ATO (tax office) payments by credit card

[Ansett Nostalgic]

Just used Sniip since Payment Logic wouldn't work. Sniip charged 2.1%!

 

[prozac]

Just used Sniip since Payment Logic wouldn't work. Sniip charged 2.1%!

Must be operator error.

 

[Dr Ralph]

Can anyone confirm Sniip will definitely just count as a regular expense (rather than a govt one) for sake of hitting minimum spend on credit card?

Confirmed.

Post automatically merged: Jan 1, 2024

Very strange, cole mastercard digital can't be used to pay ato today. I wonder if its just a ATO thing and it would be temporarily.

This has been an ongoing issue, well reported on OzBargain.

 

[albyd]

What’s the point of blocking a card other than because the issuer doesn’t make any money out of us using it with the ATO? Activ GCs black the ATO for instance. Is this the same case? Blocking payment processors is a new level. Thought they would make more given the payment processors have to charge us more (and cry poor about it).

 

[Ansett Nostalgic]

What’s the point of blocking a card other than because the issuer doesn’t make any money out of us using it with the ATO? Activ GCs black the ATO for instance. Is this the same case? Blocking payment processors is a new level. Thought they would make more given the payment processors have to charge us more (and cry poor about it).

Spite, in my opinion.

 

[daft009]

What’s the point of blocking a card other than because the issuer doesn’t make any money out of us using it with the ATO? Activ GCs black the ATO for instance. Is this the same case? Blocking payment processors is a new level. Thought they would make more given the payment processors have to charge us more (and cry poor about it).

Perhaps a way to combat money laundering?

 

[albyd]

Perhaps a way to combat money laundering?

Could be, though while I don’t know anything about money laundering, I think it would be Ill-advised to use the ATO for money laundering. I suspect the ATO got sick of issuing refunds for mistaken over-payments & the GC issuers (I think there’s only one - Black Hawk Network - and their benevolence re using the cards with the ATO has come to an end. Shame AU is such a small market.

 

[shak151]

Looks like Heritage Bank has done this in the past and multiple complaints from customers forced them to reenable ATO payments.

Past petition: 76 people signed and won this petition

There is a new petition this year as well : Sign the Petition

 

[exceladdict]

Someone on ozbargain was bragging about overpaying the ATO by hundreds of thousands of dollars to generate points and then ask for refunds. And we wonder why we can't have nice things.

 

[albyd]

Wow. That would do it. I wonder how long ago that was. Nothing like a public servant to get a bee in their bonnet about processing all those refunds for not very accidental looking repeated over payments.

 

[TheRealTMA]

Someone on ozbargain was bragging about overpaying the ATO by hundreds of thousands of dollars to generate points and then ask for refunds. And we wonder why we can't have nice things.

Wouldn’t the points be taken back after the refunds?

if not it’s fraud and the bank would take a dim view.

 

[albyd]

If the refunds went to a bank account instead of to the source credit card …

 

[Dr Ralph]

Wouldn’t the points be taken back after the refunds?

Nope.

 

[Mark3000]

I've done some calculations regarding paying Brisbane City Council Rates via Sniip on Amex Platinum charge that might be helpful to some (and would be grateful for any advice if any better options)

Amex Platinum charge for normal spend =
= 2.25 points per dollar
= 1.125 Qantas points per dollar
= 0.75 KF points per dollar (0.87 if via velocity with 20$ bonus)

Amex Platinum charge for ATO & BCC spend = 1 pt/$ = 0.5 QF/$
BCC spend = 1 pt/$ = 0.5 QF/$ for 0.52% BCC fee (this is not charged at time of transaction but appears on next rates bill)

Paying BCC via Sniip offers 2 options
1. Direct pay with no Sniip fee = only 1 Amex pt / $ = 0.5 QF / $
ie $100 = 50 QF points for 52c = 1.04 c/ QF point

2. Paying BCC via direct debit via Sniip
- this incurs a Sniip fee, but gives full Amex points
Sniip fee = 1.29% + 0.52% BCC fee = 1.81% for 1.125 QF point

ie $100 = 112.5 QF points for $1.81 = 1.60 c / QF point

so paying via Sniip offers more than 2x as many points, but at a higher cost per point

Paying ATO changes these calculations because ATO payments on Sniip are charged at the business rate of 1.99% + GST which increases the cost per point more
Sniip fee = 1.99% + GST
$100 ATO payment via Sniip = 112.5 QF points for $2.189 = 1.94 c / QF point
but this would be reduced if fee is tax deductible

Am I doing this right?

 

[super5]

Yakpay using the Westpac Altitude Black is a good return. The Mastercard has the lowest fee and results in more air miles than either Visa or Amex. The fee is currently 0.8%. I showed the calculations for this upthread. Can link it to Xero or MYOB.

How can this be? Black cards are a premium card, which YakPay charges 1.25% for. Did YakPay do a mistake and think the Black cards are standard cards? Does any other bank's Black card work?

 

[prozac]

How can this be? Black cards are a premium card, which YakPay charges 1.25% for. Did YakPay do a mistake and think the Black cards are standard cards? Does any other bank's Black card work?

Mastercard has the lowest fee on Yakpay regardless of bank. It has recently gone up to 0.85%.
Feel free to use my referral.

 

[super5]

Mastercard has the lowest fee on Yakpay regardless of bank. It has recently gone up to 0.85%.
Feel free to use my referral.

Check again, Mastercard standard cards is 0.85%, Mastercard premium cards is 1.25%.

 

[Cynicor]

I've done some calculations regarding paying Brisbane City Council Rates via Sniip on Amex Platinum charge that might be helpful to some (and would be grateful for any advice if any better options)

Amex Platinum charge for normal spend =
= 2.25 points per dollar
= 1.125 Qantas points per dollar
= 0.75 KF points per dollar (0.87 if via velocity with 20$ bonus)

Amex Platinum charge for ATO & BCC spend = 1 pt/$ = 0.5 QF/$
BCC spend = 1 pt/$ = 0.5 QF/$ for 0.52% BCC fee (this is not charged at time of transaction but appears on next rates bill)

Paying BCC via Sniip offers 2 options
1. Direct pay with no Sniip fee = only 1 Amex pt / $ = 0.5 QF / $
ie $100 = 50 QF points for 52c = 1.04 c/ QF point

2. Paying BCC via direct debit via Sniip
- this incurs a Sniip fee, but gives full Amex points
Sniip fee = 1.29% + 0.52% BCC fee = 1.81% for 1.125 QF point

ie $100 = 112.5 QF points for $1.81 = 1.60 c / QF point

so paying via Sniip offers more than 2x as many points, but at a higher cost per point

Paying ATO changes these calculations because ATO payments on Sniip are charged at the business rate of 1.99% + GST which increases the cost per point more
Sniip fee = 1.99% + GST
$100 ATO payment via Sniip = 112.5 QF points for $2.189 = 1.94 c / QF point
but this would be reduced if fee is tax deductible

Am I doing this right?

Your numbers are fine. I was trying to figure out why I thought Sniip was ahead vs direct pay with the ato (rather than bcc in your example). Realised it’s because the Amex ATO direct fee is around 1.4% so May as well pay Sniip as it’s slightly but it cheaper c/point if you think it’s worth it.

But for BCC, if Amex payments don’t incur a surcharge directly (are you sure of this?) then your numbers work. Go direct

 

[prozac]

Check again, Mastercard standard cards is 0.85%, Mastercard premium cards is 1.25%.

So I am wrong. However I still pay only 0.85% since 1st Jan.

 

[Mark3000]

But for BCC, if Amex payments don’t incur a surcharge directly (are you sure of this?) then your numbers work. Go direct

Thanks mate,
For BCC paying direct, Sniip don't charge a fee, but the BCC do charge 0.52% (they add it on to your next bill)
This is paying via the Sniip app, scanning the circular bar code (not the linear BPAY one)