ATO (tax office) payments by credit card

[theblank]

Having something run for a decade....well that is living the dream.....

I am glad the credit card companies have stopped offering the Rewards Points on money transfers like payments to the ATO, these transactions are not a "purchase". I also had long hoped that the ATO would tax the guts out of these schemes but unfortunately they seemed to decide that would have been too difficult. It wouldn't have been that hard for them to do, they only needed to look at their own records and see who pays tax by credit card, and audit the big ones.

I am sure when Rewards programs were first implemented, none of them considered the impact of some cardholders earning millions of points way above and beyond what even the affluent could possibly spend on goods and services with a credit card. If the credit card companies and/or airlines were still making money out of this, they wouldn't have stopped it. Now the schemes have been watered down quite a lot, and that would be for many reasons. I am sure the abuse of the Tax payment perk was one of them, and thats stuffed it up for all of us.

 

[infinity]

You must work for the ATO with thoughts like that!

 

[Origin]

I am glad the credit card companies have stopped offering the Rewards Points on money transfers like payments to the ATO, these transactions are not a "purchase"..

What do you mean they are not a "purchase"?? Are you saying we get nothing in return for our tax dollars

 

[BillytheFIsh]

I personally have not earnt millions of points on ATO card spend (and anything near it), but I don't begrudge those that have. If I could have, I would have.

It's all in the game.

 

[albyd]

I don't think the ATO "purchase" activities of many cardholders have contributed to the dilution of rewards schemes. If a particular spend category is unprofitable for the bank, they'll just shut it down - as they all have with awarding points on ATO "purchases". This doesn't affect the perks of other card holders.

I think this is of benefit to ATO - makes it easier for some taxpayers to pay on time and use the bank for funding rather than the ATO so it's a matter of cost recovery with the reasonable payment processing fee. Why would they put up disincentives for people to use this payment method and thus delay getting their money?

RBA having a bee in its bonnet about interchange (yet still expects "innovation" to be somehow funded) is to blame. It's unfortunate but that's life.

 

[cove]

The ATO and Treasury will miss some of us when we are gone.
It is just a game and don't forget it.

 

[theblank]

You must work for the ATO with thoughts like that!

No, more likely that I get paid a salary and I am jealous that I cant do that.

However some people do, I know one senior operations manager at a 'semi' govt organisation who spends about $200k a year on consumables with my company and pays for it on his personal credit card. (and we are small fry, his organisation would be purchasing millions pa in supplies for his 500 staff).
Yet the same guy wont let us send our usual $50 christmas gift voucher to his staff because thats against the rules.

What do you mean they are not a "purchase"?? Are you saying we get nothing in return for our tax dollars

cheeky.

I personally have not earnt millions of points on ATO card spend (and anything near it), but I don't begrudge those that have. If I could have, I would have.

It's all in the game.

I would have too, but I would not whine about being ripped off as many have done because the gravy train is been taken away

 

[cove]

By the way nothing has stopped. It is merely changing a bit.

 

[Cruiser Elite]

Sour grapes do give you a belly ache don't they.

I must have missed that post where someone was whining about being ripped off - prolly cove or infinity - I heard both them whine that night at The Olive Tree when I advised them it was their turn to buy a drink!

 

[cove]

Yes it was probably one or two of us CE.
Don't panic CE we will come over for a footy weekend so your drinks donations can get recouped.
I went on about the ATO wanting 38 payments a year from our main business in 2016-17. All my fault for thinking that was ridiculous.

 

[infinity]

Yes it was probably one or two of us CE.
Don't panic CE we will come over for a footy weekend so your drinks donations can get recouped.
I went on about the ATO wanting 38 payments a year from our main business in 2016-17. All my fault for thinking that was ridiculous.

Cove CE I'm happy to shout the drinks at my place, but we'll be watching Rugby not AFL

Plenty of RWC matches to reply

 

[Xanthe]

So............as a mesmerised little newbie who has just found this thread and is wanting to dip a little toe in the water of ATO payments, council rates and land tax (state revenue office). Are there any cards still out there for a small spender that will still award points? All I have is a CBA Diamond awards MC, a 28 degree MC and a base level Amex gold card (no annual charge). I am expecting to have to do the largest transaction of my life with a Cap Gains Tax payment on sale of a building owned by a family company (I know, that's not the way you should hold property but even the acountant didn't know what to do when CGT was first introduced and now we have to face the fiscal consequences ). This one off event will happen some time in June (bad timing) and will be about $100000. I also have some BAS to pay (only say $3000 per quarter but it all adds up). Any advice you honourable gentlemen have would be gratefully accepted by this lowly grasshopper.

 

[cove]

Qudos Bank with their QCU CC would be my pick on that summary.
Start now on their convoluted application.

 

[Radio8tiv]

Qudos Bank with their QCU CC would be my pick on that summary.
Start now on their convoluted application.

I think that is about the only decent one left, now that BankWest is dropping their earn rate on their world to .66 ppd and only .5 ppd on the platinum
I'm saving for a deposit on an investment property and will probably go with Qudos for their home loan and credit card at the same time, does anyone know if the card fee gets reduced to zero if you have a home loan with them like a lot of other financial institutions do?

 

[Sbv72]

So............as a mesmerised little newbie who has just found this thread and is wanting to dip a little toe in the water of ATO payments, council rates and land tax (state revenue office). Are there any cards still out there for a small spender that will still award points? All I have is a CBA Diamond awards MC, a 28 degree MC and a base level Amex gold card (no annual charge). I am expecting to have to do the largest transaction of my life with a Cap Gains Tax payment on sale of a building owned by a family company (I know, that's not the way you should hold property but even the acountant didn't know what to do when CGT was first introduced and now we have to face the fiscal consequences ). This one off event will happen some time in June (bad timing) and will be about $100000. I also have some BAS to pay (only say $3000 per quarter but it all adds up). Any advice you honourable gentlemen have would be gratefully accepted by this lowly grasshopper.

Hi Xanthe,

I am a tax professional but this is general advice only.

Credit card surcharge on the income tax payment will not be deductible unless company is carrying on a business. If the company is carrying on a business, and the building was used in the business, small business CGT concessions could apply to reduce or eliminate the capital gain. Check with your accountant about eligibility for the concessions.

 

[Scr77]

......does anyone know if the card fee gets reduced to zero if you have a home loan with them like a lot of other financial institutions do?

Ive just been down this track and they don't. QCU use to have a package but not anymore. Their low interest rates will more than save you $199 pa.

 

[cove]

I feel 199 is very fair for our family use and we would not ask for a cut. The application was a doozy for me as I have lots of activity on multiple CCs and they needed 3 months of each. Typically I have quite a few months where I have to reload the card but that is ok as the rewards are generous.

 

[jamesD]

Does anyone know if QCU / Qudos has a connection with Qantas which would make it viable for them to keep the rate at 1pt per $?

 

[cove]

With the Reserve Bank reviewing everything the fees reaped by banks are likely to fall further.
Lots of QCU CC holders are Qantas employees so there is a connection but Qudos is in the business of being a Mutual Bank. They have been nice to me so I try to reciprocate any chance I get.
I would not ask for a fee cut and I use it on lots of personal stuff and I pay fast.

 

[serfty]

...
I am a tax professional but this is general advice only.

Credit card surcharge on the income tax payment will not be deductible unless company is carrying on a business. If the company is carrying on a business, and the building was used in the business, small business CGT concessions could apply to reduce or eliminate the capital gain. Check with your accountant about eligibility for the concessions.

The ATO web site is currently down - but when up, this link should work: Credit card payment fee deductibility guidelines | Australian Taxation Office[Here's an except from a couple of years ago- I believe it has changed textually since but not so much in meaning & definition:

...
IANAL, but looking at the deductability definitions, most card payments fees could/should easily be 'deductible':

The CPF is deductible to the extent that:

• you incurred it as a result of paying an income tax liability and you did not borrow money from your card provider to make the payment
• you incurred it as a result of paying a goods and services tax, fringe benefits tax, luxury car tax or wine equalisation tax liability, and that liability arose in the course of gaining or producing your assessable income, or in the course of carrying on your business for the purposes of gaining or producing assessable income
• you incurred it as a result of making PAYG withholding payments where you can claim a deduction for the wages and salaries that gave rise to the withholding obligation
• you incurred it as a result of repaying your student assistance loans and then only to the extent that the expenses you paid using the student assistance loans were themselves deductible
• you incurred it as a result of repaying your employee’s student assistance loan, the repayment is a fringe benefit, and the employee’s wages are also deductible.