ATO (tax office) payments by credit card

[sumthinfornuthin]

Love your work - Push, you good thing!

We've exhausted the last dregs of the annual limit for a couple of DIA AMEX - good timing! Will keep the cards as they are fee free and pay 1.5p/$ after the 31/12/15.

DIA =????? which card is that

 

[cove]

That would be CBA Diamond which changes to zero points on ATO very soon but will remain ok for everything else.

 

[Andyc]

If your business accepts credit cards as payments, what commission do you pay?

9 digit turnover can get you some pretty good deals. 1.7% AMEX and avg. 0.5% on MC/Visa.

 

[kpc]

I did start that new ANZ Black as that one is really worth the trouble. I think I have the new internet log in worked out as I have had a long vacation from using ANZ for anything other than in our eSuper Fund.

I gave the ANZ Black Visa a try today...seemed to work OK

 

[infinity]

Re: ATO (tax office) payments by credit card on C B A diamond

ATO points disappear on 2/11/15

 

[legroom]

Just a quick follow-up on this. I checked with esuperfund as to the possibility of paying my SMSF tax obligations from my personal credit card(for points), then reimbursing from my SMSF bank account, and their reply was:

"We advise that your Fund's tax liability is usually required to be paid from your Fund's bank account. To the extent that tax payment is paid from your personal bank account, it must be reimbursed within 7 days of the original payment date"

So for all esuperfund SMSF clients, looks like a confirmed go for using personal credit cards to pay for SMSF tax. As to the CPF, I doubt this will be expensable to the SMSF, so I'll just personally absorb the CPF myself rather than try and claim it anywhere.

With my own SMF, I just BPay the CC from my super bank AC when it becomes due.

It was last audited 1-2 months ago and passed without any comment.

Maybe esuperfund is different and more 'bureaucratic' than a genuine SELF managed fund as mine is.

 

[amaroo]

DIA =????? which card is that

CBA Diamond card. Has been ATO friendly for years with a 500,000 QFFP pa cap - pronounced DOA on the 2nd Nov 2015.

Remains a terrific card due to it being fee free.

 

[cove]

Using the US Citi cards this month cost a net $70.78USD to fully process $70,000 AUD of ATO including the incoming funds fee of $20 USD. That is rather sweet to get AA miles that are worth about double Qantas points.

 

[yoyo]

Used two US credit cards to pay some ATO and the 0.42% fee was reduced by a .7251 exchange rate versus a .7226 rate so the cost to get AA miles was close to zero. Nor sure if I am getting as tinny as Mrscove but that was really lucky.
Mrscove was chuckling about me getting surveyed by a credit card company that is planning a name change because she knew I had done $10,000 a day of ATO on their Visa card. Nothing to be concerned about I told her.

I have some US cards too but with a low limit so I can't put too much through. I'm not sure what you mean by this reduction due to the exchange rate. Can you explain it? I have always been reluctant to do this because I am worried about exchange rate fluctuations.

 

[cove]

The rate Citi US used lowered my transaction cost so that normal 0.42% ATO fee became smaller by about $200 AUD.
We used Bell FX to switch $70,000 AUD into USD and they are good.
Our combined Citi US credit limits are about $100,000AUD but we can repeat the transaction several times a month if needed.

 

[danielt25]

Previously I was using the CBA Diamond Awards Mastercard to pay my $130k quarterly BAS tax, however this is ceasing on 2 November 2015.

The only viable alternative I found (if using a Mastercard/Visa - due to lowest surcharge of 0.42%) was the CBA Business Platinum Rewards Cards ($300 pa fee) - however this caps at 300,000 points per year, but earns 1 reward point for $1 spent.

The next hurdle is if this can be transferred to velocity points, as they mention CBA Reward points not CBA Business reward points in their eligilibity.

Anyone found a better earn rate on Mastercard/VISA or unlimited point earning capacity? (not interested in AMEX given 1.45% surcharge)

 

[ninja-tim]

ANZ Black Visa/Amex combo is the best so far I believe, better than the CBA.

 

[TRS-80]

The only viable alternative I found (if using a Mastercard/Visa - due to lowest surcharge of 0.42%) was the CBA Business Platinum Rewards Cards ($300 pa fee) - however this caps at 300,000 points per year, but earns 1 reward point for $1 spent.

The next hurdle is if this can be transferred to velocity points, as they mention CBA Reward points not CBA Business reward points in their eligilibity.

Anyone found a better earn rate on Mastercard/VISA or unlimited point earning capacity? (not interested in AMEX given 1.45% surcharge)

According to the Velocity credit card transfer page 2 rewards points = 1 Velocity point. Your best best is probably ANZ Rewards Black, 2 rewards points per $1, then 2 rewards points = 1 Velocity point. $375 pa, waived for the first year, with 75,000 bonus points if you put $7,500 through it in the first 3 months. And 10,000 bonus points if you spend $50,000 in the first year.

 

[danielt25]

According to the Velocity credit card transfer page 2 rewards points = 1 Velocity point. Your best best is probably ANZ Rewards Black, 2 rewards points per $1, then 2 rewards points = 1 Velocity point. $375 pa, waived for the first year, with 75,000 bonus points if you put $7,500 through it in the first 3 months. And 10,000 bonus points if you spend $50,000 in the first year.

I looked at the ANZ black, however in their terms & conditions booklet (under "Earning Reward Points"), they say you don't earn points on "government charges" .. at least with the CBA Business Rewards card, they won't deny the points (if they think they are business charges), and they definitely allow points from ATO transactions.

 

[cove]

With ANZ Black and paying a business BAS you should be able to get a tax deduction so what looks like a 0.97% cost could be less than that for you.
If at sometime in the future the points stop like when Citibank stopped it dead you will only lose about $1,250 less a tax deduction on that $130,000 figure. After six years I missed on 160,000 points but got that back on Citibank bonus transfers.
Sure you get more points so you can fly further/more often using the more expensive Amex option.
Less than a cent a point less a potential tax deduction is what most are doing in my group.
I tend to shandy the payments through multiple cards of multiple family members using Visa, MasterCard and Amex.

 

[TRS-80]

I looked at the ANZ black, however in their terms & conditions booklet (under "Earning Reward Points"), they say you don't earn points on "government charges" .. at least with the CBA Business Rewards card, they won't deny the points (if they think they are business charges), and they definitely allow points from ATO transactions.

The wording is a bit tricky, but I always take that to mean things like the BAD tax (who remembers that?) which were costs on top of other transactions. People here have certainly been getting points for paying the ATO with ANZ Black cards. It's definitely a game you've got to keep on top of, don't just ask the call centers either as they're unlikely to give you a good answer.

 

[woomp001]

I noticed a few pages back that our resident gun was talking about using a US based Citi card.

Any insight/ideas on how to actually go about sourcing a US card?

Ive spent a bit of time looking into this, and its looks quite hard, if not impossibly if u don't spend substantial time there...

Apologies if this has been covered before.....

 

[ninja-tim]

I noticed a few pages back that our resident gun was talking about using a US based Citi card.

Any insight/ideas on how to actually go about sourcing a US card?

Ive spent a bit of time looking into this, and its looks quite hard, if not impossibly if u don't spend substantial time there...

Apologies if this has been covered before.....

Yeah Cove, and possibly others, have posted in here, or the other ATO thread re: attaining one and using one. Think you need a U.S. residential address and really need to know your FX rates etc and transactions etc. A quick search of either ATO threads should bring up the relevant post.

 

[hossein_au]

I noticed a few pages back that our resident gun was talking about using a US based Citi card.

Any insight/ideas on how to actually go about sourcing a US card?

Ive spent a bit of time looking into this, and its looks quite hard, if not impossibly if u don't spend substantial time there...

Apologies if this has been covered before.....

Just whinging; I have multiple US CCs, but no ATO bills to pay (I am an employee in my current job) :-(

 

[Ibhayi]

With the recent charges to the CBA Diamond credit card; I am confused if the inability to earn points for ATO purchases is limited to personal cards or does it encompass business cards as well?