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For business owners, it seems that tax bills to the ATO are always just around the corner. With payments such as BAS, business owners may find themselves wondering if it’s possible to earn points on these mandatory transactions. The good news? While many major Australian banks have stopped awarding frequent flyer points for credit card payments to the government, it is still possible to earn Qantas Points and full credit card rewards points for paying tax using a payment service such as B2Bpay.
How do I pay the ATO by credit card?
B2Bpay is a bill payment service that allows you to pay almost any business expense, including the ATO, by credit card. You can use Visa, MasterCard or Amex, so if you have a points–earning credit card, you will earn full points for the transaction as most credit careds provide no or significantly reduced points when you pay your tax directly to the ATO.
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. For instance, the fee for Amex is 1.45%, which is notably higher than other domestic cards.
| 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% |
Why should I pay the ATO with credit card?
There are several major benefits to consider when it comes to paying ATO by credit card:
1. Earn Reward Points
With B2Bpay, you’ll be able to pay the ATO while earning FULL credit card points. Credit Card providers offer reduced or no rewards points, so with B2Bpay you can earn credit card points than if you paid directly, without paying an additional credit card processing fee. Plus, you can receive Qantas Points on top of that, helping your reward points accumulate even faster on tax you must pay. On the other hand, if you were to pay directly you wouldn’t have the ability to earn any points at all.
2. Cash flow
In addition to earning rewards points, paying the ATO by credit card means you’ll have money available in your bank account for longer. You can hold onto your cash during the interest-free period on your credit card, and it won’t cost you any interest so long as you pay your credit card bill on time. This can also help you to avoid late payment fees or interest charges on other business expenses if you don’t have the cash available for the due date.
3. Credit card fees are tax-deductible
When paying the ATO by credit card, you can claim your credit card processing fee as a tax deduction for your business, which helps offset the additional cost of paying by credit card. It is important to note that any interest you pay for late credit card payments is generally not tax-deductible. Learn more about claiming your processing fee as a tax deduction here.
4. Credit history
Paying your business bills by credit card can be beneficial for your credit history, given you make sure to pay your credit card bills on time. This can open you up to reduced interest rates on loans, different types of financing and better selection of credit card rates and rewards.
Additional Benefits of B2Bpay
In addition to B2Bpay making it possible to pay a variety of expenses while earning both credit card and Qantas points, B2Bpay offers even more great business benefits.
Boosts business cash flow
B2Bpay enables business owners to access the credit card interest free period for expenses they may have otherwise paid for using cash, cheque, or direct debit. You’ll be able to keep funds in your account for longer while paying your suppliers and other business expenses.
Reduced cost
Digital and credit card payments are far more cost effective than traditional payment methods, thanks to the reduced use of paper being processed, administration work, approval overheads and banking costs.
Simple software integrations
Manage all of your payments in one place by integrating your major accounting software (Xero, Quickbooks, MYOB) with B2Bpay. You’ll be able to view and pay all of your invoices, while taking advantage of automatic reconciliation. Further, your customers will love being able to pay with the simple click of a button included on your invoices.
Saves time
You’ll be able to cut out excessive administrative work from your workflow, as B2Bpay manages and pays all your business expenses online via a centralized expense management system.
Secure, flexible online solution
When using B2Bpay, cards are tokenised for security. This means your credit card information is never stored in full. And unlike traditional methods like cash or cheque, you’ll be able to make payments from any device, safely and securely.
How this Business Benefited from Using B2Bpay
To share firsthand the benefits of utilizing B2Bpay in your business, we spoke with one of our clients at Collinson’s Vacuum Packaging who saw a major shift in business over the course of 2020. “We saw customers wanting to move into the retail space and take-home meals,” says co-owner Chris Collinson. “Suddenly they’ve got a new range of products, so we needed to help them with solutions and innovation.”
As much as Collinson’s Vacuum Packaging innovation is inspired by travel, with directors previously traveling internationally two to three times per year, the Victorian-based company has used the Qantas Reward Points earned through B2Bpay to make staff travel more affordable. During the course of 2020, they’ve been able to continue earning and saving these Reward Points to position them for affordable travel as borders continue to reopen.
Sign Up for B2Bpay Today and Maximise Your Benefits
Getting a B2Bpay account set up is easy, and free! Simply fill out an online activation form so we can verify business details. Then we will quickly set your payment portal and payment page, customised with your company brand logo. We will also arrange a payment link on your invoices.
Click HERE to sign up for free. Alternatively, you can speak directly to our Sydney-based B2Bpay customer support team by contacting us at 1300 205 575.
