ATO (tax office) payments by credit card

[burmans]

Too late now. Should I go and inform the ATO to review my tax returns?.

Actually, according to the ATO yes you should!

 

[lovetravellingoz]

Too late now. Should I go and inform the ATO to review my tax returns?

P.S. The investments are related. That's why I'm paying extra tax. And the bill for extra tax comes to my ABN account. I don't think the ATO will bother trying to recover ~40% of ~$150/year. Not worth the time spent.

I think you need to do a lot more reading, and perhaps consider a new accountant and reconsider your source of financial advice.

If you are blending PAYG Salary with your investments then there may well be other matters that the ATO may not be too happy about.

Remember too that with self-assessment tax returns that completing them each year does not mean in any way that the ATO has approved your previous returns. You remain liable for their accuracy.

 

[drsmithy]

So you are comfortable with your accountant claiming expenses relating to your salary against entirely unrelated investments?

Good luck if audited.

Indeed. In Australia we only like to see people claiming expenses for entirely unrelated investments against salary.

 

[theblank]

If you are blending PAYG Salary with your investments then there may well be other matters that the ATO may not be too happy about.

but he isnt. I get what he has explained and its straightforward and nothing like you have said.

 

[oz_mark]

If you are blending PAYG Salary with your investments then there may well be other matters that the ATO may not be too happy about.

Don't tell all those negatively geared property inverstors that.....

 

[JohnK]

I think you need to do a lot more reading, and perhaps consider a new accountant and reconsider your source of financial advice.

If you are blending PAYG Salary with your investments then there may well be other matters that the ATO may not be too happy about.

Oh dear. Like negative gearing? I've been blending PAYG with investments in the same tax return since 1990. ATO is aware. I was 5-6 years behind once and had to pay extra tax in one of those years and was fined otherwise I would have been fine. Overall they owed me money but still fined although managed to reduce fine.

For a few years I was a contractor and collected GST and did BAS returns and tax return also included investments.

I won't worry too much about claiming bank charges on my tax return. Tax payers have been subsidised by my investments for a long time. Conscience is clear.

 

[lovetravellingoz]

Oh dear. Like negative gearing? I've been blending PAYG with investments in the same tax return since 1990. ATO is aware. I was 5-6 years behind once and had to pay extra tax in one of those years and was fined otherwise I would have been fine. Overall they owed me money but still fined although managed to reduce fine.

For a few years I was a contractor and collected GST and did BAS returns and tax return also included investments.

I won't worry too much about claiming bank charges on my tax return. Tax payers have been subsidised by my investments for a long time. Conscience is clear.

I think you are confused. I never said that you do not include your investments in the same return. Nor did I say that you cannot negative gear. I had both in my Tax Returns for decades.


Yes negative gearing means that you can claim a loss from one (or more) investment stream/s against income earnt as PAYG Salary income. This allowed.
Negative gearing does not mean that you can claim expenses from PAYG salary against an investment. This is not allowed.

Yes you consolidate it all in the one return, but you do not get to "blend" expenses from your investments with your salary. Each needs to be assessed against the income it generates. Credit card fees stemming from paying PAYG tax on you Salary are not a valid deduction on your investments.

 

[JohnK]

Negative gearing does not mean that you can claim expenses from PAYG salary against an investment. This is not allowed.

Yes you consolidate it all in the one return, but you do not get to "blend" expenses from your investments with your salary. Each needs to be assessed against the income it generates. Credit card fees stemming from paying PAYG tax on you Salary are not a valid deduction on your investments.

I think you are confused.

I don't claim PAYG salary expenses against an investment. I am paying provisional tax (yes the old term) on my investments and I am claiming back bank charges which anyone can claim. Next you are going to tell me I am not entitled to claim back any of my phone charges or internet charges as business expense against my investments.

For what it is worth I am overpaying PAYG tax by around $3000 every year to make sure I have paid enough tax. And this is taken out of my salary and not washed through a credit card to earn more points.

 

[Awesom Andy]

Everyone has their own tax situations. Something that someone can claim doesn't mean it applies to the next person. Unless you are their tax agent or have full knowledge of their financial situation, you can't really say if someone is claiming something correctly or incorrectly.

 

[Cruiser Elite]

Everyone has their own tax situations. Something that someone can claim doesn't mean it applies to the next person. Unless you are their tax agent or have full knowledge of their financial situation, you can't really say if someone is claiming something correctly or incorrectly.

That is an Awesom post - and a very Andy tip for all seeking / offering financial advice here.

 

[cove]

Sometimes those ATO accounts drain ones cash stash completely. I can see why people cheat but that would not apply to any of us in frequent flyer land.
I used to file just under a thousand tax returns up to 1983 before I did a career change. The Tax Act has a few more pages in it compared with 34 years ago.
I get my tax returns prepared by a tax accountant as that 34 year break could cause problems.

 

[Duffa]

Whoa Whoa Whoa.....
This is a cards thread for ATO points
Can we please stop giving JohnK nightmares and focus on core business

i.e. BOM Amplify is still good for ATO as of yesterday!

For the record; I don't claim the fees as a deduction for my wife, kids, neighbours etc.

 

[albyd]

Coles 'Platinum' MasterCard still working - did a tester payment last week. Points posted about a week after the transaction posted - used to post as soon as posted to CC. Must be a short delay with new owners Latitude Financial but still good result.

This will become my go-to non-Amex post June 15. Annual FB transfer limit to Velocity will limit its usefulness for BAS to me but I'm sure it might be handy for many. Effective earn rate 1:1 with 15% bonus to VFF.

 

[lovetravellingoz]

I think you are confused.

I don't claim PAYG salary expenses against an investment. I am paying provisional tax (yes the old term) on my investments and I am claiming back bank charges which anyone can claim. .

John this started as Denali stated: So. If you had a $120K personal income tax debt, not company, can you pay it via credit card to get points? If so, what credit card would you suggest?

You indicated: My accountant claims the credit card surcharge in my tax return.

A number of posters commented on credit card surcharge on payment not being a deduction for income tax.

When a poster asked you to clarify you indicated that it was for PAYG employee. You did not qualify in any way that you were not in fact referring to that in terms of the discussion or claiming the credit card surcharge.

So given the flow of the thread would you not think that I would assume that you were talking about credit card surcharge claimed on PAYG income? The extra clue for you was the ATO link that I posted.

 

[Reveen]

Just this arvo opened Friday's mail to see my sparkling new Platinum Kris Flyer Amex cards have arrived and valid to Jun 2021

I love being a member of this exclusive club. Especially on a day like today!

 

[Salem]

This is a little off the current topic but I thought I'd mention that I used a St. George Amplify Signature card for an ATO payment recently and the points posted.

 

[lovetravellingoz]

This is a little off the current topic but I thought I'd mention that I used a St. George Amplify Signature card for an ATO payment recently and the points posted.

Ta, as I had only recently done a test payment an was still waiting to see if the points appear.

 

[cove]

Yes one of my family members uses that CC too.

 

[slinky123]

I had 2 PAYGs totalling just over $5000 and used Qantas cash Mastercard to pay them. 1 point for every $2. Same rate as Amex but fee is less.

 

[Origin]

I had 2 PAYGs totalling just over $5000 and used Qantas cash Mastercard to pay them. 1 point for every $2. Same rate as Amex but fee is less.

I thought Qantas Cash was now 0.25 point per $1 for Local purchases?
EDIT on checking it seems to still be 1 point per $2. Surprised.