ATO (tax office) payments by credit card

[ozkid]

Have just noticed page 3 of my NAB Qantas Rewards Premium February statement. As at 1 May 2015: "The description of net purchases will exclude when you make a payment to the ATO. This means you won't earn any Qantas points on this transaction."

Another one gone. I felt the game got flushed when AusBT posted the ATO earning article on both their website and on the Sydney Morning Herald.

 

[medhead]

Another one gone. I felt the game got flushed when AusBT posted the ATO earning article on both their website and on the Sydney Morning Herald.

But the response is nonsensical. If a card provider is prepared to give points for a purchase at myer, why not for a purchase from the ATO. There is zero difference in cost of giving points between merchants. It's pretty illogical to somehow see this as scamming the card provider.

 

[ozkid]

But the response is nonsensical. If a card provider is prepared to give points for a purchase at myer, why not for a purchase from the ATO. There is zero difference in cost of giving points between merchants. It's pretty illogical to somehow see this as scamming the card provider.

I suspect (and I readily admit no knowledge of the financial background, just based on common sense) it is the volume of ATO transactions. Not many people would load their credit cards with 5-figure transactions, every month/quarter with regularity, versus the simple purchases at the petrol station and stores. I don't think the card provider is thinking this is scamming, just that they are haemorrhaging points. They don't make enough money as most will pay off their credit cards in full before incurring interest.

So the simplest reaction is to stop all ATO transactions.

I am not saying I like it - we're all going to lose a great pipeline for easy points. But too many pigs went to this trough, double points promotions got abused, the bank spreadsheet went into meltdown, and the hole is being closed

 

[FuzzyAUS]

Have just noticed page 3 of my NAB Qantas Rewards Premium February statement. As at 1 May 2015: "The description of net purchases will exclude when you make a payment to the ATO. This means you won't earn any Qantas points on this transaction."

Spend up until 1 May.

Also monthly points cap has been halved to $50000 per statement.

I just checked my statement for Feb (27/2) and there was no note on mine, I also just checked the website and the T&C's have not yet been updated (since 2013), will keep an eye on next months as I would rather not have to change cards/update all the automatic payments

 

[burmans]

I just checked my statement for Feb (27/2) and there was no note on mine, I also just checked the website and the T&C's have not yet been updated (since 2013), will keep an eye on next months as I would rather not have to change cards/update all the automatic payments

I really think you are just delaying the inevitable on NAB cards.

 

[KLN]

Wow, i miss a couple of days of reading, and you've all been at it all weekend. Calculators running hot. just finished reading all of that and now have a headache, must be time for a glass of wine!
i just know that i still like the WBC Altitude Black, and have 2 of them also. i've had a great time with it over the last few years, and haven't flow International Y since. still have lots warehoused, and are still just as grateful getting the half that it used to be for ATO. lucky enough to have 5 figure ATO spend every BAS, so am still happy little vegemite. have Melbourne (with Mr KLN and KLN Junr), Malaysia (with KLN Junr and Nanny KLN) and Shanghai (finally just Mr KLN and myself) F1's coming up in the next 6 weeks, none of which are being flown in Y. J only, albeit MAS on the other routes and Virgin on the Domestics.
Oh and a side trip to Seoul after Shanghai for a week to. as they say in the Twitterspere #feelingblessed (don't really get Twitter either though)

i think you all need a rest from the calculators tonite!!!

 

[amaroo]

I suspect (and I readily admit no knowledge of the financial background, just based on common sense) it is the volume of ATO transactions. Not many people would load their credit cards with 5-figure transactions, every month/quarter with regularity, versus the simple purchases at the petrol station and stores. I don't think the card provider is thinking this is scamming, just that they are haemorrhaging points. They don't make enough money as most will pay off their credit cards in full before incurring interest.

So the simplest reaction is to stop all ATO transactions.

I am not saying I like it - we're all going to lose a great pipeline for easy points. But too many pigs went to this trough, double points promotions got abused, the bank spreadsheet went into meltdown, and the hole is being closed

IMO...

1. Banks like customers that "Do Not" pay their cards off in full. They tolerate "others" but the mass point outlay must be driving them crazy.
2. Average ATO transactions are most likely very decent $$$, therefore their risk profile would be off the charts.
3. Once Amex started to clip the wings - it made sense for the rest to follow.
3. They just don't like giving away large point balances .... they are mean!

 

[medhead]

I might have got the wrong statement, it could be the March statement. Especially considering it's due 16 March.

I suspect (and I readily admit no knowledge of the financial background, just based on common sense) it is the volume of ATO transactions. Not many people would load their credit cards with 5-figure transactions, every month/quarter with regularity, versus the simple purchases at the petrol station and stores. I don't think the card provider is thinking this is scamming, just that they are haemorrhaging points. They don't make enough money as most will pay off their credit cards in full before incurring interest.

So the simplest reaction is to stop all ATO transactions.

I am not saying I like it - we're all going to lose a great pipeline for easy points. But too many pigs went to this trough, double points promotions got abused, the bank spreadsheet went into meltdown, and the hole is being closed

However, in the case of a card like the nab premium. There is/was a $100000 per month cap on earn. So they were happy to hand out that many points. Now reduced to $50000 per month from 1 May. In that situation I don't see the difference in where the money gets spent. Even if you've mentioned valid issues for the banks.

 

[albyd]

Is that for a premium rewards card?

That's correct mine is NAB Velocity premium card. Just rechecked my statement $20k/month spend limit to accrue points & no velocity points for ATO.

 

[prozac]

I wonder the reaction if we suddenly all started paying by cheque.

 

[burmans]

IMO...

1. Banks like customers that "Do Not" pay their cards off in full. They tolerate "others" but the mass point outlay must be driving them crazy.
2. Average ATO transactions are most likely very decent $$$, therefore their risk profile would be off the charts.
!

I think this is the crux of it, when people are making large ATO transactions they almost certainly are also paying their cards off in full so I think #1 is the real problem. They have probably done the modelling and are just not making much money off the people who are using for ATO.

 

[medhead]

That's correct mine is NAB Velocity premium card. Just rechecked my statement $20k/month spend limit to accrue points & no velocity points for ATO.

Mine is the Qantas rewards premium card. I'd guess there is different earning for each program.

 

[Eggsbenedict]

Mine is the Qantas rewards premium card. I'd guess there is different earning for each program.

That seems to be the feedback. It's differntly card not customer based.

 

[amaroo]

However, in the case of a card like the nab premium. There is/was a $100000 per month cap on earn. So they were happy to hand out that many points. Now reduced to $50000 per month from 1 May. In that situation I don't see the difference in where the money gets spent. Even if you've mentioned valid issues for the banks.

My guess, without ATO transactions - bugger all people get anywhere near the $100,000 per month limit. ATO is artificially super-sizing the big spenders pool.

 

[cove]

It has been an amazing journey since js did the first post in AFF. Credit cards that have stopped paying out reasonable points on ATO include our 3 Amex Ultimate and Velocity cards , the 2 Citibank Prestige cards and some Westpac cards (but not all).
Despite these changes we still have more points and miles in 2015 than at the same time in 2014 so that cannot be too bad.
It is just a game and the discovery of some top retail value awards for points or miles has been real fun.

 

[ozkid]

Yes Cove still a game but harder to play now. Will be doing a last goodbye with the Krisflyer this month and pre-pay the March BAS before the rate drops on 1st April

 

[kpc]

Had an unexpected tax bill to pay today...had to use the ANZ Black Visa @0.75 QF pts per $ until I find a replacement for the 1Qf pt per $ WEDRCC...

 

[shifty]

It has been an amazing journey since js did the first post in AFF. Credit cards that have stopped paying out reasonable points on ATO include our 3 Amex Ultimate and Velocity cards , the 2 Citibank Prestige cards and some Westpac cards (but not all).
Despite these changes we still have more points and miles in 2015 than at the same time in 2014 so that cannot be too bad.
It is just a game and the discovery of some top retail value awards for points or miles has been real fun.

Exactly...

Lists have been created before, however as it's constantly evolving what card/s are best going to replace my NAB premiums for ATO with QFF earn. I guess I need to get my new cards in place come May. ANZ FF Black? Westpac Altitude Black?

 

[medhead]

My guess, without ATO transactions - bugger all people get anywhere near the $100,000 per month limit. ATO is artificially super-sizing the big spenders pool.

I guess so. But if they're prepared to give someone $50000 (or $100000) worth of points per month why care about ATO vs Myer.
I guess as with ASA there should be a more sophisticated response.

 

[Isochronous]

plus CBA Diamond, W/pac Krisflyer, NAB platinum Qantas/Velocity (though there will be 20k cap per statement). There's prob a few other, just have to search this thread.

Is the NAB Platinum cap 20,000 QFF or A$20,000 spend (which would mean 30k QFF points per month)?