worth getting the points?

[aussieboy2010]

Hi Guys,

quick question if i may. i have a tax bill of around $100,000 that I'm due to pay.

I was keen on paying it with my Amex Plat Charge Card in order to get the points.

The fee for doing this is 1.45%. So by paying the bill via the card, i'll have to pay $1450 in order to get the 100,000 points.

I am struggling to work out if this is worth it or not.

Anyone have any advice on the matter?

 

[Abdul_A350]

Unfortunately you would be paying that amount for half the points. Amex's perspective on this is quite humorous ("Typically you can pay more").

American Express Australia - Membership Rewards Program - FAQ

4. Why have you reduced the earn rate at the Australian Tax Office?In order for our products to remain competitive and continue to provide premium value, the Membership Rewards program is undergoing some changes in certain industries. The Australian Tax Office is one of these. The industries where we have changed the points earn rate to 0.5 per dollar spent, are places where our Cardmembers have traditionally used their Cards less frequently compared to other industries.

Typically you can pay more at the ATO with your American Express Card and continue to earn points.

Where Membership Rewards continues to drive value is with the huge range of redemption choices, including the largest range of travel rewards in the market and a great selection of non - travel rewards.

 

[aussieboy2010]

I see. Thank you.

That is disappointing.

 

[RooFlyer]

I assume that you earn ATO points with that card? See here for more general info on ATO/cc s

That's 1.45 cents/point, sounds a bit high to me, but as everything is relative, a pertinent thing to consider is do you have any need for the points? This helps you 'value' the points in your hands.

For instance, if you are 'saving up' for a particular Award flight, then if you dummy book, you'll see the # points required and any cash charges added on and then add on the $1,450; compare it to a cash booking to see if you are materially in front by effectively buying the points (and you might want to factor in the likelihood of you getting the Award seat when you want it).

Edit: Not good value at half the earn!

 

[Dr Ralph]

Nope not worth it. You can get the same amount of points for a lot less.

 

[aussieboy2010]

Thanks guys

 

[burmans]

Not worth it on that particular card but do you have others?

 

[aussieboy2010]

Unfortunately not.

 

[BAM1748]

Do a couple of bookings and see if it works for you, it might.

Wish I was paid enough to have a $100K tax bill. :mrgreen: (ok yes I'm guessing it's business)

Matt