ATO (tax office) payments by credit card

[kpc]

So with the repreive, what cards are people actually planning to use to pay the ATO, iirc only NAB business cards and AMEX (at reduced rate) cards actually accrue points.

Or has this all been about non serious points earners wanting the extra 44+ days of credit

I have all 3, and probably be using my AMEX Plat Bus since the others have a credit limit

NAB Qantas Business Signature which is 0.66 Qf pts per $ spent up to 50K per statement period.

But I prefer Sq / Velocity pts (as Sq generally has better award availability) so Amex which only earns 0.5 Velocity or 0.33 SQ pts per $ spent.

I could also use my US Amex but then I woild be subject to Fx fluctuations.

 

[Ktan89]

The government made a rod for their own back with the credit card changes. Now they have to deal with the consequences.

Ultimately we will pay for it though. Its an endless cycle

 

[lovestotravel]

So with the repreive, what cards are people actually planning to use to pay the ATO, iirc only NAB business cards and AMEX (at reduced rate) cards actually accrue points.

Or has this all been about non serious points earners wanting the extra days of credit

I have all 3, and probably be using my AMEX Plat Bus since the others have a credit limit

Amex Plat Charge

Ultimately we will pay for it though. Its an endless cycle

There is a trend...

 

[MelbFlyer]

So... more government spending right? Someone's has to cover the cost

Ultimately we will pay for it though. Its an endless cycle

Absolutely - all these things (removal of surcharges, government spending, increased cost of goods) will just fuel inflation, then surprise surprise, the (clueless) RBA will then re-step in to raise rates again.

 

[transpactraveller]

The government made a rod for their own back with the credit card changes. Now they have to deal with the consequences.

The RBA, which operates independently of the government, removed a rule that prevented the card networks imposing a surcharge ban. Australia & NZ were global outliers in having this rule.

There was no legislation introduced or changed, and no vote in parliament. Surcharges have not been made illegal by the government.

 

[albyd]

Didn’t the government refer the matter to the RBA with the recommendation it make these changes?

 

[transpactraveller]

Didn’t the government refer the matter to the RBA with the recommendation it make these changes?

According to Square, the RBA review was initiated after growing corporate and business pressure, most notably from the NAB CEO who publicly condemned surcharging as "outdated and outrageous".

There was no formal government referral or recommendation to the RBA to do this.

 

[lovestotravel]

Absolutely - all these things (removal of surcharges, government spending, increased cost of goods) will just fuel inflation, then surprise surprise, the (clueless) RBA will then re-step in to raise rates again.

All part of the grand plan to crash house/commercial property prices as much as possible before they get valued around 30 June 27 and then prices will rise again and big CGT for the Government when properties are sold.

 

[serfty]

The RBA, which operates independently of the government, removed a rule that prevented the card networks imposing a surcharge ban. Australia & NZ were global outliers in having this rule.

There was no legislation introduced or changed, and no vote in parliament. Surcharges have not been made illegal by the government.

Didn’t the government refer the matter to the RBA with the recommendation it make these changes?

According to Square, the RBA review was initiated after growing corporate and business pressure, most notably from the NAB CEO who publicly condemned surcharging as "outdated and outrageous".

There was no formal government referral or recommendation to the RBA to do this.

All part of the grand plan to crash house/commercial property prices as much as possible before they get valued around 30 June 27 and then prices will rise again and big CGT for the Government when properties are sold.

Such discussion should be continued here:

Thread 'Card Payment Surcharges Banned in Australia from 2026'

Oct 14, 2024

There's an interesting article in the AFR today about some crazy credit card surcharging practices.

Live Payments, which leases payment terminals to small businesses, is incentivizing those businesses to cop a very high 2.6% processing fee in exchange for earning 1 Qantas Point per $1 processed. That fee can be passed on in full to customers under current regulations, which means the business can earn Qantas Points for free, essentially - and some are doing just that...

• Doctore1003
• Replies: 1,596
• Forum: Other Finance Discussion

• 

 

[prozac]

Well that’s a relief that we don’t have to prepay tax in the 2 month window. Now just a ‘up to 12 month’ window which probably means to 30 June as a convenient date or the quarter end past the next election!

You didn't need to pre-pay, just use a 3rd party platform like Sniip, Payment Logic, PayRewards, etc. There are threads offering referrals for these.

In response to questions about non-premium Amex that gives ATO points: Platinum Edge gives 1:1 with ATO.

 

[33kft]

Whether it is worth it is another question, but there would be a manufactured spend opportunity for anyone who overpaid their tax right before June 30 (and get it back a few weeks/months later). I imagine that's one of the concerns that plays into the card provider reluctance to pay points on ATO spend, not just the low negotiated fees, and it could still be a rod for the back of CC providers who opt to have large spend targets for their cards (noting that the delays wouldn't make it quite as clean as I am suggesting).

Oh well, as the ground constantly shifts underneath us, as does it for the card providers also I guess.

 

[jbman]

that manufactured spend trick went years ago when some joker told people on tik tok to do it. People went along with it, overpaid their taxes asked for a refund ATO said no

 

[HMcM]

that manufactured spend trick went years ago when some joker told people on tik tok to do it. People went along with it, overpaid their taxes asked for a refund ATO said no

One that does work is the final year of paying off your HECS. If your mandatory repayments will wipe it out there's nothing stopping you from paying it off with a CC (or multiple) and getting the sign on bonuses. Any withholdings that would have gone towards it will be paid out as a refund.

 

[drron]

The Tax Office has said Taxpayers will have to absorb 200 million as a result of the surcharge removal.
At the high side of the new fees it is 0.16% which means the ATO is collecting 120 billion in CC payments. No wonder business is complaining.

 

[transpactraveller]

The Tax Office has said Taxpayers will have to absorb 200 million as a result of the surcharge removal.
At the high side of the new fees it is 0.16% which means the ATO is collecting 120 billion in CC payments. No wonder business is complaining.

They also said only 2.3% of tax was paid using credit cards for the 2024–25 financial year, so that would suggest they collected 5.2 trillion in tax, which obviously about 10 times too much!

So it's likely 2.3% of transactions, or 2.3% of taxpayers, which then suggests it's a tiny minority of people with large tax bills (and hence large incomes) that are using credit cards. So the government has just made the majority of the population absorb these costs so that a few rich elites can continue gaming the system for points.

 

[jbman]

Is the solution that RBA changes the ruling so Govt departments can surcharge so tax/rate payers do not have to incur the cost of payments?

Then all local, state and federal govt can keep CC as a payment option and only the payee is paying the fee to cover the use of the CC.

 

[drron]

Is the solution that RBA changes the ruling so Govt departments can surcharge so tax/rate payers do not have to incur the cost of payments?

Then all local, state and federal govt can keep CC as a payment option and only the payee is paying the fee to cover the use of the CC.

Though the top 5% of taxpayers pay 180,000 t0 203,000 per year so they pay no where near as much surcharge as the ATO is saying we all need to absorb.

 

[HMcM]

They also said only 2.3% of tax was paid using credit cards for the 2024–25 financial year, so that would suggest they collected 5.2 trillion in tax, which obviously about 10 times too much!

So it's likely 2.3% of transactions, or 2.3% of taxpayers, which then suggests it's a tiny minority of people with large tax bills (and hence large incomes) that are using credit cards. So the government has just made the majority of the population absorb these costs so that a few rich elites can continue gaming the system for points.

It would be really interesting to see where that 2.3% numbers comes from as they've not released the other 97.7% and what is is composed of. For personal income tax about 70% get a refund (so 100% of their tax is paid in withholdings), is that a sizeable chunk of the other payments? We don't know with what's been released.

Is the solution that RBA changes the ruling so Govt departments can surcharge so tax/rate payers do not have to incur the cost of payments?

Then all local, state and federal govt can keep CC as a payment option and only the payee is paying the fee to cover the use of the CC.

The problem is that what's good for the goose is good for the gander. Hard to argue "all businesses should swallow this but not us"