BAS time again - Paying ATO with Amex

For those that have BAS to complete by 28th Feb. Payments can be made by credit card at this site,
https://www.optussmartpay.com/governmenteasypay-ato/

Amex card payment fee 1.25%
Visa/MCard fee 0.65%

 

Thanks for the info and welcome, good first post.

 

It would be great if US taxpayers had the option of paying such low surcharges as these Aussies.

 

Don't worry, we have many other disadvantages that you would not like. Every place has it own pros and cons.

 

I like the idea of turning a bummer like paying tax into something good like frequent flyer points. I use my business card and claim the fee back as a deduction to.

 

That's hard to beat.

 

I like the idea of not having to pay the tax in the first instant.

 

Claiming the processing fee as a tax deduction means for a visa payment someone on the company rate (or average tax bracket) is only paying a effective surcharge of .455% (or Amex .875%)

Someone who is organised in their tax affairs could in theory earn quite a few extra points for a very low cost around the 30 June Quarter, especially if they are operating under a company structure.

 

Chad have you read the conditions on claiming as a tax deduction?
They are very limited

 

I may be mistaken (and usually am) but the way I interprete the following is that the only thing payed in a BAS that wouldn't be deductible is any amount relating to personal/company tax instalments - anything else and the fee is deductible. I'd also note, to my knowledge, the phrase "did not borrow money" has not been tested in court. In theory if you had a credit balance on your card you could claim a tax deduction on the fee relating to an income tax liability payment as well - seeing as if the card remained in credit you technically haven't borrowed money from the provider.

 

See
http://law.ato.gov.au/atolaw/view.htm?docid=AID/AID2010159/00001
http://law.ato.gov.au/atolaw/view.htm?docid=AID/AID2010160/00001
http://law.ato.gov.au/atolaw/view.htm?docid=AID/AID2010161/00001

 

Interesting links - again these only potentially rule out the portion of the payment that relates to the tax liability, not the other payments on the BAS. They also only reference salary and wage earners (not for example a company) and the fee is only non deductible under s25-5 if money is borrowed. If your card remained in credit balance after the payment you have not borrowed money from the credit provider so you couldn't claim under s8-1, but could still claim under s25-5.

 

Salary and wage earners would not be filling out BAS forms and paying their GST instalments as these apply to businesses whether sole-traders or companies.

Thread heading - For those that have BAS to complete by 28th Feb

 

From your web link http://www.ato.gov.au/businesses/content.asp?doc=/content/00253422.htm
The CPF is deductible to the extent that:

• you incurred it as a result of paying an income tax liability and you did not borrow money from your card provider to make the payment (Tick) In my case the instalment that the ATO wants now before I submit my trading results to get an actual amount.
  
• • you incurred it as a result of paying a goods and services tax, (Tick) GST Monies collected and due to the government
  • 
    
  • [SIZE=12px][FONT=Arial][SIZE=12px][FONT=Arial][SIZE=12px][FONT=Arial][SIZE=12px][LIST]
    [*][SIZE=12px][SIZE=4]you incurred it as a result of making PAYG withholding payments where you can claim a deduction for the wages and salaries that gave rise to the withholding obligation [B](Tick) Monies collected from employees salaries and owed to the ATO[/B][/SIZE][/SIZE]
    [*][SIZE=12px][SIZE=4][B]
    [/B][/SIZE][/SIZE]
    [*][SIZE=4][B]I think I am all good. Been claiming for a number of years now, the idea is to get points for the large sums involved, the surcharge is a necessary expense to get those points but deductible which reduces the burden.[/B][/SIZE]
    [/LIST][/SIZE][/FONT][/SIZE][/FONT][/SIZE][/FONT][/SIZE]

 

Can I pay my personal tax (a worthwhile amount - sadly - due next month) by Amex as well?

 

The site itself accepts EFT codes, I am not sure what the situation is regarding personal tax. If you have an EFT code on your assessment then it may work. You will still be charged the surcharge, you just wouldn't be claiming it.

 

Thanks. I'll see what the assessment notice says once I receive it!

 

Even better news....the Visa and MasterCard rate to pay anything to the Australian Taxation Office has dropped from 0.65% to 0.48% this month.

 

There is now a big cost difference now that American Express moved to 1.45% fee to earn 1.5 points per dollar paying the Australian Taxation Office.
Have loved paying on Citi Select Kris Flyer to earn a true 1.33 points. Seeing the card is a Visa the cost to earn a point is 0.36 cents so that works a treat.