ATO (tax office) payments by credit card

[Pointy Bird]

Cove - I think my calculations are correct.
Top tax rate 45% plus 2% medicare levy. This 47% will be refunded back as a tax deduction which implies we are actually paying 53%.
Have I missed something?

 

[cove]

Cove - I think my calculations are correct.
Top tax rate 45% plus 2% medicare levy. This 47% will be refunded back as a tax deduction which implies we are actually paying 53%.
Have I missed something?

You scare people with the fact that you are only left with 53% of the money you earn. The tax rate is 47% today. The net cost to you of the flights will also depend on whether you do business at your destination as well as the rules on deductibility of the charges on Reward Pay.

 

[Duffa]

0.78 for Visa - that's getting EXPENSIVE !!

 

[Scr77]

View attachment 110891
0.78 for Visa - that's getting EXPENSIVE !!

I though the same. I’m not aware of a working M’card though.

 

[cove]

Net of a tax deduction (if applicable at the highest rate) you would have a cost of half a cent a Mile on a Visa I plan to use for our international flights.
For domestic flights net of a tax deduction (if applicable at the highest rate) using a MasterCard the points would cost about 0.3 cents each.

 

[Pointy Bird]

The choice of card for ATO depends largely on whether the priority is for the cheapest points (? MC) or to earn as many points as possible (Amex). Given that even the most "expensive" points ( Amex via Rewardpay) end up relatively inexpensive if a tax deduction is permissible, my preference is for Amex. As stated earlier, this ends up costing under $2500 for a 1st class flight to Europe return.

 

[coriander]

The choice of card for ATO depends largely on whether the priority is for the cheapest points (? MC) or to earn as many points as possible (Amex).

Turning it round the other way..... let me see if I've got this right?
I have Amex Platinum Rewards card which pays 1:1.
Using RewardPay, $1000 tax bill costs $1026.40, netting 1026 Reward points (converts at 1:1) -> 1026 KMiles (1c per mile)
Using a mythical animal CC, $1000 tax bill costs 1007.80 netting 1510 loudspeaker points (converts at 0.5:1) -> 755 KMiles (0.667c per mile) * EDIT: points earn corrected
I can see that Explorer/Ascent card would get me down to 0.5c per mile (but I already have 2xAmex cards so can't switch). But RewardPay does look the way to go.
*EDIT: "loudspeaker" rewards are 1.5:1

 

[New Chump]

I though the same. I’m not aware of a working M’card though.

CBA Business Platinum Mastercard still works. But: Low annual points cap (300,000 CBA rewards points), average conversion rate (1:0.4 for QFF; 1:05 for Velocity), and $300 annual fee.

It's only just breaking even for me, primarily due to the low ATO processing fee for mastercards.

NC

 

[Pointy Bird]

Turning it round the other way..... let me see if I've got this right?
I have Amex Platinum Rewards card which pays 1:1.
Using RewardPay, $1000 tax bill costs $1026.40, netting 1026 Reward points (converts at 1:1) -> 1026 KMiles (1c per mile)
Using a mythical animal CC, $1000 tax bill costs 1007.80 netting 1007 loudspeaker points (converts at 0.5:1) -> 503 KMiles (2.004c per mile)
I can see that Explorer/Ascent card would get me down to 1c per mile (but I already have 2xAmex cards so can't switch). But RewardPay does look the way to go.

Even though you have 2 Amex cards, why not cancel one and "Explore" the option of a card which is paying 2 points per $ ?

 

[coriander]

Even though you have 2 Amex cards, why not cancel one and "Explore" the option of a card which is paying 2 points per $ ?

One's a Amex QF Ultimate which generates ~30k QFF points per month, the other a (free) Platinum (pre-dates Edge but has same rewards points pay) has about 400k Rewards points warehoused and hasn't been used that much recently (currently we have lots of QFF points that I can't seem to find flights I want to use them on, so am looking towards KMiles as it appears reward flights are a bit easier to find on SQ).. I'm trying to get the Rewards Amex one high enough to cash out for some SQ J class award tickets then will close it. I'm reluctant to move the Reward points until I need them in case circumstances change. I've just called Amex to see if I can switch, they said yes of course you can but you lose all your Rewards points because they don't switch over.

 

[cove]

Yes you need to transfer those Amex points before moving to a different Amex card or they will be lost.
We use QF points for Australian domestic flights in business class when we are going Coast to Coast which we are both doing in the next few days.
Sometimes it is a good result to pay more to get more and everyone’s circumstances can be different. I value Kris Miles at double the value of a QF point based on what I can book.
Have paid everything that was due by November 21st to the ATO so for us this is the start for a new month.

 

[bismarck]

I though the same. I’m not aware of a working M’card though.

Ah for the good old days when it used to rain points.

C'est la vie

 

[get me outta here]

If this refers to applying for a new AMEX card, the T&Cs inhibit getting another card if already holding a direct Amex card of any sort.
The only exception to this is possibly a DJs Amex card, last time I looked at the T&Cs for that.

Even though you have 2 Amex cards, why not cancel one and "Explore" the option of a card which is paying 2 points per $ ?

 

[andye]

If this refers to applying for a new AMEX card, the T&Cs inhibit getting another card if already holding a direct Amex card of any sort.
The only exception to this is possibly a DJs Amex card, last time I looked at the T&Cs for that.

You can get a new card - you just won't get sign-up bonuses anymore (excepting DJs as you say)

 

[get me outta here]

Yes of course, it just never occurred to me that a person would apply for a card with no sign on bonus.

You can get a new card - you just won't get sign-up bonuses anymore (excepting DJs as you say)

 

[cove]

Yes of course, it just never occurred to me that a person would apply for a card with no sign on bonus.

GMOH we all come with different strategies. I don’t think I have done that for quite a while. I didn’t get any when I upgraded a card but I have earned many points more to make up for no sign on.

 

[Mattg]

Can confirm that the CMC is still good for earning FB points...

 

[FromTheRail]

Can confirm that the CMC is still good for earning FB points...

Just going through the process of getting one, might have another one, will know in a few days to see if the points post.

 

[opusman]

I though the same. I’m not aware of a working M’card though.

BankWest still paying 0.66 pts/$ on ATO. Though at 0.40% fee it's getting to the point where it's not worth it.

 

[Scr77]

BankWest still paying 0.66 pts/$ on ATO. Though at 0.40% fee it's getting to the point where it's not worth it.

Thanks opusman.