Get Rewarded for Paying Your Taxes: A Guide to ATO Credit Card Payments and Earning Points

credit cards

Across Australia, corporate tax season is frequently greeted with a collective groan. What if, however, there was a method to make this chore more enjoyable? Welcome to the world of ATO credit card payments, where paying your company taxes & BAS can earn you reward points and turn spending into saving. With this creative strategy, you can gain points for each dollar you spend on company taxes by utilising the reward programs of particular credit cards. Interesting, huh? We’ll go through all the details of this method in this article so that you can maximise your tax payments.

Before you start 

Making sure you have the appropriate credit card is the first step in putting this rewards approach into practice. It’s important to conduct your research because not all credit cards give points for ATO payment options. 

  • Study your card: Examine the rewards program’s terms and restrictions on your credit card. Does it award points at a full rate for government payments or does it do so at a reduced rate? Don’t be afraid to ask your bank for advice if something is unclear.
  • Set your limits: The number of points you can accumulate via ATO payments may be capped by some credit cards. It will be easier to control your expectations and maximise your rewards if you are aware of these restrictions up front.
  • Become familiar with the market: In Australia, there are a number of credit cards that are known to award points for ATO payments. Several American Express cards and Qantas American Express cards offer ATO pay by credit card and award points to users. Visa NAB Qantas Business Signature Card also gives Qantas points for making payments to Australian Taxation Office. The terms of each card are subject to change, so reading the small print before making your move and comparing different credit cards is always necessary.

To ensure that you’re in the best possible position to earn the most points come tax time, it’s important to gather as much information as you can.

How to make your first ATO credit card payment? 

You’re prepared to make your payment once you have a credit card that rewards ATO payments. A step-by-step tutorial for using a credit card to pay your ATO bill is provided below:

  • Log in: Logging into your MyGov account is the first step. This is the core location where all of your tax information is kept in strict confidence, making it the ideal platform for processing your ATO payment.
  • Navigate: Go to the ATO section after logging in. You can choose from a variety of choices here regarding your tax liabilities, including the ability to send a payment.
  • Enter the details: You will be prompted to provide some information after selecting the payment option. Both the payment amount and the payment method must be specified. The option to “pay ATO by credit card” is available here. By choosing this, you will receive reward points for every dollar you spend performing civic chores.
  • Confirm and finish: You can examine and confirm your payment after entering all the required information. Your ATO payment credit card transaction will be executed after confirmation, putting you one step closer to receiving your benefits.

Here’s another approach to use: The ATO and the Reserve Bank of Australia both offer safe payment facilities. You can use the following methods to make online payments as either an individual or a business.

  • Choose “Make a payment” from the menu.
  • Enter the amount you are paying, your Payment Reference Number (PRN), and your credit card information. The price of the card payment fee will then be shown.
  • To finish the payment, follow the instructions provided 

If these two ways are not working for you, it is also possible to use your credit card for BPAY payments of your taxes, and here is how to do that: 

  • Check if your card allows BPAY payments, and if yes, continue with the following steps.
  • After logging in to your credit card online banking service, select the BPAY option.
  • Fill in the details of your payment. Make sure to include the BPAY Biller Code and Reference Number. Both of these can be found on your ATO payment slip or debt notice. 
  • Complete the transaction by following the instructions provided by the website.

It is important to know that BPAY payments to the ATO can only be done with Australian Visa or Mastercard credit cards. Another thing to keep in mind is that most credit card companies treat BPAY like a cash advance transaction (or at least, similar to it). Those who do exactly that will charge you a cash advance fee and the cash advance interest rate, both starting at the time of the transaction. Also, users can’t usually expect points through BPAY payments from a credit card, but it is nonetheless a practical way to do your civic duty. 

Paying ATO and BAS for business users

The alternative to BPAY and all other methods listed above is B2Bpay, which provides full points for ATO transactions, with a credit processing fee included. This is a great solution, especially for business users, since it accepts all sorts of company tax and BAS payments while rewarding full credit card rewards points. B2Bpay works with Visa, MasterCard, and Amex cards, and if yours has the ability to earn points, you will benefit from your business and personal transactions. With processing fees ranging from 1.2% to 2.4% (even lower in the case of company tax deduction), earning credit card and other points will definitely outweigh the fee costs. Additional benefits for your business if you decide to pay ATO with credit card and handle your BAS payments the same way are: 

  • Boosted business cash flow 
  • Reduced costs 
  • Simple software integration 
  • Time savings
  • Security and flexibility

What rewards to expect from your ATO card payments? 

The idea to pay ATO by credit card can be very alluring, and there are various appealing ways to redeem the reward points acquired from these payments. You might be able to redeem these points for travel, including flights and hotel stays, depending on your credit card issuer. Also, these points can frequently be exchanged for retail purchases or even cashback if you don’t have any travel plans. As an alternative, some suppliers permit you to use these points to settle the debt on your credit card. 

The money you save can now be aimed at your entertainment, shopping, or household expenses. If you are a business owner, use your savings for something that is truly important, like improving your marketing strategy with your SEO experts. It all functions similarly to receiving a tax return; it is a reward for doing civic tasks. 

Written by Oliver Applebaum

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