Paying ATO Tax with Credit Card

darkmattersunB6c0MV on 17/05/2025 - 10:32
Last edited 17/05/2025 - 10:42 by 1 other user

Hi all, need to pay ATO tax for swapping cypto from one to another (it constitutes a sales event even if you did not withdraw money). Long story short, I have to pay a big tax bill (six figures).

Is there a way of getting credit card benefit on the repayment if I have the AMEX Explorer Credit Card? Tax amount is more than 10x my payment limit. ATO site says there is a surcharge of 1.45%. For ease of calculation, let's assume I have to pay $100k. So, I will pay a surcharge of $1450, correct? Also, can I prepay the credit card (say, load $100k into the card) to then pay the ATO? Will that still get the points?

Point hacks suggests registering at Pay.com.au and then paying the ATO. It that the best option? Are there any other options?

Thanks!

Related Stores

Australian Taxation Office

• 

  Baysew on 17/05/2025 - 10:44

  +5

  Previous Thread - OzBargain Way to Paying the ATO

  • 

    darkmattersunB6c0MV on 17/05/2025 - 11:16

    Thank you!

• 

  30year old Camry on 17/05/2025 - 11:06

  +8

  I thought OzBargainers use iTunes Gift Cards to pay the ATO

• 

  simplystu on 17/05/2025 - 11:17

  +5

  seeing a financial advisor would be best way forward.
  guessing that the rest of your finances are in just a bad state.

  esp if you seem to have $100,000 (that you can simply "pre-load onto a CC").

  • 

    freefall101 on 17/05/2025 - 14:26

    If they have $100k sitting around, and $100k tax suggests a ~$400k capital gain, they're not doing too shabby on the finances front.

    I imagine they could also just sell $100k of crypto to pay the tax bill, which seems reasonable enough.

    • 

      simplystu on 17/05/2025 - 14:37

      Another option === paying tax in installments.

      Which (using ATO calc) … Could cost OP $500 in fees.

      OP was originally intending to PAY $1450 in CC fees UPFRONT (to be able to then collect points).

      [EDIT] … Installment +++ rest of $$$ into a high offset a/c

    • 

      jjjaar on 17/05/2025 - 15:57

      +1

      they're not doing too shabby on the finances front.

      Having money ≠ being good with money

    • 

      darkmattersunB6c0MV on 17/05/2025 - 21:19

      Thanks, but I don't want to touch the crypto at the moment- it will trigger more Capital Gains. I will just pay it from my bank account.

  • 

    CaptainJack on 17/05/2025 - 15:07

    +2

    Wish my finances were in such a bad state

• 

  Fredfloresjr on 17/05/2025 - 11:39

  +3

  Rookie error with crypto brother. But goodluck

  • 

    Guybrush57 on 17/05/2025 - 16:46

    What was the correct action to take? Keep the old crypto as it was or is there a better method of switching currencies?

• 

  djones145 on 17/05/2025 - 12:21

  +1

  if u have a 6 figure tax bill, time to get a tax consultant, and set up a offshore shell company in bermuda for tax benefits

• 

  RonT on 17/05/2025 - 16:21

  Also, can I prepay the credit card (say, load $100k into the card) to then pay the ATO? Will that still get the points?

  This is easy to answer. Yes you can. And yes you will still get the points.

  Is there a way of getting credit card benefit on the repayment if I have the AMEX Explorer Credit Card? Tax amount is more than 10x my payment limit. ATO site says there is a surcharge of 1.45%. For ease of calculation, let's assume I have to pay $100k. So, I will pay a surcharge of $1450, correct?

  If you pay with AMEX the benefit is that you will get the points (although it might be less points per dollar than usual), and there will be a surcharge (1450 in your example). And this 1450 is tax deductible next year. The alternative is to pay through your bank account/debit card, in which case there will be no fees, but also no points. In my view, pay.com.au would only really make sense if your credit card doesnt give points for ATO payments (or less points in case of AMEX) AND you are desperate for points.

  Hope it makes sense.

  • 

    darkmattersunB6c0MV on 17/05/2025 - 21:27

    I may be wrong but think that the 1450 times X the amount I pay (it is north of 100k) will not be tax deductable as it is not business tax?
    It is personal capital gains, so the charges are not tax deductible as I understand.
    The points directly with AMEX are 1 per $ if paid directly to Govt Service, or unlimited 2 per $ if paid to non govt services, say pay.com.au
    I will probably ask my accountant, but he might not assist in such cases.
    I have just paid directly previously using BPay, but this is a bigger amount so thought about exploring options. Thanks.

• 

  Hector on 18/05/2025 - 12:29

  use a service like pay.com.au or sniip (I use sniip as it's got the lowest fess)

  you pay a bit more than ATO, but you get more points than paying the ATO directly

• 

  darkmattersunB6c0MV on 18/05/2025 - 16:59

  I have talked to my accountant, who recommends paying by BPAY. So, I will pay directly. Thanks.

  • 

    tenpercent on 18/05/2025 - 17:04

    Did they give a reason?

    • 

      darkmattersunB6c0MV on 19/05/2025 - 05:58

      I didn't ask a detailed reason, but advice was something along the lines that it is up to me, but it is too much hassle for not much gain, and I agree.
      Also, given the amount, I might have to make multiple transactions and might run into issues with the payment company/ credit card.

• 

  ssmith3104 on 18/05/2025 - 17:41

  Unlike most credit cards that don't pay rewards/points for payments to governments / ATO, the NAB Business Qantas Visa card pays full points for these transactions. Worth getting. Yes, you will incur the ATO's credit card merchant fee.

  • 

    darkmattersunB6c0MV on 19/05/2025 - 05:59

    Thanks but too late to apply for another credit card now.
    I have already initiated the payments over the next few days.
    Thanks

• 

  darkmattersunB6c0MV on 19/05/2025 - 05:54

  -1

  To the moderator team, can you please close the thread.
  Thanks.