ATO (tax office) payments by credit card

[Beta4Me]

With the ANZ Black which option would people choose?

VISA 0.392 cents per point
AMEX 0.677 cents per point

I am leaning to the AMEX.

To me, I'd value the points highly enough that the Amex would still be below my maximum acceptable acquisition cost, hence it would come down to "do I need more points?" The answer to that is always yes

 

[Danger UXB]

With the ANZ Black which option would people choose?

VISA 0.392 cents per point
AMEX 0.677 cents per point

I am leaning to the AMEX.

Not sure I understand the maths

Amex 1.45 cents buys 3 ANZ rewards points
Visa 0.42 cents buys 2 ANZ rewards points

For me 1 ANZ rewards point is not worth 1.03 cents so its visa all the way

 

[vt]

Not sure I understand the maths

Amex 1.45 cents buys 3 ANZ rewards points
Visa 0.42 cents buys 2 ANZ rewards points

For me 1 ANZ rewards point is not worth 1.03 cents so its visa all the way

Sorry, I wasn't clear. I was referring to the Qantas version of the ANZ Black card.

Amex 1.5 QFFP per $1
Visa .75 QFFP per $1

Hence
Amex 1.45 / 1.5 = 0.967 x 0.7 = 0.677 cents per QFFP
Visa 0.42 / 0.75 = 0.56 x 0.7 = 0.392 cents per QFFP

Similarly ANZ Rewards to Velocity is 2 to 1
Amex 1.45 / 1.5 = 0.967 x 0.7 = 0.677 cents per Velocity Point
Visa 0.42 / 1 = 0.42 x 0.7 = 0.294 cents per Velocity Point

So it seems for Qantas, the AMEX wins and for Velocity the VISA wins.

EDIT: Actually thinking about it, VISA would win out in both versions of the card if value is a consideration. The only time AMEX would be considered is speed of earn outweighs cost of earn.

 

[Kangol]

Sorry, I wasn't clear. I was referring to the Qantas version of the ANZ Black card.

Amex 1.5 QFFP per $1
Visa .75 QFFP per $1

Hence
Amex 1.45 / 1.5 = 0.967 x 0.7 = 0.677 cents per QFFP
Visa 0.42 / 0.75 = 0.56 x 0.7 = 0.392 cents per QFFP

Similarly ANZ Rewards to Velocity is 2 to 1
Amex 1.45 / 1.5 = 0.967 x 0.7 = 0.677 cents per Velocity Point
Visa 0.42 / 1 = 0.42 x 0.7 = 0.294 cents per Velocity Point

So it seems for Qantas, the AMEX wins and for Velocity the VISA wins.

EDIT: Actually thinking about it, VISA would win out in both versions of the card if value is a consideration. The only time AMEX would be considered is speed of earn outweighs cost of earn.

Interesting, where are you getting the "x 0.7" from?

 

[vt]

Interesting, where are you getting the "x 0.7" from?

Paying via pty ltd

 

[Ghostdunks]

Interesting, where are you getting the "x 0.7" from?

I was just thinking the same thing....Calculated guess from me says its accounting for his/her marginal tax rate, as they're going to deduct the CPF. Personally, I wouldn't put that into the equation as marginal tax rate is different for everyone. I would just express it as an absolute figure.

EDIT: guess VT just beat me to it.

 

[shifty]

With the ANZ Black which option would people choose?

VISA 0.392 cents per point
AMEX 0.677 cents per point

I am leaning to the AMEX.

AMEX for me. I value my points a lot higher as only J or F redemptions.

ps. As in the above few posts, I also count my cost per point higher than you as I don't factor in the deductibility of the fee.

 

[cove]

Enjoying sharing the tax deductibility of the fee (if applicable) is a great concept as tax rates currently range from zero to 49%.

 

[vt]

Just to confirm, ANZ Black QFF AMEX pays 1.5ppd

 

[medhead]

Not sure I understand the maths

Amex 1.45 cents buys 3 ANZ rewards points
Visa 0.42 cents buys 2 ANZ rewards points

For me 1 ANZ rewards point is not worth 1.03 cents so its visa all the way

But...
on AMEX 3 points cost 1.45 cents, so 0.49 cents per point. It's not better than 0.21 cents per point on visa, but it is below 1.03 cents. :?:

 

[burmans]

But...
on AMEX 3 points cost 1.45 cents, so 0.49 cents per point. It's not better than 0.21 cents per point on visa, but it is below 1.03 cents. :?:

I think he's referring to the incremental benefit of using Amex over Visa, i.e. 1.03 cents to buy that extra point. Obviously has an economics/maths background, and I'd agree this is how this incremental benefit should be costed. The costing you mention is the overall benefit if you did not compare it to Visa, only relevant if you dont have a Visa option.

 

[andye]

I think uxb is referring to the marginal cost of the extra point

 

[medhead]

I think he's referring to the incremental benefit of using Amex over Visa, i.e. 1.03 cents to buy that extra point. Obviously has an economics/maths background, and I'd agree this is how this incremental benefit should be costed. The costing you mention is the overall benefit if you did not compare it to Visa, only relevant if you dont have a Visa option.

I think uxb is referring to the marginal cost of the extra point

Strange way to look at it. Fails to consider a number of related factors.

Absolute cost is equally important. Another factor is the spend requirement to achieve a certain number of points. 50% higher spend on visa, especially the tax paid being something that most people wish to minimise. Cove being the obvious exception.

 

[legroom]

At the back of my mind is the thought that the train may stop (ask CountryBank) at any time so the relative cost differential is my "costs" of insurance against that possibility.

 

[amaroo]

At the back of my mind is the thought that the train may stop (ask CountryBank) at any time so the relative cost differential is my "costs" of insurance against that possibility.

+1 and + the other three bods that need tickets in this family.

 

[burmans]

Strange way to look at it. Fails to consider a number of related factors.

Well, some may claim that you are failing to consider a number of factors in your calculation!

Making the statement that AMEX 3 points cost 1.45 cents, so 0.49 cents per point ignores the fact you can get 2 of those points at 0.21 cents.

2 points at 0.21 cents and the last point at 1.03 cents does give an average cost of $0.49 indeed but ignores the fact that in getting 3 points rather than 2 you are getting that extra point not at the average rate, but you also have to make up for forgoing the cheap rate on the first 2 points.

 

[medhead]

Well, some may claim that you are failing to consider a number of factors in your calculation!

Making the statement that AMEX 3 points cost 1.45 cents, so 0.49 cents per point ignores the fact you can get 2 of those points at 0.21 cents.

2 points at 0.21 cents and the last point at 1.03 cents does give an average cost of $0.49 indeed but ignores the fact that in getting 3 points rather than 2 you are getting that extra point not at the average rate, but you also have to make up for forgoing the cheap rate on the first 2 points.

Well, actually, if we accept this marginal cost of the third point accounting magic. You are not forgoing the cheap rate on the first 2 points. The marginal cost of the third point being higher interpretation is predicated on the first 2 points being purchased for 0.21 cents. That's basically why your last paragraph seems like nonsense.

What you'll find is that I am considered more than one factor. Whereas the marginal cost view only considers the marginal cost of the 3rd point. I would suggest that I'm not the one ignoring factors here. Telling me I can get 2 points @0.21 cents doesn't help if I want 3 points from a fixed spend, for example.

 

[cove]

Many go the more expensive route with a bank branded Amex so that they have enough points to go to their chosen destination. Otherwise you could leave someone behind but that might not fly (so to speak).
ANZ Black Amex could cost 1.45% divided by 1.5 points = 0.966 cents less any tax deduction that could range from zero to 49% off.

 

[amaroo]

Many go the more expensive route with a bank branded Amex so that they have enough points to go to their chosen destination. Otherwise you could leave someone behind but that might not fly (so to speak).
ANZ Black Amex could cost 1.45% divided by 1.5 points = 0.966 cents less any tax deduction that could range from zero to 49% off.

More expensive or more lucrative? Depends on your POV or the size of your tax obligation.

 

[cove]

Amaroo last night I was a bit too jet lagged to make headway on the BAS that is due on 21st. Now I am awake at 12.30 am.