Earning frequent flyer points for tax payments to the ATO has become increasingly more difficult over recent years. Most credit cards no longer award points for ATO payments. And of those credit cards that still do, many have a reduced earning rate for government charges.
If you own a business and have a large tax bill, the good news is that there are other ways to earn extra frequent flyer points when paying the ATO. A surcharge does apply to these payments, but this could be offset by the valuable points being earned. In some circumstances this credit card surcharge may also be tax-deductible, but we recommend that you discuss this with your accountant.
B2Bpay and RewardPay are two services that can help you to earn extra points when paying business expenses. You can use these services to pay the ATO using a credit card that wouldn’t normally award points with the ATO. You’ll pay a fee for the service, but you’ll also earn credit card reward points for the transaction at the full rate.
B2Bpay charges the following fees, including GST, for credit card payments:
- Visa / MasterCard standard cards: 1.32%
- Visa / MasterCard premium & corporate cards: 1.705%
- American Express and Diners Club cards: 2.64%
- International cards: 3%
These fees are higher than the credit card fees charged by the ATO itself. But by paying with B2Bpay, you’ll earn points for the transaction even if your credit card normally excludes points for ATO payments.
B2Bpay works in partnership with Qantas Business Rewards. In addition to the points earned on your credit card, you’ll earn Qantas Business Rewards points for B2Bpay payments. The normal earn rate is 1 Qantas points per $100. But any payment to a B2Bpay “bonus biller” partner will earn an increased rate of up to 1.5 Qantas points per $1. Unfortunately, the ATO is not a bonus biller.
You will need an ABN to create Qantas Business Rewards account.
B2Bpay is also currently offering 2,000 bonus Qantas Business Rewards points to new members that complete their first payment by 31 August 2018. This is in addition to the current Qantas Business Rewards offer of 5,000 bonus points if you earn at least 500 Qantas Business Rewards points with a new program partner by 30 September 2018.
Meanwhile, RewardPay only offers payments using American Express credit cards. Its fee is identical to the B2Bpay fee of 2.4% plus GST, or 2.64% including GST, for Amex payments. With RewardPay you can pay any bill as long as you have an Australian Amex card.
Beware that you should only pay business expenses with a business credit card. Charging large business expenses to a personal credit card could result in your card being cancelled and the points forfeited.
Join the discussion on B2Bpay on the Australian Frequent Flyer forum: B2Bpay – where is the list of massive bonus billers
