ATO (tax office) payments by credit card

[cove]

I was referring to the tax surcharge here which is a second 15% and yes that can be paid on a personal credit card.

 

[infinity]

I've had troubles with auditors before if I pay the funds primary tax using my c/c and then seeking reimburse
It contravenes SIS

 

[Danger UXB]

I've had troubles with auditors before if I pay the funds primary tax using my c/c and then seeking reimburse
It contravenes SIS

mine have had no issues with cc payments so long as I pay the surcharge not the super fund. It is now listed as a payment option on the back of the IAS so as far as I am concerned they are happy to get paid by that method. If not don't out it on the form !

 

[prozac]

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

As long as the path is clear you can pay however and reimburse yourself from your superfund acct. whenever within that same tax year.
Two different auditors have had no issues with this.

 

[amaroo]

Our SMSF does its fair share ensuring the amaroo's are flying to wonderful destinations in the comfort we require:mrgreen:

 

[mark4217]

+1 for that. Very interested.

 

[albyd]

My accountant has asked me not to pay my SMSF tax by CC or it's considered a contribution. I might ask the question again - hate to miss easy points.

I do have a friend on MLC master key who has just discovered can make his contribution of $35k by MC or Visa with no surcharge.

 

[mark4217]

How is that done??

 

[albyd]

Have a look at section 4 of page 2 of the document at this link:
http://www.mlc.com.au/resources/MLC...tatic Files/pdf/its_easy_to_contribute_mk.pdf

Looks like you can contribute by credit card. Of Course need to make your own mind up as to whether this feature alone makes this suitable to put your super into (up to individual choice) but looks like credit card contributions are possible.

Maybe those of us who run businesses can select this as a default fund and use CC to make a contribution to staff funds It's got me thinking what other MLC products other than super will allow a contribution by CC. Anyone come across any others, I'd be interested in hearing about it.

 

[mark4217]

Yes I can see how that works if you have MLC account. That's a great way to pay contributions. In my case I had a SMSF and a regular bank account attached to Comsec. I have access to my company eftpos but doubt that helps me. Enjoy your new found points perk. Well done.

 

[cove]

As I said the second 15% surcharge can be paid personally as it is a secondary levy where a taxpayer has a taxable income of $300,000 or more so it is a special situation and the forms you receive give you the choice of paying it personally or out of the superfund. I chose to pay that on a credit card and leave the superfund to keep growing so yes we paid it personally.

 

[mark4217]

I just did it on my 'Installment Activity Statement' on the back it has the option to pay by credit card: www.ato.gov.au/howtopay
I guess I need to ask, do I transfer out of my super back to my card to total payment including the 1.48 fee? Or just the original due payment. A job for my accountant I guess.

 

[prozac]

You need to do the transfer out of your super today to make sure you beat the end of financial year tomorrow.

 

[cove]

I agree the answer is Yes and Today and only the tax figure and not the charges in your example Mark.

 

[mark4217]

Thanks cove, that's what I did and attached all receipts together to make it easy for my accountant.

 

[KLN]

i pay our SMSF Tax obligations on my personal CC, and after advice from the yearly auditor, that me personally has to cop the surcharge, not the SMSF. so i just transfer the amount out of my SMSF to my CC/or other personal account and term it reimbursement, and then the surcharge goes under Domestic Drawings in my case. Auditor is happy!

 

[quokka77]

Opened my 293 tax assessment today... still, will be happy to pick up some points (probably do it via gift cards this year, as I don't want to open a new card just for the odd tax top-up.). Unlike cove I will be asking my super fund to reimburse my pre-retirement self. I can see a few "sovereign risks" to my super in the next 30 years, so any chance i get to draw it down before then will be grasped with both hands.

 

[quokka77]

Getting off topic but I was interested to read of that cheap DIY esuperfund.com.au thing. Seems intriguing, but i am loathe to leave my nice safe public service accumulation account behind. Still, if i had a nose for investment, I'd be all over it.

 

[cove]

Your superannuation is to provide funds from your retirement date through to the end game. If you have too little you may qualify for a modest pension from the Australian Government. The employee superannuation funding by employers has been running now for about 32 years. Many folks think they can buy a caravan, take overseas trips and buy a 4wd then qualify for a pension. By 2030 or earlier this will probably not be possible because the next generation won't be able to cover you as well as a student loan and a large mortgage. I think that new generation will not pay enough in taxes to cover us as we go off to shuffle around in our senior years.

 

[cove]

If you have no investment experience Do Not attempt to run your own superfund.