Gov. targets unfair credit card surcharges

[wandering_fred]

It also depends if your accountant is willing to push the travel point.
Mine basically said if you travel from A to B, you an deduct it for a year. Does not matter that you change contracts and/or clients.

But then again that was twenty years ago.

Happy wandering (if your accountant will agree)

Fred

 

[Jousams]

Somewhere Mrs Excel worked used to have a lot of success encouraging people to spend more by having an eftpos minimum just above their traditional 'average purchase price', or else incur a 50c surcharge.

Most would prefer to buy a $2 pack of gum, to go back to the analogy, than spend $0.50c on a surcharge, to get over the $10 minimum.

Worked quite well for her manager, actually.

The local newsagency has sold (quite) a few lottery tickets & scratch-it's by having a $10 minimum when I go and buy the paper.

I don't know why I can't remember to take cash....

 

[ComeFlyWithMe]

It's not that simple. Seriously.

I am a full time employee whose job is in Brisbane. Company not interested in employing me as a contractor.

Not that simple to create 2 pseudo jobs that may allow me to claim some of the flight and accommodation costs.

So that rules me out of any benefits afforded to someone who reads their emails in Sydney and works in Brisbane which is a shame because if I wasn't commuting I wouldn't have a job.

Resign, then offer your services as a contractor (lol).

Actually I did that years ago and took a few clients with me

 

[JohnK]

Resign, then offer your services as a contractor (lol).

Actually I did that years ago and took a few clients with me

LOL. We don't have clients. Less than 3 years for long service. Then assess the situation again.

My main goal would be to retire, spend my money and then let the taxpayers fund the rest of my retirement. And if that doesn't work then I am going to minimise the tax I have to pay on my hard earned money.

 

[Caversham04]

Seriously it IS that simple. I am in EXACTLY the same boat. Full time employee, Job in a different city. No 2 pseudo jobs. No reading emails at home to justify claiming travel. Have claimed at least 20% of my travel.

Would you mind sharing the basis for being able to claim? I have had to take a job in a different state and commute on a weekly basis. I can claim LAFHA for the first year for my accommodation and food expenses but my accountant said a flat "no" when I asked about claiming a tax deduction for flight expenses, on the basis that you cannot claim your travel to / from your usual place of work.

 

[ComeFlyWithMe]

Would you mind sharing the basis for being able to claim? I have had to take a job in a different state and commute on a weekly basis. I can claim LAFHA for the first year for my accommodation and food expenses but my accountant said a flat "no" when I asked about claiming a tax deduction for flight expenses, on the basis that you cannot claim your travel to / from your usual place of work.

You can claim when travelling from one workplace to another. Home business opportunity anyone?

 

[Caversham04]

You can claim when travelling from one workplace to another. Home business opportunity anyone?

Unfortunately, this doesn't apply - I am travelling from home to my usual (sole) workplace, with my personal circumstances meaning that I need to take an inter-state flight to get there. I am also a direct employee of the company (rather than a contractor). My accountant was very clear that the travel can't be claimed under these circumstances, so I'd be very interested to know the basis behind Medhead's statement about being able to claim 20% of his travel as his circumstances appear to be the same..........

 

[ComeFlyWithMe]

Unfortunately, this doesn't apply - I am travelling from home to my usual (sole) workplace, with my personal circumstances meaning that I need to take an inter-state flight to get there. I am also a direct employee of the company (rather than a contractor). My accountant was very clear that the travel can't be claimed under these circumstances, so I'd be very interested to know the basis behind Medhead's statement about being able to claim 20% of his travel as his circumstances appear to be the same..........

It depends on where you start work that day. If you start work at home, travelling to a second workplace can be deductible. Do you carry a laptop? That is a tool of trade. Do you work when you get home? That return may be deductible also.

 

[MEL_Traveller]

Looks like the hearings started in Canberra today into the credit card surcharge issue. Airlines were facing a grilling.

The package included a Qantas representative arguing that the fees charged still leaves Qantas under collecting. Which might be true - but apparently qantas collates their entire world-wide credit card fees and divides them solely between us Aussie flyers.

An 'Australia tax'.

That's right... cue music... 'feels like home to me, feeeeels liiiiiike hooooome ta meeee'

 

[Milefest]

The package included a Qantas representative arguing that the fees charged still leaves Qantas under collecting. Which might be true - but apparently qantas collates their entire world-wide credit card fees and divides them solely between us Aussie flyers.

I'd feel a lot better about paying the credit card fee if they hid it away in the taxes section of the invoice

 

[Flying Fox]

Another update today -

Credit card perks, surcharges to fall under new RBA rules

A couple of snippets -

Previously these cards had not been subject to regulation on interchange fees, but they will now be included in the 0.8 per cent cap.

...

Qantas currently charges customers $7 for domestic travellers paying on credit, while Virgin Australia charges a flat $7.70 "booking and service" fee, which includes its cost for accepting credit cards.

 

[straitman]

Another update today -

Credit card perks, surcharges to fall under new RBA rules

A couple of snippets -

Previously these cards had not been subject to regulation on interchange fees, but they will now be included in the 0.8 per cent cap.

...

Qantas currently charges customers $7 for domestic travellers paying on credit, while Virgin Australia charges a flat $7.70 "booking and service" fee, which includes its cost for accepting credit cards.

There is also this article re the ACCC urges shoppers to dob in retailers for excessive surcharges

Seems we might be heading in the right direction at last.

 

[wandering_fred]

I wonder how much of the "internal infrastructure costs" the retailers will attempt to include in the costs of accepting "plastic". It appears some can be added to the "bank charges" under the legislation.

Happy wandering

Fred

 

[travelislife]

I wonder how much of the "internal infrastructure costs" the retailers will attempt to include in the costs of accepting "plastic". It appears some can be added to the "bank charges" under the legislation.

Happy wandering

Fred

And this is exactly why the 'booking and service fee' rort used by the airlines and ticketing agencies will continue! They argue it is not a credit card fee!

 

[dajop]

I wonder how much of the "internal infrastructure costs" the retailers will attempt to include in the costs of accepting "plastic". It appears some can be added to the "bank charges" under the legislation.

No doubt all those credit card terminals QF and VA have in every small town and suburb cost a lot to set up and maintain .....

And this is exactly why the 'booking and service fee' rort used by the airlines and ticketing agencies will continue! They argue it is not a credit card fee!

But it would be difficult to maintain such a big differential between between different "booking and service fees" based on different modes of payment. For a $700 booking the booking and service fee for credit card payment should only be a few dollars more than the booking and service fee for BPAY or debit card payment. Not $30 more. Ideally it should follow the EU model, where you see flight costs (sans luggage) for different types of payment on the first screen .... not the last after entering all details.

 

[JohnK]

So the airlines will only be able to charge a % credit card surcharge for flight bookings. So possibly a surcharge of $0.79 for a $79 flight and a surcharge of $9.99 for a $999 flight.

Sounds fair to me but how long before they include a booking fee as well as the credit card surcharge?

As I said in another thread corporate greed knows no bounds.

 

[MEL_Traveller]

I wonder how much of the "internal infrastructure costs" the retailers will attempt to include in the costs of accepting "plastic". It appears some can be added to the "bank charges" under the legislation.

Happy wandering

Fred

lemme gaze into my crystal ball... maybe $7 and $30?

 

[RAM]

So once the name has been charged to "service" fee then the ACCC can respond to complaints and request a company, say Q, to justify what charges they incur servicing the flight booking and payment online.

A VERY easy figure to find actually.

About a comment back in the 2015 end of the thread about the constituent companies doing the wrong thing being the core backers of the Liberals. Analysis of AEC donations over the last 15 years reveals that (HUGE SURPRISE NOT) the majority of donors making large donations - make large donations to BOTH major parties.

I wonder why?

NOTE: my Freudian slip in first line; 'charged' instead of 'changed'. I was going to correct it but when I noticed where the 'r' vs 'n' keys are on the keyboard I thought I'd let my sub-conscious win!

 

[MEL_Traveller]

So once the name has been charged to "service" fee then the ACCC can respond to complaints and request a company, say Q, to justify what charges they incur servicing the flight booking and payment online.

A VERY easy figure to find actually.

i don't think qantas hides their calculation of their credit card fees... they take their world-wide fees and divide them solely between passengers ticketing in Australia. They don't charge credit card fees in most other countries for they have to recoup it here.

Not sure whether that will pass the 'infrastructure' test?

 

[RAM]

i don't think qantas hides their calculation of their credit card fees... they take their world-wide fees and divide them solely between passengers ticketing in Australia. They don't charge credit card fees in most other countries for they have to recoup it here.

Not sure whether that will pass the 'infrastructure' test?

Try finding it in any of their statutory filings...