ATO (tax office) payments by credit card

[legroom]

I need some help - this year I upgraded my CBA cards to Diamond - then ATO points have disappeared. Then I upgraded my ANZ Gold to a Black now it too has lost ATO points.

Which cards still give QFF points for ATO payments (no matter how "poor" the perceived value)?

Tell us where you're heading so we can preempt any possible disasters.

"... which cards .... ?"

Please read the last 50 pages. Even in the 3-4 posts prior to yours there were pearls.

 

[cove]

That Citibank Signature points earn capping is on their website right now infinity.
Citi Prestige is unchanged so time for upgrades is nigh.
Take a deep breath before looking at the annual charge.
Please note these cards are all useless for ATO but are suitable for state and local government charges and everything else pretty much.

 

[ComeFlyWithMe]

When does the Citi changes take effect?

March 2016 for existing cardholders.

New cardholders get the new "enhanced" rates.

 

[infinity]

March 2016 for existing cardholders.

New cardholders get the new "enhanced" rates.

CFWM where can I confirm the March kick in for existing card holders?

 

[infinity]

New thread on the Citi Signature changes

http://www.australianfrequentflyer....oints-now-capped-20k-72669-3.html#post1361288

 

[burnt]

Little of thread, but are there any other "Hotel Loyalty" cards (other than the Hilton Macquarie card) that are capable of earning points on ATO for room redemptions and maybe even higher status, as the Hilton card can do?

 

[smckay]

ANZ will no longer pay points on ATO purchases from February 2016, according to the statement piece on my card arriving yesterday.

 

[burnt]

Yes, my online statement for the Black card arrived, confirming NO points for black

 

[serfty]

ANZ will no longer pay points on ATO purchases from February 2016, according to the statement piece on my card arriving yesterday.

The problem for the banks is 'breakage' - or lack of it.

I have come across reference to breakage in points of being around 30%.

The accountants/actuaries of the banks factor that into their calculations when forecasting financial results.

When a business owner with significant turnover forks over, say, $6m annually for their BAS, paying ~$26000 for the privilege of using a visa card, they have 6,000,000 redeemable points.

Generally the more points one has, the far more readily they might be redeemed, so those 6M don't 'last' long.

When significantly higher percentage of reward points than anticipated are redeemed rather than simply 'break', it cuts into the anticipated profits of the rewards programs.

Have that happen several score times every year and management take notice.

 

[andye]

Is the exchange rate also a factor? If SQ points are priced to the banks in SGD they would be more expensive to buy than a couple of years ago

 

[Kangol]

The problem for the banks is 'breakage' - or lack of it.

I have come across reference to breakage in points of being around 30%.

The accountants/actuaries of the banks factor that in to their calculations.

When a business owner with significant turnover forks over, say, $6m annually for their BAS, paying ~$26000 for the privilege of using a visa card, they have 6,000,000 redeemable points.

Generally the more points one has, the far more readily they might be redeemed, so those 6M don't 'last' long.

When significantly higher percentage of reward points than anticipated are redeemed rather than simply 'break', it cuts into the anticipated profits of the rewards programs.

Have that happen several score times every year and management take notice.

Interesting, but how do the banks know about the details about points being spent (if at all)? Do QFF give them that info about the customer?

 

[andye]

Interesting, but how do the banks know about the details about points being spent (if at all)? Do QFF give them that info about the customer?

Presume this applies to non-sweep bank award schemes.
Suppose its possible that qf/va factor this in on the amount they charge the banks for sweep cards

 

[serfty]

Interesting, but how do the banks know about the details about points being spent (if at all)? Do QFF give them that info about the customer?

The banks interest in points is over once they get redeemed. Their only concern is how much in $$$ they have to pay their redemption partner upon that redemption.

 

[RooFlyer]

The banks interest in points is over once they get redeemed. Their only concern is how much in $$$ they have to pay their redemption partner upon that redemption.

So you are saying that a bank (for instance) wouldn't be charged by Qantas for the points until a customer redeems them? I hadn't thought of it that way before, but it would make the proposition more attractive for the bank (only pay for points that get used). But then the question is, as Kangol intimated, how does the bank and the airline know that I'm redeeming points earned via the bank?

 

[serfty]

So you are saying that a bank (for instance) wouldn't be charged by Qantas for the points until a customer redeems them? ..?

Not at all, the travel partner charges on the basis of the transfer on/around the time of the transfer.

From there the banks have no specific care about what happens.

 

[Kangol]

Not at all, the travel partner charges on the basis of the transfer on/around the time of the transfer.

From there the banks have no specific care about what happens.

Maybe there's something I'm not getting - how is that information shared between the bank and QFF?

What if someone earns a number of points via other means (ie flying), but also earns the same amount from a bank issued cc, then the person makes a redemption - who gets charged and when? How do they tell where the points are coming from, if there are enough points from either source to make the redemption?

 

[marki]

Westpac black gives you 50% more points than your centurion but still not great value I fear

Oh .... I did not know that ....ta

 

[mark4217]

I was always of the belief that the banks pre purchase many 20x millions at a time at $x and them offer then as incentives for their cards. When they run low they have to go back to the airline to purchase more. Then when the airline offers 10% bonus for transfer back, the bank has lost those points off their balance sheet, feels good about it and purchases more from the airline. Airline now happy with a big Cheque from bank and bank happy with so many points they can continue offering 50/70 thousand points for new sign ups. Then the merry go round starts again. That's my conspiracy theory. Maybe the future of big hit points like ATO is in new sign ups. Sign up, cash in, wait 3 months, close and wait 12 months to sign up again. Just need to have say 4-6 cards cycling.

 

[serfty]

Maybe there's something I'm not getting - how is that information shared between the bank and QFF?

What if someone earns a number of points via other means (ie flying), but also earns the same amount from a bank issued cc, then the person makes a redemption - who gets charged and when? How do they tell where the points are coming from, if there are enough points from either source to make the redemption?

In the case of an Airline travel partner, the airline continually reviews the earn/burn/breakage of points from and to various sources and will endeavor to charge the banks enough to ensure they make a profit.

The banks, on their side, do similar, but almost all in relation to working to minimize the amount they need to pay the airlines and travel partners.

So little information is really 'shared' - all parties are endeavoring to maximize revenue and minimize costs.

 

[serfty]

I was always of the belief that the banks pre purchase many 20x millions at a time at $x and them offer then as incentives for their cards. When they run low they have to go back to the airline to purchase more. Then when the airline offers 10% bonus for transfer back, the bank has lost those points off their balance sheet, feels good about it and purchases more from the airline. ...

That does not change anything, rather making it more obvious the actuaries miscalculated when there's bulk earn burn.

The result being the bulk pre purchase getting exhausted earlier than expected due to unenvisaged earn and subsequent high redemption levels.