ATO (tax office) payments by credit card

[Stephen65]

IMHO companies should be able to deduct the fee in the same circumstances as sole traders can because the same rules apply to both concerning the deductibility of interest paid on borrowings to pay tax and thus the same rules logically should also apply to CC fees on a borrowing to pay tax:

ATO ID 2006/269 - Deductions and Expenses: interest incurred on moneys borrowed by a sole trader to pay income tax

Which means, I believe, that the fee is deductible under s8-1 whether or not the card is in credit. But check with your accountant. This is not advice.

 

[PLANT]

This is also bringing families closer together...haha...hey Dad send us your Tax bill....paid by me...hahahha...I'll transfer the money son via the pay anyone.
Son: get the company tax as I need it for the Jetstar card 5K ha ha ha

 

[burmans]

Oh, I am so sorry to hear that Lindsay. What a waste.

Look on the positive side it means you have overpaid tax to data and you would have got points on that money you are now getting back.

 

[QF WP]

No, it means that my negative gearing is working well by reducing my taxable income, almost had it down to my wifes' level

 

[cove]

I can still remember the good old days when taxpayers got excited when they received a tax refund.
My youngest is looking forward to credit carding his 2011 final assessment with a point a dollar card. He will get enough to get to the soccer final in J.
Go Glory!

 

[drron]

Well courtesy of the ATO mrsdrron and I have our J awards to SIN next month.On SIA so after tax deduction and SIAs above average fees each ticket cost us $1000. Not bad for doing something I had to do anyway.

 

[cove]

I think I am in big trouble.
SQ have just switched planes for SIN-LHR so last night Mrscove was notified she has been upgraded to Suites from First.
Mrscove does not like going back to anything like ......
JS has created a monster problem unless I can find more taxes to pay.

 

[QF WP]

Congratulations Mrs cove on your most fortuitous aircraft substitution.
Alas, poor cove, his points balance is in trouble in the future

 

[pagingjoan]

I think I am in big trouble.
SQ have just switched planes for SIN-LHR so last night Mrscove was notified she has been upgraded to Suites from First.
Mrscove does not like going back to anything like ......
JS has created a monster problem unless I can find more taxes to pay.

What a wonderful outcome!
That - and the late summer Melbourne sunshine - have made my day.

 

[KLN]

KLN you are one of our success stories. Enjoy the European vacation...it should be really good fun.

Thanks Cove and Lindsay.

just did the 3rd Quarter Bas/PAYG - small this quarter............$ 44,510. Westpac Amex Platinum X 3. who cares what the surcharge is.

and on the "bringing families closer together" , yes, voluntarily look after MIL's finances too...........no probs. i'll sort that one out too. hehehe

Ms KLN Junior (16) off at 6.15am on DJ tomorrow morning to stalk 1 Direction, and to stay with grandparents after storing her suitcase at Southern Cross for the day, and then using her own points to return to Sydney, next week.
Oh well saves annoying me all of next week i suppose

 

[QF WP]

Nicely done KLN, that'll help the points balance.

Good to hear you've started the kids early on the earning and burning of FF points.

Spoke to cove today and he is certainly very happy with SQ's aircraft substitution but he'll need a squillion points

 

[kpc]

I think cove is an undercover ATO agent given the enthusiasm he portrays about us paying tax.

Actually, I have a small tax bill coming up that should earn me enough points for a Syd-Sin J return at a cost of $288 in credit card surcharges. Go cove and the ATO!!

 

[PLANT]

Alright I'm calling in the PRO's for this one:

1. Have Jetstar Plat card $5K Limit....need about 2K to get the 5K(receive 10K bonus points)
2. Have a nice $6850 BAS bill on family business.

A. So DO I pay $2K NEEDED on the Jetstar?
B. Do I get them to use their CBA PLAT Mastercard to pay bill? (Accountant gets fee back?)
C. Split the bill and use both?
D. Clear the JETSTAR debt and then pay BILL on only this card?
E. Use the Gold Westpac Altitude American Express card for the bill?

The BEST OPTION IS?

 

[cove]

Best option appears to be D if you are getting 10,000 bonus points plus 6,850 points on your Jetstar Credit Card.

 

[cove]

You may also get points on the $32.88 ATO fee that will be charged on your Jetstar Platinum MasterCard so it may work out at a total of 16,883 points for a few minutes effort.

 

[PLANT]

Cheers COVE
Better than going the VIRGIN option on other cards?

So How many DAYS does it take to clear debt and then pay 5K and then clear debt?
Cannot load card into CREDIT and then pay bill to get points?
ie. Put 12K on card and then pay tax bill?

 

[cove]

You can BPay ino the card and then pay the bill in one go.
So far the only credit cards that I have found that wont allow a credit balance are some American Express (directly branded) cards.
Bpay in the morning should be available next day so if you BPay on Monday you should be able to pay BAS on Tuesday.
Your Amex fee would be $57.06 and no Jetstar 10K bonus.

 

[PLANT]

Sorry to go on about this BUT:

I can BPAY\Load a $5K LIMIT card with 12K.
PAY $6850 BAS .
Get QFF points(even though in credit)????????
Only exception is American express BRANDED cards.

 

[cove]

Yes you can BPay the MasterCard ino credit to pay a bill that exceeds your account credit limit.
I would expect you would earn those QFF points that were listed.
American Express cards that are directly issued by them are restricted from going into credit so they may stop the card.
You can put a Westpac Amex card into credit to pay a bill as Westpac is the issuer

 

[moa999]

What Amex cards can't go into credit??
Have definitely put my Plat Charge into credit for ATO bill, albeit only for a day.

But then switched to the Woolies Qantas card.

Does anyone know if the charge is considered a "purchase" the 1.99% interest rate for 6m is too good (special offer) so might shift to the Plat Credit
http://www.americanexpress.com/australia/pdfs/aus_termsandconditions_199_q1_2012.pdf