ATO (tax office) payments by credit card

[edman]

The only card to adjust ATO spend and not remove points earn altogether is Amex issued cards. I dread the day that .5 points at 1.45% merchant fee is the best option for us.

 

[cove]

We have new applications in process for HSBC and Qantas Credit Union CCs. HSBC has a 300,000 cap. My wife was eligible because HSBC did not sell her to Macquarie with the Woolies card sale.
Westpac Platinum Kris Flyer is going to pay 1.25 points per Amex dollar spent so that is 1.16 cents a point but they have closed off new applications. I can live with that but there is no warehousing of points so you have to watch out for expiring points with SQ. Westpac Kris has no limits.
The US Citibank card is paying 0.78 AA points per Australian dollar spent and with the 0.42% fee it is a good one.

 

[serfty]

I believe the issue relates to "Breakage" .. i.e. In this case the expected non redemption of a significant percentage the reward facility or at a lower value per point.

This would have been factored in by analysts at the margins in relation to profitability.

This occurs both with the airlines reward scheme which gets pressure when more points are redeemed than factored by their analysts and the financial institutions who are subsequently pressured by the airlines who want to increase points costs.

Those who earn points in dribs and drabs are more likely to not redeem points (and if they do, at less value cost per point) than those earning in bulk, especially when in large chunks.

It's similar thing as to what happened with the Westfield XS card when they were being purchased on points earning cards and redeemed 100% - that is not what is supposed to happen when breakage of up to 30% is expected.

With Millions of Rewards points a .01% variance from predictions can make a significant dent on the bottom line.

 

[Nizar]

This month and next that NAB Amex should get you up to 100,000 points cap at 1.5 points per dollar is how I believe it will work.

Is it already definitive that as of May the NAB QF Premium card will no longer be awarding full points on ATO payments ?
I read it here only for the NAB Velocity card ? I don't doubt that the QF equivalent will follow suit but not sure that this has been confirmed yet ?

 

[Scr77]

Is it already definitive that as of May the NAB QF Premium card will no longer be awarding full points on ATO payments ?
I read it here only for the NAB Velocity card ? I don't doubt that the QF equivalent will follow suit but not sure that this has been confirmed yet ?

A change to the NAB QFF premium card has not be made/notified as yet. My statement was issued on 28 Feb.

 

[Nizar]

A change to the NAB QFF premium card has not be made/notified as yet. My statement was issued on 28 Feb.

That's what I suspected but thanks for confirming

 

[diningdecadence]

banks are paying more than 0.42c/mile so this is a loss making exercise for them. (at least on the V/MC side of things)

 

[Cruiser Elite]

banks are paying more than 0.42c/mile so this is a loss making exercise for them. (at least on the V/MC side of things)

dd do you have intimate knowledge that they are indeed paying more than 0.42c/mile as you state?

 

[overtime2000]

I read the PDS not that long ago and seem to recall an exclusion on government charges but nothing ATO specific, so should be OK. There are points caps however.

Citi now has ATO specific clauses in their rewards T&Cs.

Also Premier is not free (or available) unless you qualify as a Premier customer and pay their monthly fee. This isn't hard to do but the fee is about $420 per annum ($35 per month).

Ahhh got it. Thanks for clearing that up regardin the Premier card.

Now I guess my options are either forking out $199 for the HSBC Plat Qantas card vs the free for life HSBC Plat Rewards plus
I pay about $80k to the ATO a year.

Pay $199 for 80,000 Qantas points + 2 Qantas club invites
or
No card fee + 80,000 HSBC points a year

Hmm, any recommendations/suggestions between the 2?

I suppose the $199 is a tax deductible expense since this card is purely for tax-paying purposes.

 

[deka2]

Ahhh got it. Thanks for clearing that up regardin the Premier card.

Now I guess my options are either forking out $199 for the HSBC Plat Qantas card vs the free for life HSBC Plat Rewards plus
I pay about $80k to the ATO a year.

Pay $199 for 80,000 Qantas points + 2 Qantas club invites
or
No card fee + 80,000 HSBC points a year

Hmm, any recommendations/suggestions between the 2?

I suppose the $199 is a tax deductible expense since this card is purely for tax-paying purposes.

overtime2000

Is the HSBC card 80,000 points or 20,000 points bonus?

 

[angusburns]

They are banning ATO because the ATO only charge 0.42% on tax payments by Visa, whereas the Average merchant service fee for Mastercard and Visa: 0.81%. (as at Jan 2014)

Read more: Excessive credit card surcharge update - CHOICE

I would suggest that the credit card companies make a loss, or at least have a much reduced margin, on ATO payments, which makes it not worthwhile for them.

So, as a result, most CC companies are banning or capping, and Amex has reduced to 0.5, the points paid per $ to the ATO.

​

 

[overtime2000]

overtime2000

Is the HSBC card 80,000 points or 20,000 points bonus?

no points bonus with the HSBC Rewards plus card
20000 sign up bonus with the Qantas card

What I am referring to is the 80000 points I will get each year for paying my 80000 tax bill
Ie.
Is 80000 qantas points + 2 qantas club invites worth paying $199 annual fee over the 80,000 HSBC points(non qantas) with no annual fee

I think on the HSBC rewards program - 20,000 points = $100 gift card

 

[Scr77]

There is a 20,000 QFF bonus at the moment for the HSBC plat card.

 

[edman]

80000 tax bill
Ie.
Is 80000 qantas points + 2 qantas club invites worth paying $199 annual fee over the 80,000 HSBC points(non qantas) with no annual fee

I couldn't see when I looked it, an option to redeem for airline programs for the Platinum card, it seems its just for Premier only. That would have it drop off the list as a viable option for me.

 

[edman]

Anyone know the points cap for ANZ Rewards Black/ANZ frequent Flyer Black? I cannot seem to locate this.

 

[Nizar]

Anyone know the points cap for ANZ Rewards Black/ANZ frequent Flyer Black? I cannot seem to locate this.

I thought it was uncapped ?

 

[angusburns]

Introducing ANZ Black, our most rewarding credit cards.
ANZ Rewards Black and ANZ Frequent Flyer Black offer you our highestuncapped point earn rates and exclusive travel benefits, including:

ANZ Black credit cards | ANZ

 

[edman]

Thanks for this, I thought that's what it was but couldn't see it.

 

[Isochronous]

This month and next that NAB Amex should get you up to 100,000 points cap at 1.5 points per dollar is how I believe it will work.

How is it changing after that? I haven't received any notice from them

 

[Isochronous]

Am I right that HSBC Plat, Qantas Credit Union Visa Plat, and ANZ Black are the best remaining options?