Tax Payments by Card - FF Points

From time to time I see comments by some that ATO payments can be made by CC / debit card and it will boost FF points.

The ATO now do accept card payments subject to a $50k limit per transaction. They do allow multiple transactions if you have the limit. However they do impose surcharges to recover their actual cost. Visa and MC are at least 0.42% and Amex is at least 1.42%. I say at least as any card issuer imposed fee above that percentage (eg currency conversion etc) is also added and also subject to GST.

Has anyone got first hand experience if the Easypay service by the Reserve Bank to make tax payments attracts FF points ??

I see a exempt fringe benefit here - Director pays business taxes on his/her card linked to Qantas FF for example. Oncharges the surcharge so he isnt out of pocket. Question is can she / he get points ?? ie Amex 2pts per $1 of taxes.
 
FC of T v Payne (2001) 202 CLR 93

Full High Court

Don't see much difference from this case on business travel expenses.

Its the way you do it that determines if income tax or FBT applies.
 
Are you sure you receive frequent flyer points when paying government services by credit card?

The last time I had to make a large payment to the ATO I checked with both my Visa and Amex credit card providers and was informed that government and insurance payments were excluded from the scheme.
 
Whether you get FF points from CC payments to the ATO is dependent on the issuer of the card.

In the past, Citibank cardholders were using this to score business class/first class tix around the world. Unfortunately, Citibank caught onto this and hence no longer allows points on goverment charges with ATO payments being one of them.

Nevertheless, there are still some credit card providers who will give you FF points for ATO payments. Just need to do research and read the T&Cs. One such card is the Westpac credit card. There are others, but can't remember off the top of my head.

If you're a business owners and pays BAS etc, you can accrue significant amount of FF points. I know a few friends who just flies business class around the world based on the points they get from paying the BAS!!
 

Its a bad example. I asked about accruing FF points paying tax . Not if any FB arises. Thats a secondary question. No points = there is no FBT issue to even consider.
First step is to determine if point can be accrued. I suspect they cant and would be thrilled to find they can.

The deloitte link concerns employees who spend $$ on airfares for work and accrued FF point for personal use. It doesnt mention using a personal or employer card as a Director to pay Co tax liabilities. There may be a difference.
 
Nevertheless, there are still some credit card providers who will give you FF points for ATO payments. Just need to do research and read the T&Cs. One such card is the Westpac credit card.

Checked Westpac and their recent changes affect in two ways _ Cards are capped for all their low value cards. Only one Premium "black" doesnt have a cap otherwise its $5k or $7.5k per monthy typically.

Second, card rules clearly indicate no pts on "Govt Charges"...It doesnt say tax but I see where its going.... GaryT said. Although I didnt see insurance....Some large companies have some very hefty insurance bills.

A collegaue just suggested PS LA 2004/4 (GA) as a read...Para 7 + 20 seems to put the kabosh on such arrangements and may be assessable income to the recipient anyway. The 250,000 "point" limit...It seems old and may predate the 2 points / 3pts etc some schemes can accrue. It would seem it woudnt be hard to blow that limit paying taxes...or large bills. especially where the only reason why its being paid on a personal card (with a surcharge reimbused by company) is to rack up points.
 
I have been paying by card as well, and read the rules, have not counted the points, but will for the heck of it.

Westpac does say it will limit points that are deemed for business use. The black cards are for personal use only, seems they can't distinguish quarterly payment bas is business or personal ias. The waiver is in their t&c's
 
The ATO now do accept card payments

It's been available for YEARS, via an unpublicised little site that looked so rough it could have passed for a high school project. I didn't pay my last two years of taxes on it so maybe they've improved it, but it used to look so dodgy I was afraid to put my CC into it at first thinking it was a scam. But yeah I've been using it as far back as 2008 I think? And I have no idea how long it had been available for before that (my friend said he'd been using it for years before he introduced it to me)
 
Last edited:
Back
Top