ATO (tax office) payments by credit card

[jellybelly]

I found that I could only get access to the corporate trustee for my family trusts and SMSF which the ATO would then not transfer that credit to the underlying trust/SMSF. I now just try to get started with my payments as early as possible when my accountant tells me I have a payable so I can make sufficient payments to reach "target" before the due date - kind of tedious but works - not as well as before but someone's got it in their head that people are using the ATO for money laundering or some other evil activity. Whilst I'm sure it will display my lack of knowledge of such things, why would anyone launder money through the ATO - isn't that just poking the bear? Happy to be corrected.

I think what happened was people were buying discounted prepaid credit cards, overpaying the ato, then asking for a refund to their bank accounts.

 

[unfunkable]

Why can’t you just pay into the activity statement account?

It's a max of 15 per day...10 via the mygov website and 5 via the easypay website. I need to do more then 15 per day.

 

[wohoo]

It's a max of 15 per day...10 via the mygov website and 5 via the easypay website. I need to do more then 15 per day.

The only process left is pay a higher fee at 0.85% with sniip

 

[cathalm8]

Thanks for the heads up - looks different to the site I usually use ATO - Card Payment

I'll log in using my MyGov ID and try it out. 15 payments sounds like alot easier than 5 a day. At $1,247.50 per day, need to get started well before the due date. This will boost daily payments to $3,742.50 per day - better than nothing - though I imagine if the bill is large enough, this won't work either. The $250 Coles MC GCs are a good option otherwise for us mere mortals at least while the fee free offer continues. Not sure if it's worth the effort/cost after that.

I used 10 of those coles cards yesterday to pay off some of my ato balance. I was wondering how long it usually takes to show the reduction in outstanding balance? Is there somewhere you can see a list of the payments made as I cant seem to find it? thanks

 

[wchiri]

Takes a couple of days at least. Then it'll show up as a single payment.

 

[MARTINE]

I used 10 of those coles cards yesterday to pay off some of my ato balance. I was wondering how long it usually takes to show the reduction in outstanding balance? Is there somewhere you can see a list of the payments made as I cant seem to find it? thanks

Go to myGov and your ATO account summary of payments. They don't show for 4 days


You will receive interest at current rate around 6.9% if you pay off an ATO debt more than 14 days prior to due date which I do as soon as incurred (and you have no history of late lodgments or payment or outstanding debt).
I would lose track of all these payments by gift card and worry I’d underpaid if I used this method !!
I presume its for the points. I get 1:1 amex which is good enough for me.
Overpayments in my experience just get credited to your next debt. I have done this occasionally accidentally.
Only ever got cash in bank via early payment interest

 

[NoName]

You will receive interest at current rate around 6.9% if you pay off an ATO debt more than 14 days prior to due date which I do as soon as incurred (and you have no history of late lodgments or payment or outstanding debt).

How do you get them to pay you this? I’ve had a credit balance that they refuse to refund for 10 months - no interest paid to me.

 

[MARTINE]

How do you get them to pay you this? I’ve had a credit balance that they refuse to refund for 10 months - no interest paid to me.

A credit balance differs from early payment of a debt like your annual tax return obligation.
The former - I found - just gets credited to your next debt whilst the latter is interest not repayment of an overpayment.

 

[MARTINE]

How do you get them to pay you this? I’ve had a credit balance that they refuse to refund for 10 months - no interest paid to me.

Interest on overpayments | Australian Taxation Office

Check which overpayments we pay interest on and how to calculate the interest amount.

www.ato.gov.au

It looks like this may apply if your overpayment fits the examples about. Many do show offsets can occur against a existing debt. If you find this is the case and you meet the criteria - call again and cite this and taxpayer charter for timeliness . If no joy, after exhausting all channels - you could communicate with your local fed MP via email
ATO must respond to them promptly with response

 

[cathalm8]

Go to myGov and your ATO account summary of payments. They don't show for 4 days


You will receive interest at current rate around 6.9% if you pay off an ATO debt more than 14 days prior to due date which I do as soon as incurred (and you have no history of late lodgments or payment or outstanding debt).
I would lose track of all these payments by gift card and worry I’d underpaid if I used this method !!
I presume its for the points. I get 1:1 amex which is good enough for me.
Overpayments in my experience just get credited to your next debt. I have done this occasionally accidentally.
Only ever got cash in bank via early payment interest

Wow I didn't know this. 6.9% is pretty good. Way better than any savings rate. I shoukd pay my bill earlier next time then?

 

[MARTINE]

Wow I didn't know this. 6.9% is pretty good. Way better than any savings rate. I shoukd pay my bill earlier next time then?

Thats been my experience but YMMV
Good luck!

 

[lilkid28]

You will receive interest at current rate around 6.9% if you pay off an ATO debt more than 14 days prior to due date which I do as soon as incurred (and you have no history of late lodgments or payment or outstanding debt).

6.9% ?! That's really good to even park some spare cash there until it gets deducted for future tax payments.

 

[Ktan89]

Just wondering.. What does everyone use to pay NSW Landtax?

 

[MARTINE]

6.9% ?! That's really good to even park some spare cash there until it gets deducted for future tax payments.

Think its only interest on what you owe and pay in advance.
Overpayment is just that - and treated as I said upthread (with link).
That said, for a substantial debt paid months in advance it is sizeable

 

[cathalm8]

Think its only interest on what you owe and pay in advance.
Overpayment is just that - and treated as I said upthread (with link).
That said, for a substantial debt paid months in advance it is sizeable

Are you then taxed on the interest made from the 6.9%?

 

[MARTINE]

Are you then taxed on the interest made from the 6.9%?

Sadly yes!

 

[MARTINE]

Sadly yes!

It reminds me of when I was a child and used to love a TV screen with an image of same TV with the TV screen inside which in turn had that image getting smaller and smaller and smaller….
What starts off one size becomes ever diminishing!!

 

[PLANT]

Anyone else today get money refunded from overpayment by ATO.... find it odd when on their PAYG list ... it's been sitting there a while too and not deducted from last tax return due amount.

 

[andye]

Anyone else today get money refunded from overpayment by ATO.... find it odd when on their PAYG list ... it's been sitting there a while too and not deducted from last tax return due amount.

I usually have to ask
Assuming the money has landed and it's not just an sms informing you of your good fortune

 

[PLANT]

In bank account