ATO (tax office) payments by credit card

[kevrosmith]

Re: Credit cards and FF points for ATO transactions

Status update: can confirm NAB Velocity Rewards Premium AMEX is still paying points on ATO payments this month.

 

[cove]

Re: Credit cards and FF points for ATO transactions

There is no change that I have heard about to do with Westpac Kris Flyer Platinum.

 

[Kilo]

Re: Credit cards and FF points for ATO transactions

What is the thinking on using Visa/MC (0.42% fee) vs Amex (1.45%) ?
Visa/MC seems to provide better points per fee, assuming you have enough tax to pay.

 

[KLN]

Re: Credit cards and FF points for ATO transactions

Hi Kilo,
i prefer to use the Amex even had the higher rate, but only for business transactions with the ATO, depending on your advice or on how you read the t & c's on the ATO website, your surcharge maybe tax deductible

 

[amaroo]

Re: Credit cards and FF points for ATO transactions

What is the thinking on using Visa/MC (0.42% fee) vs Amex (1.45%) ?
Visa/MC seems to provide better points per fee, assuming you have enough tax to pay.

AMEX as we're accumulating for 4 ... if I was single or just a couple - I'd be using the MC.

 

[Kilo]

Re: Credit cards and FF points for ATO transactions

The advice I have received is that the surcharge is deductible as a business expense - but as a percentage so ultimately I incur more costs using Amex.

 

[diningdecadence]

Re: Credit cards and FF points for ATO transactions

What is the thinking on using Visa/MC (0.42% fee) vs Amex (1.45%) ?
Visa/MC seems to provide better points per fee, assuming you have enough tax to pay.

whilst the golden goose is dead for me now (RIP altitude black), i used AMEX to increase points earn whilst i knew the potential still existed. i.e. yes i knew on a per point basis it cost more, but the rate of earn was also faster.

 

[ComeFlyWithMe]

Re: Credit cards and FF points for ATO transactions

The advice I have received is that the surcharge is deductible as a business expense - but as a percentage so ultimately I incur more costs using Amex.

As long as you didn't "borrow" the money from the bank (read: put your CC into credit for that amount) then the fee is tax deductible. Check with your own accountant, this is not financial advice and as always YMMV...

 

[Beta4Me]

Re: Credit cards and FF points for ATO transactions

As long as you didn't "borrow" the money from the bank (read: put your CC into credit for that amount) then the fee is tax deductible. Check with your own accountant, this is not financial advice and as always YMMV...

IIRC that was only with respect to personal tax. With a business, it didn't apply. I *think*.

 

[ComeFlyWithMe]

Re: Credit cards and FF points for ATO transactions

IIRC that was only with respect to personal tax. With a business, it didn't apply. I *think*.

See here: https://www.ato.gov.au/Business/Ded...it-card-payment-fee-deductibility-guidelines/

It states:
-----
The CPF is deductible to the extent that:

you incurred it as a result of paying an income tax liability and you did not borrow money from your card provider to make the payment

you incurred it as a result of paying a goods and services tax, fringe benefits tax, luxury car tax or wine equalisation tax liability, and that liability arose in the course of gaining or producing your assessable income, or in the course of carrying on your business for the purposes of gaining or producing assessable income

you incurred it as a result of making PAYG withholding payments where you can claim a deduction for the wages and salaries that gave rise to the withholding obligation

you incurred it as a result of repaying your student assistance loans and then only to the extent that the expenses you paid using the student assistance loans were themselves deductible

you incurred it as a result of repaying your employee's student assistance loan, the repayment is a fringe benefit, and the employee's wages are also deductible.

----
There is no such differentiation that I can see, but check with your accountant as YMMV.

 

[serfty]

See here: https://www.ato.gov.au/Business/Ded...it-card-payment-fee-deductibility-guidelines/
...
There is no such differentiation that I can see, but check with your accountant as YMMV.

each of those options should be read on an "or" basis.

Only one needs to be true for the fee to be deductible ... the second and third options do it for most businesses.

(If you look closely it is basically impossible for all to apply to any single circumstance. )

 

[ComeFlyWithMe]

each of those options should be read on an "or" basis.

Only one needs to be true for the fee to be deductible ... the second and third options do it for most businesses.

(If you look closely it is basically impossible for all to apply to any single circumstance. )

So on that basis the "borrowing" only applies to income tax payments?

 

[burmans]

So on that basis the "borrowing" only applies to income tax payments?

I'm no tax accountant but from my discussions with mine a fee takes on the nature in tax terms of the transaction the fee is charged for. Borrowing to pay your individual tax payment is NOT a deductible cost whereas for a business it is (in the course of carrying on your business for the purpose of production of assessable income).

 

[cove]

After almost 6 years on this thread our style of travelling has changed. Just imagine how difficult flying would be if it all ended.
Forget that thought as that could mean using money rather than miles/points.

 

[KLN]

Cove, hush your mouth, am starting to feel ill at that thought! physically shaking and having a panic attack here. hehehe

 

[ComeFlyWithMe]

I'm no tax accountant but from my discussions with mine a fee takes on the nature in tax terms of the transaction the fee is charged for. Borrowing to pay your individual tax payment is NOT a deductible cost whereas for a business it is (in the course of carrying on your business for the purpose of production of assessable income).

That's an interesting interpretation, which I like, but it differs the advice I received.

 

[cove]

Anyone else devastated by the ATO site being broken tonight? I had two 0.42% MasterCards ready but no dice.

 

[hossein_au]

Anyone else devastated by the ATO site being broken tonight? I had two 0.42% MasterCards ready but no dice.

I am (actually, have been) devastated by following this tread for ages looking for potential opportunities, but as an employer, still no dice ;-)

 

[cove]

It is ok hossein_au you get to keep the cash. The ATO is a partner of mine but they do bugger all to get their share of the partnership. Here I was trying an early start on the ten accounts that are due on 3rd March but no can do electronically tonight. Anyway tomorrow is another day and I would prefer not to call my ATO girlfriend as I prefer getting electronic receipts seeing I am paying so much for so many.
Once these bills are paid these particular credit cards are going to be attacked with titanium bladed scissors from 3M.

 

[hossein_au]

It is ok hossein_au you get to keep the cash. The ATO is a partner of mine but they do bugger all to get their share of the partnership. Here I was trying an early start on the ten accounts that are due on 3rd March but no can do electronically tonight. Anyway tomorrow is another day and I would prefer not to call my ATO girlfriend as I prefer getting electronic receipts seeing I am paying so much for so many.
Once these bills are paid these particular credit cards are going to be attacked with titanium bladed scissors from 3M.

That's cool; I am not really complaining per se. It would just be nice if I could start earning some decent number of FF points every once in a while, you know. And what I call a decent number of points is probably pocket change for some