ATO (tax office) payments by credit card

[cove]

Tonight my Citi Prestige card is close to its credit limit with a payment due on 29th June. It is 1.33 net Kris flyer miles per dollar on non ATO expenditure. If you want to do overseas transactions you pay 3.3% fee for 3.33Kris net Kris flyer miles which can excite many folks. High income barrier $150,000 or $120,000 to deter many and a high annual fee of $700 applies and no ATO points.

 

[Kilo]

Tonight my Citi Prestige card is close to its credit limit with a payment due on 29th June. It is 1.33 net Kris flyer miles per dollar on non ATO expenditure. If you want to do overseas transactions you pay 3.3% fee for 3.33Kris net Kris flyer miles which can excite many folks. High income barrier $150,000 or $120,000 to deter many and a high annual fee of $700 applies and no ATO points.

How does this compare to the Signature?

 

[cove]

You earn less on Signature and the annual fee is lower so many who are not putting large amounts through their CCs should be
happy with the slightly lower earn rate. The barrier to entry is lower as to income so it would be very suitable for many who want the Kris Flyer opportunity.
Again nothing for ATO.

 

[Kilo]

You earn less on Signature and the annual fee is lower so many who are not putting large amounts through their CCs should be
happy with the slightly lower earn rate. The barrier to entry is lower as to income so it would be very suitable for many who want the Kris Flyer opportunity.
Again nothing for ATO.

I put a couple of hundred k through my Signature pa. I've been wondering if it is worth moving to the Prestige. I do enjoy the zero fees though.

 

[cove]

Zero is a favourite figure of mine but I pay about $2000 to earn way too many points each year. It is a tough gig but the family seem to enjoy the stylish travel.
I would think a mathematician might suggest the cut off would be around $200,000 to $250,000 as that extra earn of 0.33 points per dollar could almost get you a one way J ticket to Europe on Kris Flyer(subject to the redemption fees that are high).

 

[Kilo]

Thanks I will crunch the numbers on this.

 

[mark4217]

There is a complete spreadsheet on this in another thread somewhere. It was quite comprehensive. I will have a look for it and report if I find it.

 

[mark4217]

Look up post #44 from 'ferni' dated
10/19/14. I don't know how to share or link. Under Credit Cards / Citibank titled: FINALLY!. City launch Prestige ya da ya da .

 

[Duffa]

240,000 spend would net an extra 80,000 points - redeem for saucepans at $8 per 1000 points and you have $640 worth of points.
Free hotel once a year plus the limo service and it's a viable proposition IMHO.
If you can get the half annual fee of $350 it's a no brainer

 

[Kilo]

Look up post #44 from 'ferni' dated
10/19/14. I don't know how to share or link. Under Credit Cards / Citibank titled: FINALLY!. City launch Prestige ya da ya da .

Thanks I found it : http://www.australianfrequentflyer....nching-citi-prestige-63672-5.html#post1132286

 

[Cruiser Elite]

240,000 spend would net an extra 80,000 points - redeem for saucepans at $8 per 1000 points and you have $640 worth of points.
Free hotel once a year plus the limo service and it's a viable proposition IMHO.
If you can get the half annual fee of $350 it's a no brainer

And throw in 3 or 4 'free' nights at 5* hotels via the 'Stay 4 / Pay 3' promo and more direct value ~$1500 to $2000 can easily be had.

 

[cove]

Had to pay the other 15% surcharge on our $35,000 super contributions for 2014 today (30% seems a bit harsh). More Kris Flyer points for Mrscove is the only redeeming feature of paying $10,500 in 2 surcharges.
Gosh I just cannot wait for the 2015 ones to rock up.

 

[Kilo]

Had to pay the other 15% surcharge on our $35,000 super contributions for 2014 today (30% seems a bit harsh). More Kris Flyer points for Mrscove is the only redeeming feature of paying $10,500 in 2 surcharges.
Gosh I just cannot wait for the 2015 ones to rock up.

Cove are you paying super contributions via CC?

 

[cove]

No we run our own Self Managed Super Fund so paying on a CC would not work. We are very happy with Mark at esuperfund.com.au and for the two of us we pay $699 a year for the accounting and audit so that is just under $350 a person per year. I was very pleased to get that lead from a business acquaintance and it has worked a treat. No trailing commissions and accurate tax returns and audit.
I was an auditor and tax agent so I check the accuracy of the accounting.....right first time...every year.....

 

[Nizar]

Guys after a CC provider (in this case NAB) changes its terms and conditions to say reduced/no points on ATO spend is it still possible to put relatively small amounts through from time to time "hidden" amongst other transactions ?

This has worked for other cards in the past hasn't it ?

 

[cove]

Time to move on Nizar as you would be flogging a dead horse. ANZ Black are paying and I have mentioned others.

 

[lovetravellingoz]

Guys after a CC provider (in this case NAB) changes its terms and conditions to say reduced/no points on ATO spend is it still possible to put relatively small amounts through from time to time "hidden" amongst other transactions ??

Hidden? Surely you do not think that they have people manually matching transactions?

It is all automatic. The software will just automaticaly asign the earn rate.

 

[cove]

I think Nizar may have known Citibank kept paying the QF points long after they stopped the non earn on the non Qantas points cards. I did not call Citi about that.
With NAB I think the chance of "an error in your favour" is unlikely with ATO as they put it in writing whereas Citi did not.

 

[legroom]

I put a couple of hundred k through my Signature pa. I've been wondering if it is worth moving to the Prestige. I do enjoy the zero fees though.

Slightly off topic:

I moved from Citi Select to fee-free Signature a while back thinking that my Black AMEX could handle the heavy lifting.

Well, I have moved back to Citi Prestige recently as the earning differential is unacceptable in my case.

Who would want to give away a return OZ SIN (J) ticket on an annual basis ?

Depending on your spend amount and whether you have a suitable higher-miles CC eg AMEX its annual fee may not be an issue.

 

[Ghostdunks]

No we run our own Self Managed Super Fund so paying on a CC would not work. We are very happy with Mark at esuperfund.com.au and for the two of us we pay $699 a year for the accounting and audit so that is just under $350 a person per year. I was very pleased to get that lead from a business acquaintance and it has worked a treat. No trailing commissions and accurate tax returns and audit.
I was an auditor and tax agent so I check the accuracy of the accounting.....right first time...every year.....

What? More good news from Cove, the master of this! I too am with esuperfund for my SMSF and I never realised I could do this. I got a tax bill from them for my super contributions last year and I just paid it out of the SMSF ANZ account as they said to do in their communications to me. Specifically, the wording was this "To the extent that the 2014 Annual Return results in a payment please ensure you pay the required amount to the ATO from your SMSF bank account before the due date specified in the Income Tax Notification". Bolding was done by them.

How do you do it, do you just pay the SMSF tax bill on your personal credit card, then just transfer cash from the SMSF ANZ account to the credit card to cover it? And esuperfund is ok with this?

I'm very interested in this because I just made a 30k contribution for this year, and if I can pay the 15% tax on that on one of my ATO-earning cards, that would soften the blow