5, but you will have every CC or loan application refused for the next 5 years. Worse than being declared bankrupt.

Of course I am aware, you are assuming that the credit providers treat a debt of 0-30 days in the same way as being bankrupt. Many people miss a payment now and again and credit providers are well aware of this and dont regard this as being a huge problem, consistently being late is a bigger problem, bring consistently more than 30 days or 60 days becomes more serious, defaults more serious still and bankrupts you would not lend to.

The banks have vast statistical models from overseas about the relative risks and the risks just aren't people who occassionally miss a payment. I know its hard to believe but the banks really do want to lend people money, do they shut your account now if you are $5 in arrears?

 

[prozac]

Of course I am aware, you are assuming that the credit providers treat a debt of 0-30 days in the same way as being bankrupt. Many people miss a payment now and again and credit providers are well aware of this and dont regard this as being a huge problem, consistently being late is a bigger problem, bring consistently more than 30 days or 60 days becomes more serious, defaults more serious still and bankrupts you would not lend to.

The banks have vast statistical models from overseas about the relative risks and the risks just aren't people who occassionally miss a payment. I know its hard to believe but the banks really do want to lend people money, do they shut your account now if you are $5 in arrears?

Legislation changed yesterday to just 5 days.

 

[amaroo]

Can't see any organisation worrying about people paying their bills late by 5-7 days. Geez, in the real world receiving payment anything under 30-60 days late - is classed as on-time!

I'm guessing their system would be hit with a tsunami of useless data if they were stupid enough to try...