ATO (tax office) payments by credit card

[Deleted User]

I wish I had the chance to split my payments up, but as a smallish sole trader, my tax bills are not big enough :-(

 

[burmans]

It's always been the case that the $50,000 is a per transaction limit and that you can break larger bills down into multiple $50,000 transactions plus leftovers. Effectively you can pay any size tax bill via this portal.

Assuming you have the credit limit to do so or keep replenishing the funds!

 

[cove]

We regularly make a phone call to send off $250k in 5 lots of $50k to my girlfriend at the ATO. You need a bit of a system of good credit limits on the cards you use and a good sized BPay limit to transfer funds quickly.

 

[burmans]

That s a bit different to overpaying a particular payment and then getting the refund back a couple of days later, I wouldn't want to overpay a large amount for the points then wait till my ITR is lodged to get the refund

For businesses you don't have to wait if you have access to the Business Portal. If you have a credit in an account you can request a refund, usually takes a few days only.

 

[ferni]

I have read parts of this thread but just wondering if there is anyway to take advantage of this if I'm just an employee on PAYG... ie maybe convince my employer to not take as much tax out so i have a tax bill at the end of the year? Not sure if they can/would do it but any other ideas?

 

[Stephen65]

I believe you can file a notice asking your employer to reduce the amount of PAYG tax they withhold from your salary on the basis that your taxable income will be lower than the estimate the PAYG is being calculated upon, say for example, because you have a large negative gearing deduction to set off against that income.

But...when it turns out that your taxable income isn't lower then you will have to pay interest to the ATO on that catch-up tax bill. You might also have to pay a penalty if you didn't have a proper basis for the lower estimate.

So I doubt there is any way for wage and salary earners to use this cost-effectively.

 

[cove]

Re: Amex: Turn your recurring bills into ongoing rewards..1K bonus points per partner

The ATO have missed sending 3 accounts for 28th February....I don't know whether to laugh or cry.
Wait a minute I think I will earn interest on the money.
drron Don't Panic there is nothing we can do.
I do love the jokes that are circulating about the PM....

 

[cove]

Re: Amex: Turn your recurring bills into ongoing rewards..1K bonus points per partner

I think we should relax about this subject and thank js for the first post in this thread. We cannot do anything about tax rates except vote at elections.
"Stop thinking of it as Your Money"and "Taxes Building A better Australia " are two sayings I remember. I am unsure where the first saying came from but it was probably from a tax audit.
Now anyone who gets a tax assessment to pay of any kind can credit card it on either of a Visa/MasterCard or an American Express card. It can be your best game in town.

 

[jamesD]

Re: Amex: Turn your recurring bills into ongoing rewards..1K bonus points per partner

Now anyone who gets a tax assessment to pay of any kind can credit card it on either of a Visa/MasterCard or an American Express card. It can be your best game in town.

And for those government departments that don't have "competitive / viable credit card fees" (such as Brisbane City Council and Queensland Urban Utilities) I have sent in feedback on their website asking why they have't negotiated a better rate with their financial institution. Haven't received any responses yet.

 

[cove]

Re: Amex: Turn your recurring bills into ongoing rewards..1K bonus points per partner

Just a reminder for anyone who pays any quarterly taxes you have 5 days to get any ATO bills onto your favourite points earning credit card. Visa and MasterCard ATO processing fee is 0.48% and American Express is 1.25%. Last date is 28th February for payment unless you have a "special arrangement" with the ATO.
I still think this is one of the best deals going.

 

[kpc]

Re: Amex: Turn your recurring bills into ongoing rewards..1K bonus points per partner

Just a reminder for anyone who pays any quarterly taxes you have 5 days to get any ATO bills onto your favourite points earning credit card. Visa and MasterCard ATO processing fee is 0.48% and American Express is 1.25%. Last date is 28th February for payment unless you have a "special arrangement" with the ATO.
I still think this is one of the best deals going.

I wasted last weekend doing my BAS..paid with a Visa. I still curse Howard and Costello whenever I do my BAS:evil::evil::evil:

 

[Deleted User]

Re: Amex: Turn your recurring bills into ongoing rewards..1K bonus points per partner

I still think this is one of the best deals going.

Spot on there cove....Must be the best rate for points earn out there, and for most people paying taxes like PAYG & GST, the fee itself is tax deductible, pretty much makes the points well less than half a cent each...

 

[cove]

Re: Amex: Turn your recurring bills into ongoing rewards..1K bonus points per partner

I get a double banger with BAS every month by 21st and then the quarterly ones fall due this month on 28th. I am loading my cards using Bpay.
For the deductible ones you can make a point for about 0.2 cents each. Use a card that earns 1.333 points a dollar on Visa less your tax rate.....way to go!

 

[Deleted User]

Re: Amex: Turn your recurring bills into ongoing rewards..1K bonus points per partner

For the deductible ones you can make a point for about 0.2 cents each. Use a card that earns 1.333 points a dollar on Visa less your tax rate.....way to go!

Makes one wonder actually how much the points are sold for to the credit card companies...?

Significantly cheaper than the offering QFF give in regard to top up points...!

Frequent Flyer - Using Points - Top-up Points

going OT here, but seriously who would pay $20 for ~500 QFF when you could use that $20 towards a tax bill to earn something closer to 10x that :shock:

 

[cove]

Re: Amex: Turn your recurring bills into ongoing rewards..1K bonus points per partner

I think Woolworths would be paying over 1 cent a point excluding GST.

 

[Origin]

Re: Amex: Turn your recurring bills into ongoing rewards..1K bonus points per partner

Yes just paid my tax on the card earlier in the week. Wish I realized I could do this back in 2009 or whenever it started. It is an expense that I looked at as dead money. In a strange sort of way I look forward to paying my tax now. Crazy I know! Just have to work out the best way to use all these points now

 

[cove]

Re: Amex: Turn your recurring bills into ongoing rewards..1K bonus points per partner

Origin expect offers from strangers to help you burn off those points.....try flying in J and if you really like that you can look into pointy end travel !

 

[KLN]

Re: Amex: Turn your recurring bills into ongoing rewards..1K bonus points per partner

Yep, flying J all the way in May this year with mr. KLN.

 

[cove]

Re: Amex: Turn your recurring bills into ongoing rewards..1K bonus points per partner

I hope mr. KLN realises you are a treasure KLN.
Each morning I have been sending off the BPay money as soon as it reaches my credit card account.
Fortunately I have stopped thinking of it as MY MONEY and the travel benefits are mounting quickly.
It will be wrapped up by 28th February and takes about 15 minutes a day.

 

[KLN]

Re: Amex: Turn your recurring bills into ongoing rewards..1K bonus points per partner

Yes, he does Cove, especially when he see's the queue for Y check-in, and i just say follow me to the J queue please. we haven't flown Y overseas for a couple of years now. 4 X F1 races coming up this year, domestic is Y though,