ATO (tax office) payments by credit card

[NM]

I just checked my card statement. There are two transactions, one for the tax and another for the fee.

That way its seen as a "service fee" and hence subject to 10% GST . It must be a 0.6% surcharge plus GST.

 

[docjames]

Is the % fee tax-deductable?

 

[oz_mark]

That way its seen as a "service fee" and hence subject to 10% GST . It must be a 0.6% surcharge plus GST.

I don't think so

A card payment fee of 0.67% of your payment applies to transactions made using your Visa or MasterCard credit/debit cards. This fee is the non-GST component of the fee the ATO incurs from its banker for these transactions.

 

[edman]

Is the % fee tax-deductable?

Yes absolutely

 

[js]

It would be like any normal tx... it would just be one charge to the card.

As others have posted above, just to confirm it definitely posts as two separate transactions to the card: one for the amount of tax remitted and one for the credit card service fee.

From the (outsourced) ATO payment page:

The details will be displayed as ATO payment and Card payment fee – ATO on the cardholder's statement.
​

 

[Flashback]

As others have posted above, just to confirm it definitely posts as two separate transactions to the card: one for the amount of tax remitted and one for the credit card service fee.

From the (outsourced) ATO payment page:

The details will be displayed as ATO payment and Card payment fee – ATO on the cardholder's statement.
​

That would have been handy during the big AMEX promotion

 

[vilemerchant]

Since you're paying the fee by CC the fee should of course be subject to another fee of 0.67% etc etc etc

 

[NM]

I don't think so

If this is the non-GST component, what do they do with the GST component?

 

[edman]

If this is the non-GST component, what do they do with the GST component?

They claim it back from themselves

 

[albatross710]

They claim it back from themselves

Please don't encourage them.....lol

 

[albatross710]

Hi,
the ATO is accepting credit cards for tax payments on a trial basis through to 17 April 2009.
ATO has some details of the trial on its website.

Just to advise that they are still accepting payments as of this morning, 18th April.

The site still says trial.

 

[wallacej]

So I paid yesterday with my citibank gold card at 1 ppd so that means 3800 points for the cost of about $23. I think that is worthwhile (again, all depending on what you do with the points).
I would like to hope they continue this.

 

[cove]

On Citibank Gold card is there a limit on the $1 per point and what is their annual charge and downsides?

 

[PaulZ]

The ATO are now accepting AMEX during this trial program.

The charge for using AMEX is 1.02% compared to 0.67% for Mastercard and Visa.

Lets hope the ATO turns this trial into a permanent payment option - and they negotiate the fees down a tad!

 

[js]

The ATO are now accepting AMEX during this trial program.

The charge for using AMEX is 1.02% compared to 0.67% for Mastercard and Visa.

Lets hope the ATO turns this trial into a permanent payment option - and they negotiate the fees down a tad!

That's great news, thanks for posting.

Shame I already paid most things by Citi Visa... Oh well..

Hopefully this will become a permanent payment option at the ATO. Certainly makes me enthusiastic about paying taxes, which I dare say is a first...

 

[serfty]

Hmm, this becomes interesting with Amex.

$1000 in BAS payment has a nett cost of $1010.20 and can earn me 1515 MR points ... I (personally) value MR points at at least 2½¢ each so for $10.20 I'm getting at least ~$42 in value by using Amex.

 

[albatross710]

The ATO are now accepting AMEX during this trial program.

That is good news. Mrs Albatross will be heading off even sooner.

I find that racking up pts through the smaller purchasers adds some complexity to our company accounting. Back of the envelope calc shows I can triple my monthly accumulation just by juggling monthly payments to the ATO and including cash flow that had not previously been available to be 'clipped' for FF pts.

ATO accepting Amex, it cannot last.

 

[cove]

I think if you can pay your BAS up to $10k each time using an AMEX 1.5 points per dollar card and it will cost $102 including gst.The net cash paid of about $93 a time should be tax deductible so you get 15,000 points for this under this trial.
Deduct your tax rate and you have your real net cost for the points and yes it is pretty low.
Ask an expert on whether putting personal taxes on the AMEX gives you the same result but even if it isnt you are buying points reasonably at 0.68 cents per point.

 

[serfty]

Hmm, this becomes interesting with Amex.

$1000 in BAS payment has a nett cost of $1010.20 and can earn me 1515 MR points ... I (personally) value MR points at at least 2½¢ each so for $10.20 I'm getting at least ~$42 in value by using Amex.

Good point about the possible tax deductibility of the charge - that reduced the effective cost in my $1K example to ~$6.92 for those 1,515 MR points.

I refer to Amex, as the card I'd employ is a Plat, uncapped, with Bonus 50% for first $100Kpa - unlike my (and most) Visa's.

 

[edman]

I refer to Amex, as the card I'd employ is a Plat, uncapped, with Bonus 50% for first $100Kpa - unlike my (and most) Visa's.

Yes its a bugger that its only1.5 points to $100k, so like you my cost per points will be higher as I reach my limit already. Not wanting the hassle of another account either...