Tax Deductibility of Rewardpay payments

[bigray73]

Hi all,

Just a quick question. I have been paying our fiscal friend using a Bank issued AMEX. In order for the credit card surcharge to be tax deductible, I have been putting the AMEX into a positive balance prior to paying.

If I were to use Rewardpay instead, I would presume that the fee would be tax deductible and there would not be the same requirement to put the AMEX into a positive balance prior to paying as now the fee paid to Rewardpay would replace the credit card surcharge.

Is there any penalty or problem with putting American Express Explorer into a positive balance?

Thanks very much in advance

 

[cove]

Well BR73 you should probably ask this question when you are talking to your accountant/tax agent.
If the cost per point is quite high you should exhaust all the first year sign ons for bonus points at a far lower cost.
For QF points there is a MasterCard that could get you some for 0.6 cents each but you should read the ATO thread to get the info on that hard to get credit card.
For VA points there is a Visa card that works but the ATO fee has just increased on July 1st.
What is the final cost of Rewardpay per point?

 

[daft009]

I use rewardpay and earn 2KF/$1 uncapped so see great value in it!
Fees are 2.4%+GST, GST is easily claimable, rest depends on your accountant

My long term average is 2% considering surcharge free AMEX and rewardpay combined...I have no qualms.
Also helps me with cash flow

 

[albyd]

I've used RewardPay with my Explorer mostly for tax deductible costs. Way I see it, you get 2 MR Ascent per dollar. Costs 2.6c =1.3c per point or 0.65c after tax. I can live with that.
For non tax deductible expenses (like ATO for me), I think 1.3c per MR is getting up there at the max I'd be prepared to pay. I'll keep chasing cheaper alternatives in the meantime. Assuming as they're progressively shut down, RewardPay will be the only game in town.

 

[daft009]

From the time saving aspect when you have a business to run/manage. 1.3c is worth it the way I see it.

Imagine how much time redeeming $100 gift cards would take online on the ATO site one at a time.

 

[albyd]

Agreed there aren't enough hours in the day to pay larger bills $100 at a time and generate a living. Does take some time to hunt down $100 GCs and keep track of them. Have only paid modest amounts with the $100 method and larger ones with a combo of my Citi US card and Diners MC. Will now need to use RewardPay for the larger ones to be more time effective.

 

[wohoo]

As far as I am aware after checking with Brain Trust over at the Business for Doctors.

I can not claim credit card surcharge for paying the BAS for personal service income. Dunno if this applies to you, but just letting you know.

 

[KLN]

i'm using Reward Pay for business and ATO spend also, and i direct the surcharge to my accounting stream of "Bank Fees and charges"