Tax time is approaching again.
Any good credit card that earns something back for you on tax payments?
I have Coles MasterCard but it no longer earns flybuy points for ato payment after Citibank took over.
Is there a better way to get something back from the transaction to ato?
I know amex still gives you some points but the surcharge makes it unattractive. Especially if you have to fork out substantial amount of tax payment.
Ouch mate I feel the pain. Same boat for me this year but it's my property that I sold which I need to pay CGT.
the points you earn on the transaction don't outweigh the surcharge incurred from using a credit card
I think so unless it's a debit visa or MasterCard that earns you points when making payments to ATO. They don't have a very high surcharge, it's around 0.15% I think for debit cards.
I just used the AMEX Qantas Business Rewards Card via b2bpay.
What is the fee use b2bpay?
Visa / Mastercard standard cards: 1.2% (after company tax deduction: 0.84%)
Visa / Mastercard premium and corporate cards: 1.55% (after tax deduction: 1.09%)
American Express cards: 2.2% (after tax deduction: 1.54%)
Diners Club cards: 2.4% (after tax deduction: 1.68%)
Surely these fees invalidate any benefit/bonus you earn?
@DingoBilly: Only really useful for manufacturing spending to hit sign up bonus spends.
…wonder if I can claim the fees on next years return for managing tax affairs.
@randomusername2017: If you use it to pay for business related tax liabilities, then ato has said yes. If it’s for personal tax liability, it’s a no
https://www.ato.gov.au/Business/Income-and-deductions-for-bu…
there's a similar thread in AFF forums. Apparently depends on your preference, Amex or St George group is the best.
Last time i checked i thought pretty much all credit cards had stopped giving bonus points for ATO payments?
"pretty much all" being the operative words.
So it seems there's only 2 non-business credit cards that will permit this.
https://www.pointhacks.com.au/ato-points-earning-cards/
i'd say more than that. The table in that article only shows 1 biz card. And I don't think it's up to date.
Not directly.
Buy lots of prepaid debit cards on sale, Vanilla Visa, Coles MasterCard, etc. Never miss a chance to buy more if you can. Pay $99.85 each time as 15 cents for card fee.
They are supermarket purchases in banks' view.
BTW, Vanilla Visa has been unusually on sale for 4 times in Coles this year. If you had 3 flybuys, you've already got $1200 value worth to offload.
Why would you bother with this exactly?
OP is looking for 2%- return or even 1%-. My method saves 9-10%.
The bother would be paying a 20k ato bill with 200 gift cards
$100 one on sale with flybuys $10 and 5% off eGC payment offsets activation fee.
Even without any sale, there is $250 option with $7.5/$7.95 activation fee. You can still earn a bit with 5% off eGC, free CC pts if possible.
Assume those particular cards were mentioned due to not having fees.
$2000 saving is great.. but offset that with time involved purchasing x 200, redeeeming x 200 ~ especially when on sale with purchase limits. Odds are you will have issues with at least one of the cards out of the 200 also.
Look for a card with a decent sign on bonus and manufacturing 20k spend through that could yield $2000 worth of points in a single transaction. Value add by 0% BT for 16 -24 mths and invest the 20k elsewhere.
I used to use the Visa cards from Woolies, till the ATO stopped accepting them. Are the Coles ones accepted by the ATO?
The stopped one is Only 1 Visa, by issuer not ATO. All the others are eligible.
iTune Gift Card?
When does the financial year end?
It's the end of this month isn't it?
Really?
Really?
It's of no significance to me except for the fact that I gotta do a tax return that I usually do in August or September.
V/M only. Most V/M CC do not give 1.3% back.
Very interesting. Have you had experience using this to pay ATO tax bills?
There are quite a few visa / mastercards that give 1 qantas point per dollar spent, which could make this option very attractive.
Confirmed working with Bankwest World and St George Amplify can't comment on other bank cards.
ATO payment from EBP via BPay - card purchase charged to EBP sydney - points credited.
Compare this to b2bpay which charges 1.2% on visa/ MC. What is the benefit? The fee is 0.1% more but this is negligible.
I am tossing between EBP and b2bpay.
A side note how did you get bankwest world MC? I thought this card is invite only?
@randomusername2017: I followed that link and it took me to the bankwest homepage and not any credit card page.
Haven't seen a bonus point deal at bankwest for some time now on their Qantas world card. Where did you see this deal?
@Poolprouk: Sorry.. must have been a cached page was working when posted, now redirects to the homepage for me.
Signed up late last year.
ANZ Black Frequent Flyer
How many points do you get on this card for $1 spend to ATO?
1 point per $.
Sounds good and how much is the annual fee of this card?
Unfortunately not :(
Can anyone confirm that you get bonus points (for the credit card/minimum spend) if you use B2BPay?
i.e. it won't be invalidated by the bank.
Cheers
EBP will be a non starter from August. Amex @ 1.7% MC/Visa down to 1%. Introducing $24.95 monthly fee.
So EBP will require user to pay monthly fee to use the service.
I guess it's probably only worth it if you sign up and then cancel after payment is made. Also depends on the size of ATO bill.
I cannot register with EBP now. Account sign up closed…
lol.. take that as a sign to go with b2pay
Strange.. no announcements
B2BPay is looking like a better option. Currently has 40k bonus points offer to link your accounting software and send/receive $20k before 31/7 via QBR.. also 1 point per $100(3 Qantas Points for every $1.50 paid to suppliers registered as a B2Bpay Bonus Biller)
Just saw this on the email sent by Citibank -
Dear arctan,
We have introduced a whole new way to pay and earn Citi reward Points1 using your Citi Rewards Card with Citi PayAll.
With Citi PayAll, you can set up your rent, taxes, education fees, property management fees, childcare, miscellaneous bills and more. And the good news is that the number of points you will earn is uncapped.
Set up single or regular Citi PayAll payments by transferring to recipients with a registered BSB and account number held with an Australian financial institution. You will earn 1 Citi reward Points per $1 spent each time you transfer.
You will be charged a 2% PayAll fee of the Citi PayAll amount.
This feature is available now in the Citi Mobile® App.
So looks like this is another option. Not sure if this only applicable to debit visa card. It would be good to be able to pay the tax bills with Citibank Visa. However 2% fee is charged for each transaction. This is not as good as B2Bpay and other alternatives.
Ironical that you don't earn points for government spends directly with their cards, yet they provide an indirect mechanism and charge 2%.
Citi devalued their points years ago.. 2.5 citi points equivalent to 1 Velocity point
Today, I got a promotion from Citi of:
Spend $1500 with Citi PayAll during the month of October and get a $50 eVoucher.
With the 2% fee, $1500 * 2% = $30, which means pay $30 for a $50 gift card.
Yeah I just saw that as well. I would probably do it if the gift card value is more than $50.
I looked into it a couple of years ago (had a $25k tax bill thanks to selling some shares!!) and couldn’t find anything to make it worthwhile. Just ended up going on a payment plan and paid the damn bill off earlier this year