ATO (tax office) payments by credit card

[one9]

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[Stargazer]

I have been reading this thread for the past two hours. 476 pages is really demanding. Could I ask a newbie question- please bear with me as I haven’t found the answer yet. Some of the payment platforms require an ABN and/or membership of Qantas Business Rewards. I have neither. I need to make a personal payment to the ATO of $250,000 and I want to be able to use my credit card to access Qantas frequent flyer points. I want to use my iPad or PC to facilitate payments (one of the platforms that I was looking at is primarily a mobile app). Given that the ATO payment will be a single payment I need a platform that doesn’t cap monthly expenditure. It would also help if the platform offers a customer care centre easily accessible. Can anyone advise which platform is the best given my needs. Thanking you in advance.

 

[andye]

I have been reading this thread for the past two hours. 476 pages is really demanding. Could I ask a newbie question- please bear with me as I haven’t found the answer yet. Some of the payment platforms require an ABN and/or membership of Qantas Business Rewards. I have neither. I need to make a personal payment to the ATO of $250,000 and I want to be able to use my credit card to access Qantas frequent flyer points. I want to use my iPad or PC to facilitate payments (one of the platforms that I was looking at is primarily a mobile app). Given that the ATO payment will be a single payment I need a platform that doesn’t cap monthly expenditure. It would also help if the platform offers a customer care centre easily accessible. Can anyone advise which platform is the best given my needs. Thanking you in advance.

That's a decent sum and can see why you want to earn points.
This AFF article may be useful

How to Earn Points for Paying ATO Tax & Bills in 2023

Using a bill payment service such as B2Bpay, pay.com.au, Yak Pay or Sniip, you can earn points for paying tax by credit card in Australia.

www.australianfrequentflyer.com.au

I don't know if there are any non-ABN and non-app options but am intrigued as to why needs to be a single payment. ATO seems quite happy to accept deposits to my BAS and Income Tax Account in split payments (though only 5 split payments at a time).
If time is not tight and you can get over the ABN hurdle, might be worth applying for a credit card that offers the best returm

 

[coriander]

(one of the platforms that I was looking at is primarily a mobile app). Given that the ATO payment will be a single payment I need a platform that doesn’t cap monthly expenditure. It would also help if the platform offers a customer care centre easily accessible. Can anyone advise which platform is the best given my needs. Thanking you in advance.

I stand to be corrected but I don't think Sniip requires an ABN as their 1.5% fee is for personal purchases as well as a higher rate for businesses.

If your Amex card doesn't have a $250k limit, break up the amount into values less than your credit limit, pay that through Sniip, top up the cc, wait a day for credit to appear in your account, rinse and repeat. I perform this procedure quarterly with my BAS.

Sniip *is* a mobile app but is very easy to use. As an Android user, I'm unsure if Sniip works on iPad (I suppose if App Store let's you download it to your ipad, the answer is yes

 

[Stargazer]

Thanks for the reply Andye. Checked through the attached article and it didn’t really respond to my concerns. When you referred to NBN in your post am assuming you meant ABN? This is all new territory to me. Regarding the ATO and splitting payments assume this relates to business not personal income tax. My payment relates to payment to ATO in relation to capital gains tax. So assume a single payment required.

 

[jellybelly]

I stand to be corrected but I don't think Sniip requires an ABN as their 1.5% fee is for personal purchases as well as a higher rate for businesses.

If your Amex card doesn't have a $250k limit, break up the amount into values less than your credit limit, pay that through Sniip, top up the cc, wait a day for credit to appear in your account, rinse and repeat. I perform this procedure quarterly with my BAS.

Sniip *is* a mobile app but is very easy to use. As an Android user, I'm unsure if Sniip works on iPad (I suppose if App Store let's you download it to your ipad, the answer is yes

The question is do you believe 250,000 qantas points are worth $3,750?

 

[coriander]

Doesn't matter how many payments you make as long as it's done by the due date. I've split personal and business tax debts over many years.

Post automatically merged: Nov 24, 2022

The question is do you believe 250,000 qantas points are worth $3,750?

IMHO I'd think 250k KF points would be worth paying $3750, QFF less so.

 

[prozac]

Doesn't matter how many payments you make as long as it's done by the due date. I've split personal and business tax debts over many years.

Post automatically merged: Nov 24, 2022

IMHO I'd think 250k KF points would be worth paying $3750, QFF less so.

Not ATO but I have a projected equipment payment coming up of $125,000. The supplier wants 2% fee for card payments so it doesn't seem worthwhile? Anyone else concur?

 

[33kft]

My payment relates to payment to ATO in relation to capital gains tax.

I'm wary that situations differ but for me, I declared my CGT event in my personal income tax return, it was added on to my owed balance, and I paid it however I saw fit - as long as it was by the due date.

It didn't affect me paying it in instalments.

 

[Stargazer]

Doesn't matter how many payments you make as long as it's done by the due date. I've split personal and business tax debts over many years.

Post automatically merged: Nov 24, 2022

IMHO I'd think 250k KF points would be worth paying $3750, QFF less so.

Not sure why several posts suggested paying instalments. once receive notification from ATO usually have only a few weeks prior to due date. At least that’s my experience for personal income tax. the tax liability needs to be paid so why not in one hit. What are the benefits of instalments. Would value your input.

secondly, and I am coming from the perspective of yet to undertake my first flight - it seems from looking briefly at costs of business class travel that Mel/Nan is around $4500 and Melbourne/Singapore is nearly double that. Haven’t looked closely at the costs so could be way out. I would earn around 187000 frequent flyer points which would easily pay for business class flights to Singapore. So an outlay of $3750 would cover around double this cost in terms of flights. So as a newbie that sounds like a good proposition. What am I missing?

 

[coriander]

Instalments are useful when you have, say, a $60k debt and a $15k credit card limit and you want *all* the points.

 

[Stargazer]

Just did a check on cost of flights between Melbourne/Singapore return and can easily do this under $4500. So my assessment in previous post is inaccurate. Maybe an outlay of $3750 doesn’t equate in terms of value derived from Qantas points.

 

[coriander]

My thoughts back here:.

Post in thread 'ATO (tax office) payments by credit card' ATO (tax office) payments by credit card

 

[Kangol]

Not sure why several posts suggested paying instalments. once receive notification from ATO usually have only a few weeks prior to due date. At least that’s my experience for personal income tax. the tax liability needs to be paid so why not in one hit. What are the benefits of instalments. Would value your input.

secondly, and I am coming from the perspective of yet to undertake my first flight - it seems from looking briefly at costs of business class travel that Mel/Nan is around $4500 and Melbourne/Singapore is nearly double that. Haven’t looked closely at the costs so could be way out. I would earn around 187000 frequent flyer points which would easily pay for business class flights to Singapore. So an outlay of $3750 would cover around double this cost in terms of flights. So as a newbie that sounds like a good proposition. What am I missing?

Which card are you using? Sounds like Westpac Altitude Qantas Black (0.75 QFF points per dollar). If so, there is an annual cap of points awarded to $250k pa.
Beem doesn't have an ABN requirement.

 

[33kft]

Beem doesn't have an ABN requirement.

But does have a 2k limit per day

 

[coriander]

Not ATO but I have a projected equipment payment coming up of $125,000. The supplier wants 2% fee for card payments so it doesn't seem worthwhile? Anyone else concur?

My upper limit of acceptable fee is 1.5% if I'm getting my $ per KF mile (eg Amex Explorer 2 MR points per $, KF 1 point per MR point so effectively $1 spend gives one KF mile)..

Yakpay would be 1.32% Inc GST fee for Visa (MC 0.88% Inc GST) and could pay to both BSB/account and BPay accounts. Yakpay IMHO has Amex fees that are too high (~2%). Requires an ABN. No monthly limit.
Sniip BPay only, 1.5% Inc GST fee on Visa, MC, and even Amex. No monthly limit, no ABN requirement. Hence best paying with Amex as rewards are generally greater and no monthly cap.
Beem It - $2k limit per day impractical for your $125k debt.

 

[andye]

Thanks for the reply Andye. Checked through the attached article and it didn’t really respond to my concerns. When you referred to NBN in your post am assuming you meant ABN? This is all new territory to me. Regarding the ATO and splitting payments assume this relates to business not personal income tax. My payment relates to payment to ATO in relation to capital gains tax. So assume a single payment required.

The article was really to give you a consolidated view of the available options and fees.

Apologies about the NBN/ABN typos which I have now corrected.

As others have said you need to do the sums on the value of using the payment method-I imagine that many of the enthusiasts here are claiming the fees as a business tax deduction-expect you can't do this for a personal CGT event but I'm not an accountant.

I usually know roughly what tax I am due to pay at various times. ATO are happy to take payments in advance. I have occasionally overpaid and received a refund . Obviously you lose any interest you might have been receiving by paying early so it's down to sums again.

I personally wouldn't pay more than 1c/QF point but would go to 1.5c/Singapore Krisflyer point (combination of reasons-generally cheaper award chart, lower copay and more availability).

 

[Kangol]

But does have a 2k limit per day

Are you ... er, sure? Maybe have a look at some previous posts in this thread

 

[kkl]

anyone beem stopped working on their dragon card? - NON ATO
"Credit cards cant be used here"

worked on tuesday, tried today CC not accepted.

tried deleting and re-adding card, doesnt work

 

[exceladdict]

anyone beem stopped working on their dragon card? - NON ATO
"Credit cards cant be used here"

worked on tuesday, tried today CC not accepted.

tried deleting and re-adding card, doesnt work

Don't know who you are trying to pay but if the seller doesn't accept BPay from credit cards (eg. paying another credit card) Beem it rejects it in my experience