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2 new Amex offers:
Harris Farm Spend $50 or more, get $25 back valid until 3/7/16 (NSW) Expired
kikki.K Spend $10 or more, get $5 back valid until 15/7/16
Manual links: Harris Farm, kikki.K
AmEx Offers: Harris Farm (NSW) Spend $50 Get $25 Back, kikki.K Spend $10 Get $5 Back
1910
lyl on 21/06/2016 - 02:14 network.americanexpress.com (1934 clicks)
Last edited 04/07/2016 - 01:10 by 2 other users
Last edited 04/07/2016 - 01:10 by 2 other users
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That's why i have to create a spreadsheet to track my redemptions of offers for multiple cards. :)
I like that. And its all tax free benefits too. Sweet!
Technically, it's not tax free … you should be reporting it as income on your tax return.
@sp00ker: You many need to consult an accountant for this but last time I checked bank/CC rebates are considered gifts or vendor discounts and therefore tax free.
Why it's tax free?
The problem is these are 'cash', as opposed to gift cards or goods that you normally get with most cards. The other problem is the amount of these rebates could easily add up to a few grand (especially for those with multiple/supplementary cards) - a typical consumer would only get a few hundred dollars a year max.
Further, on the HCF deal - people are getting $100 back, after spending $3, so it's not really a discount/rebate - its just plain income.
It's hard to say whether the ATO has the technology to track these rebates (or any other credit card rebates), but anyone thinking that this is 'easy tax free money', should think twice.
It's a statement credit, not cash
What's the difference? You can close down your account and ask Amex to send you a cheque for the balance.
Not taxable by ATO.
Don't be so sure about that. Take a look at this:
http://law.ato.gov.au/atolaw/view.htm?docid=PSR/GA20044/NAT/…
Excessive Frequent Flyer points earnt on a business card are subject to FBT … not hard to imagine the ATO taking a similar view on large statement credits/points/gifts.
Even if they haven't published a product ruling on it yet, it's probably only a matter of time.
From Taxation Determination TD 1999/34, a reward received under a consumer loyalty program that results from private expenditure is not assessable. For most people expenses are not business related and of a private nature. I am not sure on what basis you insist that the cashbacks are assessable.
From Taxation Determination TD 1999/34, a reward received under a consumer loyalty program that results from private expenditure is not assessable
loyalty programs are the points based rewards. I'm sure everyone is getting points in addition to the statement credits. The statement credits/cashbacks are very different to what that determination is about.
I am not sure on what basis you insist that the cashbacks are assessable.
It's probably 'ordinary income' for the people that have multiple cards, that are doing this semi-professionally.
Take a look at the thread about the HCF statement credit - people are spending $3 and getting $100 back. $97 profit. There's some guy with 14 different Amex cards - $1358 profit. I'm sure the same person is racking up tens of thousands of dollars in rebates this way.
Last month, when they had a $50 credit for $350 spend at Harvery Norman, there was plenty of people buying gift cards and flipping them on gumtree/ebay for a 5% discount - making a net profit of ~$30.
Similarly, several banks that offer account opening bonuses treat the bonus as 'interest'.
Sure, it's probably not asses-able income for the ordinary consumer who's just getting a single credit.
The main problem with credit cards, is that you don't need to supply a TFN when you get a credit card, so it's difficult for the ATO to monitor the activity, but I think it's only a matter time before they try to crack down the people treating it as tax-free income.
Ordinary income means that there are sufficient nexus between the outgoing and the income earning activities.
For most people, there are no profit making purpose and even so it is arguable that they are not in business but there is a hobby.
Often it will be the case that there is a hobby when:
• it is evident that the taxpayer does not intend to make a profit from the activity
• losses are incurred because the activity is motivated by personal pleasure and not to make a profit and there is no plan in place to show how a profit can be made
• the transaction is isolated and there is no repetition or regularity of sales
• any activity is not carried on in the same manner as a normal, ordinary business activity
• there is no system to allow a profit to be produced in the conduct of the activity
• the activity is carried out on a small scale, as represented by its income earning capacity
• there is an intention by the taxpayer to carry on a hobby, a recreation or a sport rather than a business, and
• any produce is sold to friends and relatives and not to the public at large.There may be exceptional cases where the ATO may argue that a person is in business, however, I believe cashback is not income for most people.
Interest is a statutory income which is dealt differently.
@sp00ker: From the accounting perspective I actually don't see much difference between cash reward programs / credit card rebates / loyalty rewards and the good old garden variety X% off discounts. Most of these Amex deals requires you to spend a certain amount and get part of the money back, say you spend $50 in Harris Farm then get $25 credit, it's just like an up to 50% off on the entire bill (funded by Amex rather than the vendor, but ultimately still by the vendor, so even from a GST perspective they'll also balance out). That said, the rebate should only be taxable if the purchase cost itself is part of a deduction, say if you resell and claim the profit then you must deduct the rebates from the cost.
The HCF deal is actually a loophole being abused and is out of the norm. The intention of the deal is clearly to attract new customers - so you buy a hospital cover, stay for 3 months (thus pay 3 bills) and get a $100 rebate, pretty standard offer from insurers / utility providers these days. Giving away $100 for spending $3 simply makes no sense. And I agree if one is being audited by the ATO and if they do look at the credit card statements (only if they do) it may be difficult to defend such earnings as non-income (especially if they he's been paying insurance bills for other people to make a profit - then that's clearly income).
Of course at the end of the day it's up to ATO to rule whether the non-business related cash rebates are taxable or not, although I doubt they'll concern themselves much with such tiny earnings as I don't think a lot of people here have that many cards to put themselves on the radar. Meanwhile this post suggests that oz-bargainers aren't even declaring the ING Direct PayWave rebates, seemly with a legitimate reason.
I doubt they'll concern themselves much with such tiny earnings
I can't see the ATO systematically auditing everyone with an Amex … but I can see Amex reporting the guy with 14 cards to the ATO and being made an example of :)
I didn't get the kikki.k one in my offers when I logged into my account but I did get one for Cellarmastera Online (can't find a direct link; sorry) - spend $120 or more and get $50 back.
Cheers for the heads up. Also got cellar masters in my account
Yes you can buy harris farms vouchers.
I did it last year when they had 100 for 50 refund.
But harris farm is a bit of a rip off
The one in broadway (sydney) seems to be competitive with coles/aldi for fruit/veges at least … but yes, lots of their gourmet foods are a rip off.
Are they a rip off or is the imported rubbish from Coles/Woolworths too cheap?
even the local meats/dairy at harris farm is expensive … organic/free range/blah blah.
Chicken Tenderloins $8.99 Kg, cheapest you could get..
http://www.harrisfarm.com.au/collections/boronia-park-specia…
@CheapyAus:
I bought chicken tenderloins from my local Woolworths for $6/kg on the weekend (not reduced to clear, just an in store special)
This offer can be used in store for multiple transactions.
Yes - very nice. Last time it was all in one go I believe.
Last year was also one or more transactions, under full offer terms
https://offerenroll.americanexpress.com/enroll/enrollmentcam…
That one was online only. The one I was thinking of was in store which was Spend $60 in one transaction get $10 - https://www.ozbargain.com.au/node/187860
Online redemption only for the Harris Farm egift cards sold online. You cannot use them in store. I finally redeemed mine last week from previous Amex deal as was about to expire. Very limited locations to click & collect orders.
Many comments on HF egift cards on last years deal:
https://www.ozbargain.com.au/node/201784
Should be able to buy plastic HF gift cards in store with this new deal though :)
The following transactions are not eligible and will not count towards your spend for the purposes of
the offer:
* transactions where you do not spend directly with the merchant (for example, if you buy the
merchant’s goods through a third party department store);
* transactions processed through a third party payment processor (for example, PayPal);
* transactions that are subsequently cancelled or refunded;
* transactions where you buy a gift card, store credit or a voucheramex cant know what you spend.
it is a red herring
I bought $100 HF egift card in the previous deal & received the $50 rebate.
I went Harris Farm Cammeray and asked if they have a gift card. They didn't have it but they told me they will order it. They also tole me if I come back again tomorrow, maybe available. Has anyone bought a gift card from a shop?
Yes - bought 2 x $50 gift cards at my local HF store in Sydney using 2 AMEX cards. Not a problem however it took some time as it looks like I was the first person to ever buy gift cards in store :)
Do you mind telling which store?
After reading the comment from bauser99, i bought 4x$50 cards at broadway. They know the AMEX deal and it's advertised in the shop. The only problem was it took a while to activate all the cards and queue behind me got long.
Wish there was a quick way to save these offers to all of my cards, rather than going back into the menu and switching card every time.
get the Amex AU app. easily save your offers there, i just saved the Harris Farm & kikki.k offers :)
That will only work for AMEX AMEX cards, not bank issued.
I have a Amex issues card & app downloaded but still have issues where I don't see these offers, such as HF or Kikki. It took 3+ days for me to receive the Event Cinema offer on the app. Very slow. Their email support is Rubbish
I have a Cellarmasters offer,spend $120 and get $50 back.
Qld excluded :(
Only 2 weeks for Harris Farm offer - June 21 to July 3 2016. Shortest ever Amex deal?
Shopsmall in May was only 2 days
Yeah, and 3 of the 4 Shopsmall businesses I went to said they didn't take Amex. I saved $10. Total waste of time.
Still waiting for someone to post the previous Hilton Amex offer manual link…
I don't quite understand the Kiki k offer. Is the offer limited to ONE redemptiom only, or can it be redeemed multiple times, and get $5 every time you spend $10 or more?
The terms and conditions doesn't spell out a limit to the number of times.
Save the offer to your eligible Card and spend $10 or more on that Card, in one or more transactions, in-store at kikki.K or online at kikki-K.com by 15/7/16 to receive a $5 credit. Limited to the first 15,000 Cards to save the offer.
Offer is limited to one credit per registered Card. Only spend on the Card number you register counts towards the Offer.
Excludes transactions where you do not spend directly at kikki.K. For example purchases made through a third party such as a department store, ie David Jones, or through a third party payment processor like PayPal.
Offer valid at Australian locations and website only.
Credit is not redeemable for cash or other payment form.
Credit should appear on your billing statement within 5 business days from qualifying spend but may take up to 90 days from offer end date.
Credit will not be applied to your Card Account if it has been suspended or cancelled.
Credit may be reversed if your qualifying purchase is refunded or cancelled.It's basically get $5 back when you spend $10 in their store, ONCE ONLY
That's the thing- the terms states:
'In one OR MORE transactions'.
Can anyone explain that.
Oh wait- Correct that- it says one credit per card.
I find these two statements conflicting.
if you spent $3.90 on a pen on one day, and the next day you spend $7.80 for two pens, you get $5 back.
Should say that Harris Farm is NSW only - just wasted a few minutes browsing through their specials thinking that they deliver nationwide. Great deal though.
Agree.It is better to mention it in title to avoid some registrations wasted.
Plus
Offer excludes purchases from Bathurst, Edgecliff, Moruya and Sydney Market Wholesale NSW locations.
'Online Gift Card' which can only be used online. Plastic gift cards are sold in store.
$150 HF Plastic gift cards on eBay
http://www.ebay.com.au/itm/3x-Harris-Farm-50-Gift-Card-Total…
Good to know they last a year.
Amex are really pushing the statement credits this year. Very rewarding