ATO (tax office) payments by credit card

[Beefcake]

I can see that CBA Business Awards still allow for points on ATO spend. They also have an american express option. Any reason why most business owners don't use this type of card?

 

[vicsta]

I'd have very little chance with Qudos given the large number of cards I have.

Waiting with interest to hear reports about Bank of Australia. In the meantime I'll stick to BankWest World at 0.66 from June.

I've noticed the Bank Australia CC first mentioned on the forums in October last year. Any reports from people using it? Anyone????

 

[Scr77]

I can see that CBA Business Awards still allow for points on ATO spend. They also have an american express option. Any reason why most business owners don't use this type of card?

Business financials may need to be provided and the earn rate is not as high. It may be where we end up though.

 

[infinity]

Anyone using Bank Australia?

Are ATO payments ok?

What was the application process like?

 

[Hawkeye]

I can see that CBA Business Awards still allow for points on ATO spend. They also have an american express option. Any reason why most business owners don't use this type of card?

... they also have a very low annual points cap. Many will hit that cap with a single BAS payment.

 

[ComeFlyWithMe]

Does anyone know if the HSBC uncapped Premier card still pays on ATO? Apologies if covered upthread, I know their standard cards do not.

Edit: answered my own question by trawling the terms and conditions. Does not pay on ATO.

 

[JohnK]

Thanks for posting about Amex Velocity Red Radio8tiv. One point for 1.45% is quite a bit better than other direct Amex cards that pay half that rate.

I am only in the small leagues but have to pay about $10,000/year PAYG tax. I don't have the cash so use Amex vanilla Platinum to pay it so the cost to me is $145 and the return is 5,000 Amex MR points.

I then claim the $145 as a business expense so the question is do you value 5,000 MR points at ~$73? Almost break even for me. I am sure others can get much better value.

 

[junbugging]

Just to reference the advice my partner was given by his accountant:

https://www.ato.gov.au/Business/Inc...it-card-payment-fee-deductibility-guidelines/

[h=2]When you cannot claim a deduction[/h]A credit card payment fee or charge card payment fee will not be deductible if:

• the fee is incurred by you as a result of paying your personal income tax liability using that credit card or charge card and you are a salary and wage earner or an individual partner in a partnership

 

[Radio8tiv]

I am only in the small leagues but have to pay about $10,000/year PAYG tax. I don't have the cash so use Amex vanilla Platinum to pay it so the cost to me is $145 and the return is 5,000 Amex MR points.

I then claim the $145 as a business expense so the question is do you value 5,000 MR points at ~$73? Almost break even for me. I am sure others can get much better value.

I'm the same as you with only a very small bill per annum, I only use a visa to reduce the costs I used to use the BankWest, but with the reduced earn rate will go back to the Westpac business rewards visa.

Just to reference the advice my partner was given by his accountant:

https://www.ato.gov.au/Business/Inc...it-card-payment-fee-deductibility-guidelines/

When you cannot claim a deduction

A credit card payment fee or charge card payment fee will not be deductible if:

• the fee is incurred by you as a result of paying your personal income tax liability using that credit card or charge card and you are a salary and wage earner or an individual partner in a partnership

so from reading this is it ok as a small sole trader to claim the credit card fee?

 

[cove]

The problem in Australia is that successive Governments have increased the number of Australians who receive some sort of benefit to about 50% of the population. What that has meant is we have too many taxpayers paying maximum tax rates of 49% income tax,plus 10% gst plus up to 30% on superannuation. To change this at a time when many post war baby boomers want to retire makes it doubly difficult as many view retiring as let's pay off all of our debts,buy a camper and 4wd and use the accumulated super money so that they qualify for a Government pension for the next 30 or so years.
The most likely change needed is to move the GST rate from 10% to 11% and send it all back to the States that generate it. That way education and health can be afforded.
Death duties would ensure the people re-introducing it get kicked out of office quite swiftly.
The black economy remains a huge hole in our tax system where we have homeowners paying 10% less for tradesmen's work around the home by paying cash as well as too many working on distributing illicit drugs to our community and dodging everything.Picking up a chunk of this would be quite helpful.

Back on topic BW,Qudos, WBC and Citi US were helpful last month for us in running up miles and points galore.

 

[Danger UXB]

I'm the same as you with only a very small bill per annum, I only use a visa to reduce the costs I used to use the BankWest, but with the reduced earn rate will go back to the Westpac business rewards visa.




so from reading this is it ok as a small sole trader to claim the credit card fee?

I was under the impression Westpac business rewards visa didn't earn for fiscal contributions but I will be happily corrected

 

[JohnK]

I'm the same as you with only a very small bill per annum, I only use a visa to reduce the costs I used to use the BankWest, but with the reduced earn rate will go back to the Westpac business rewards visa.

so from reading this is it ok as a small sole trader to claim the credit card fee?

I have an ABN and that's where the ATO sends the tax bills. My accountant is claiming the costs.

 

[Radio8tiv]

I was under the impression Westpac business rewards visa didn't earn for fiscal contributions but I will be happily corrected

I tested the card a while ago but have since paid with Bankwest, I will use the Westpac again next time and report back, but I have not read on here yet that it doesn't award points for ATO, it also pays to aquire which transfer to qff 1:1 but you need a minimum of 3000 to do so, and the earn rate is only 0.67ppd

I just checked the T&Cs and it has the usual will not pay for government charges but does not list ATO specifically.

 

[Danger UXB]

I tested the card a while ago but have since paid with Bankwest, I will use the Westpac again next time and report back, but I have not read on here yet that it doesn't award points for ATO, it also pays to aquire which transfer to qff 1:1 but you need a minimum of 3000 to do so, and the earn rate is only 0.67ppd

I just checked the T&Cs and it has the usual will not pay for government charges but does not list ATO specifically.

From here

http://www.westpac.com.au/docs/pdf/bb/Altitude_Business_Rewards_T-C.pdf

page 4

0.5 points per $1.00 spent on government payments using your Altitude Business Platinum Visa or Altitude Business Platinum American Express Card.

page 7

3.3 When will you not earn points?
While points are earned when you purchase goods and services, please note that points are not earned in respect of the following amounts that may be charged to your card account:
• government charges (other than GST payable in connection with the purchase of goods or services on which you earn points


and then page 19 and 20

government payments means any transaction treated by us as a government payment to any Australian federal, state or local government agency, service or department or any Australian court or tribunal, including where you or the additional cardholder use the card or card account to:
20
• make payments to the Australian Taxation Office;
• pay vehicle licensing and registration;
• pay fines issued by any government, agency, service or department;
• pay bail and bond payments;
• pay council rates or fees; and
• pay court costs including alimony and child support

Having read all of that I've just checked my recent VicRoads rego payment and it got half points( I have a business plat card) so I'm guessing it's the same for ATO

 

[unfunkable]

how about loading up velocity global wallet and using that to pay tax?
do you earn points on that?

 

[DaveB]

Westpac Altitude appears to be a lot different to the QF Aquire card in one important matter.

 

[cove]

I am still hurting from paying the quarterly tax bill for our SMSF by EFT as we are each maxed out on the three year $540,000 limit. I did think should I use my son's credit card but his are close to being dead for ATO until he gets a new CC. The super rules are in no mans land due to an election having been called.

 

[serfty]

Made my last ATO Woollies Payment early in the week. It still has use, but not as much as once was.

 

[cove]

Yes our family ran with 3 Woolies CCs and they won't have a purpose going forward. Mrscove never bothered to get one so that is one less to abandon.

 

[serfty]

Yes our family ran with 3 Woolies CCs and they won't have a purpose going forward. Mrscove never bothered to get one so that is one less to abandon.

Not in my case, I can still use the 2.5K per month for other purposes as I redirect spending - still looking to maximise opportunity.