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Pay Your ATO Tax Bills by Credit Card and Earn Points

 

Get Rewarded

For Paying

Your Tax

 

 

Tax bills are one of the biggest expenses for any business, so why not earn frequent flyer points on these payments?

If done correctly, it is possible to pay your pay your ATO tax bill using your credit card and earn maximum rewards points. 

This article explores the options for paying the ATO via credit card, the fees associated with paying via credit card, and the best way to maximise the rewards points you receive from paying your tax bill (including a great hack for earning extra Qantas Points!). 

Can you pay the ATO by credit card? 

Yes, you can pay the ATO using your credit card – including Visa, MasterCard or Amex. The fees associated with paying the ATO vary based on which card you use, so make sure you use the chart below to identify exactly how much you’ll be charged in credit card fees. 

Does the ATO accept Amex payments? 

Yes, the ATO accepts payments from Amex cards. However, the fee for paying the ATO with an Amex card is 1.45%, which is significantly higher than other domestic credit cards. 

Improve Cash Flow

Paying the ATO by credit card means the money doesn’t leave your bank account straight away. Instead you can hold onto your cash during the interest-free period on your credit card, and it won’t cost you any interest if you pay your credit card bill on time^. It can also help you avoid any late payment fees or interest charges if you don’t have the cash available on the due date.

Improved Credit History

Paying your bills by credit card can be good for your credit history, provided you always pay your credit card bills on time.

Credit card fees may be tax-deductible

You may be able to claim your credit card processing fee as a tax deduction for your business, which helps offset the additional cost of paying ATO bills by credit card. However, any interest you pay for late credit card payments is generally not tax-deductible.


Earn Bonus Rewards Points

You may be able to earn rewards points on your tax payments, which wouldn’t be possible if you pay the ATO straight out of your own pocket.

What should I watch out for when paying the ATO by credit card? 


Reduced or zero rewards points earned 

Traditionally, the big downside of paying ATO and government bills – and other bills such as insurance, rates and utilities – on credit card is that these billers are often categorised by your card issuer to earn reduced or ZERO credit card rewards points. 

In other words, they’ll let you pay these bills using your credit card (and charge you a credit card processing fee), but you won’t get the full benefit of rewards points. 

ATO credit card payment fees 

Another downside of paying by credit card is that you’ll pay a card payment fee that wouldn’t apply if you were paying by direct debit. 

The ATO charges the following card payment fees: 

 Card 

 Fee 

 American Express 

 1.45% 

 MasterCard – International 

 2.70% 

 MasterCard – Domestic Debit 

 0.15% 

 MasterCard – Domestic Credit 

 0.70% 

 Visa – International 

 2.70% 

 Visa – Domestic Debit 

 0.15% 

 Visa – Domestic Credit 

 0.78% 

The trade off with card payment fees is that higher fee cards often earn more reward points per dollar than lower fee cards, so the extra benefit may outweigh the extra cost.

Interest if you don’t pay your card off 

If you don’t pay off your credit card bill by the due date, you could end up paying additional interest to your card issuer on top of your ATO tax bills and card payment fees.

Some credit cards charge as much as 20% p.a. interest on overdue amounts, which could mean a significant penalty if you’ve put a large tax bill on your card. Again, any interest you pay for late credit card payments is generally not tax-deductible.

How do I get the most rewards point when I pay the ATO by credit card? 

While card issuers will give you reduced or zero credit card reward points when you pay the ATO, you can increase the reward points you earn by using a third-party payment service like B2Bpay.

How many points can I earn (and what can I do with them)? 

If you paid $240,000 per year in BAS, payroll taxes and other business expenses using B2Bpay, you could earn:

  • Up to 480,000 Qantas Points (or credit card points) every year*, plus
  • 34,285 Qantas Points for your business every year (or even more by paying B2Bpay Bonus Billers).

 

How much does it cost to use B2Bpay? 

The only fee for using B2Bpay is a card processing fee – which ranges from 1.2% to 2.4% excl. GST (or 0.84% to 1.64% after eligible company tax deduction) depending on your card type.

This fee is outweighed by the value of the credit card and Qantas Points you can earn, plus the cash flow benefits of holding onto your cash longer.

Get started now 

Paying your ATO bills by credit card offers a number of potential benefits for business owners, including credit card reward points. And if you’re disciplined about paying your credit card off each month, these benefits can easily outweigh the additional costs.

Login to your account today and start getting rewarded for making tax payments.

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Start accepting credit cards, with no cost and no fuss.

Have you been thinking about offering your customers the option to pay by credit card but have put it in the too hard basket? With B2Bpay it’s as simple as letting us know you want to get started, and we can set you up as a Biller for free with your own branded payment portal (we can even add your logo!).

Then all you need to do is start putting these details on your invoices (eg. pay.b2bpay.com.au/ yourcompanyname) so your customers can start paying you online via credit card at any time of the day.

Get paid faster, and save time too.

62% of Businesses say paying by card is faster, and by having your own payment portal customers can pay you online (via their computer or mobile) 24/7.
Receiving card payments has been found to reduce payment chasing by 61% and improve cash flow in 73% of businesses.
You can also reduce manual processing (eg. over the phone) in your business, with no cross-checking bank statements or need to store card details.

Customers receive bonus Qantas Points when they pay your invoices. 

Your customers are rewarded with Qantas Points every time they pay you (1 Qantas point for every $100 spent). You can even gain a competitive edge by signing up as a B2Bpay Bonus Biller and offer extra Qantas Points to customers paying your bills.
Your customers can pay using VISA, Mastercard, American Express or Diners Club so get their own credit card reward points on payments too.

It’s super easy to start, and it won’t cost you a thing.

We do it all for you. There is no training, no merchant facilities and no changes to your banking or IT systems. We simply process the credit card payments for you and pay into your nominated bank account.

Want to know more?

Watch our video on how it all works below:

If you would like to have a chat to us about how it all works, give us a call on 1300 205 575.

 

 

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Pay Rent with Credit Card and Get Rewarded

Paying business rent, strata or other property expenses using B2Bpay is an easy way to significantly boost your points balances and cash flow.  

These payments are very popular with B2Bpay customers who like to pay their major recurring expenses (like rent, tax, etc.) using B2Bpay, to maximise their points.  

“We have been using B2BPay now for some time. We find it easy and convenient to use to pay bills, such as Rent and ATO and particularly love the scheduled payment option, never late paying again. On top of that, we get AMEX points as well. Nice!!” 

John Williams, Director, HelloWorld Travel, Rowville, VIC 

By using B2Bpay to pay sizable and recurring business expenses such as rent or strata is a great way to sit back and watch your points balance and cash flow grow….whilst planning your next trip! 

Is it worth paying rent with credit card?

The benefit of paying your rent via credit card varies depending on your personal circumstances. For example if you run a business that requires cash flow then paying your rent by credit card is a smart choice because it frees up more of your cash to be used in other critical areas. Another reason you may choose to use a credit card to pay rent would be because you love to travel and with plenty of frequent flyer award programs tied to credit cards it makes sense to earn some extra points on a recurring basis.

Paying your rent with a credit card may not be the right option for you though, check the fees of your credit card provider to make sure they don’t outweigh the benefits of extra rewards points while you pay rent.

Why pay rent using B2Bpay?

  • Use credit card not bank funds. Stop using EFT to pay large expenses like rent, tax and more. Instead, switch these payments to credit card, hold your bank funds longer and boost cash flow
  • Earn credit card points. Earning points on large recurring expenses is a great way to boost your points balance
  • Earn bonus Qantas Points (frequent flyer points) every time you pay these and ALL other business bills with our convenient online payment portal.

It’s easy to set up rent and other payments:

Switching and benefiting is easy: 

  • If you currently pay these expenses by BPAY, you’ll find your biller by searching for their BPAY Biller Code within B2BPay (you can even use your current BPAY reference number).  
  • Pay by EFT? Many property groups are already in B2Bpay or simply add your Estate Agent/Landlord to start paying. 

Make life easier by selecting to AutoPay

If your rent is the same amount each month, choose AutoPay to make your life easier. Alternatively, choose ‘One-Off’ to decide when and how much you pay or ‘Email Reminder’ to receive a payment alert every month. 

If you would like further info call us on 1300 205 575 or email  [email protected]