Churning - meeting the minimum spending requirements

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Mattao

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Jan 26, 2020
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I learnt about the the wonderful world churning about a year ago from reading about the experiences of others on this site. I saw it as a great opportunity (pre covid) for my family and retired parents to travel. During the last 12 months, I have organised and cancelled about 20 cards for my various family members and my business.

Besides keeping track of all the cards, the biggest challenge has been meeting the minimum spending level to receive the bonus points (usually about $6,000). Given the number of cards I am "churning" through, it was impossible for meet the requirement. After doing a little research, I came up with a strategy. It is not strategy that will suit everyone (eg. you need an ABN) but it may be useful for a couple of you.

I came across the B2Bpay service. I am sure there are other similar service providers. This service allows you to pay business income tax using a credit card. B2Bpay advertise the fact that you can pay income tax using a credit credit through their service as one of their benefits. Note that it doesn't have to be a business credit card.

The steps that I took every time I got a new card was:

Day 1

Use the card to pay income tax for my business

Day 2

Repay the card plus annual fee.

Day 40 (Approx - depending on the bank)

Cancel the card


There is a cost for the B2Bpay service. However, given that I use my Qantas point to fly business class, this cost is negligble (usually about $80). The obvious question is "what if I don't need to pay any income tax?". Well you can wait till the end of the year for the amount to be refunded. Or you can do what I do, contact the ATO and asked for the excess amount to be refunded.
 
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