You can use a credit card to pay off your ATO tax bill, HECS repayment or quarterly GST payment. You could even earn points this way.
Only a small selection of rewards credit cards earn points for spending with the ATO and other government bodies.
Also, the ATO charges a fee for credit payments. Depending on the size of your tax bill, these fees might outweigh the benefit of the points you earn.
How to pay the ATO with a credit card
You can use a credit card to pay the ATO through the Government EasyPay website or through your myGov account.
You'll need your payment reference number (PRN) or electronic funds transfer (EFT) code, which can be found above the bar code on your payment slip or debt notice, or online via myGov.
How to pay the ATO using the Government EasyPay service
Enter your Payment Reference Number (PRN), the amount you're paying and your card details. You'll then see how much the card payment fee will cost.
Follow the prompts to complete the payment.
How to make an ATO payment through myGov
Log in to your myGov account.
Select the "Australian Taxation Office" link.
Click on the "Tax" column, select "Payments" and then "Payment Options".
Select the card payment option and follow the prompts to complete the payment. The credit card fee will be displayed then, too.
Note that only Australian Visa or Mastercard credit cards can be used for BPAY payments to the ATO, not Amex.
What are the ATO credit card payment fees?
When you use your credit card to pay the ATO, you'll be charged a card payment fee.
Australian Mastercard debit card: 0%
Australian Visa debit card: 0%
Australian Mastercard credit card: 0.72%
Australian Visa credit card: 0.80%
American Express: 1.45%
International Visa or Mastercard: 1.99%
You can avoid credit card fees by using a debit card or BPAY through bank account, but you won't earn points.
You could pay on your credit card using BPAY. But most credit cards won't let you earn points from BPAY transactions. Many of them also treat these payments as cash advances, which incur fees and immediate interest charges.
This might end up costing more than the card payment fee.
Which credit cards offer points for payments to the ATO?
Credit Card
Points per $1 for government charges
Other notes
Personal American Express cards (highest ATO earn rate):
1 Awards point per $1 OR 0.4 Qantas Points per $1 spent
The CommBank Awards program terms and conditions state that payments to the ATO won’t earn points unless they are made with a Business Awards or Business Platinum Awards card.
BusinessChoice Rewards Platinum: 0.33 Qantas Points per $1 spent (0.5 points per $1.50) up to 100,000 Qantas Points per month
Altitude Business Platinum: 0.5 points per $1 spent
Altitude Business Gold: 0.5 points per $1 spent (up to 20,000 Altitude Points per month)
These earn rates are specifically listed for government payments, which includes those made to the ATO.
How to check if your credit card earns points for tax payments
Look at the reward program terms and conditions. Credit cards that earn reward or frequent flyer points have a list of transactions that are not eligible to earn points. If "government charges" or "ATO payments" are on the list, then you won't earn points for your tax payment.
Contact your credit card company. Call, email, use an online chat service or leave a message on social media asking the credit card company whether or not your card earns points for ATO payments. If you decide to use social media, make sure you don't share any personal details and only mention the name of the card (rather than your account information).
Should I pay my tax bill with a credit card in the first place?
Our expert says: Is earning points on a tax payment worth it?
"Earning points is great. But the card transaction fees can really add up. You need to sit down and figure out if the value of the points you get is greater than the surcharge. This is especially true with American Express cards, as a 1.45% fee on a $3,000 payment is $43.50."
Example: Is paying your tax bill with a credit card is worth it?
Let's say you have a $10,000 tax bill with the ATO.
You pay it with an American Express card that earns you 1 Membership Reward Point per dollar spent.
Points earned: 10,000 Membership Rewards
Transaction fee (1.45%): $145
Points value: Varies, but you could get a $50 Coles digital gift card with 10,000 points.
In this example it's not worth it. Let's try another card with.
You pay it with a Mastercard credit card that earns you 1 Qantas Point per dollar spent.
Points earned: 10,000 Qantas Points
Transaction fee (0.72%): $72
Points value: Varies, but you could redeem a one-way Sydney to Melbourne reward flight for around 8,000 points. That's worth around $134, which outweighs the transaction fee.
Paying your ATO bill with your credit card via a third party platform
You can also pay the ATO with your credit card via platforms like:
Deft. This payment platform lets you make payments via your credit card. But there will be a credit card transaction fee that's slightly higher than what the ATO charges.
Sniip. You can make ATO payments via Sniip and earn the full value of your points (for example, some American Express cards offer fewer points per dollar spend on government payments, but Sniip gets you more points). But you have to pay a processing fee that may exceed the standard Amex transaction fee the ATO charges.
Frequently asked questions
If you get a new credit card that earns points for ATO payments, you might be wondering if paying your tax bill counts towards the bonus points spend requirement.
Just like earning points per $1 spent on ATO payments, the answer depends on your card. But it's unlikely if you have a card that doesn't earn points for ATO payments.
If you have a card that does earn points for ATO payments, keep in mind that credit card companies often update the conditions around earning points for ATO payments.
This makes it hard to assume a card will earn points (bonus or otherwise). So before you pay your tax bill, double-check you'll earn points and make sure you consider the card payment fee so that you can decide if it's worth it for you.
It depends on the credit card issuer. While technically the ATO is a government body, in some cases credit card transactions may not be classified as government charges and points may be awarded at the credit card provider’s discretion.
Yes. Several American Express cards let you earn Amex Membership Rewards on ATO or Australia Post payments. You can earn 1 point for every dollar spent at government bodies with the American Express Platinum card, for example.
This is the fee that the ATO charges for processing credit card payments. The fee is based on the credit card used to complete the transaction, Visa, Mastercard or American Express for example, and is a percentage of the total value of the transaction.
You can also use a credit card to make a voluntary HECS-HELP repayment through MyGov. There will be a transaction fee for doing this.
Richard Whitten is Finder’s Senior Money Editor, with over eight years of experience in home loans, property, credit cards and personal finance. His insights appear in top media outlets like Yahoo Finance, Money Magazine, and the Herald Sun, and he frequently offers expert commentary on television and radio, helping Australians navigate mortgages and property ownership. Richard started his career in education and textbook publishing in South Korea. He holds multiple industry certifications, including a Certificate IV in Mortgage Broking (RG 206) and Tier 1 and Tier 2 certifications (RG 146), as well as a Bachelor of Education from the University of Sydney and a Graduate Certificate in Communications from Deakin University.
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I have around $150K expenses and have been using Citibank Master Card attached to diners card. This has given me 3 points on diners and 1.25 on MasterCard including paying government charges. They have now blocked me transferring to Diners Corporate Card and so then cannot transfer to Qantas.
What card can I use that has linking for my wife and pays 3 points on some and 1+ for other on Visa or MasterCard and allows payment of government charges?
Calvin
Finder
JonathanMay 16, 2015Finder
Hi Calvin,
Thanks for your inquiry.
Please see the following page for credit cards that earn points paying tax. Please refer to the comparison table and review pages which will provide more details such as additional cardholders, fees, interest rates and rewards points earnings rates.
Cheers,
Jonathan
GordonMay 11, 2015
l have NAB issued Platinum Qantas Cards ( Visa and Amex ) and heard that maybe you can no longer earn Frequent Flyer points from paying my ATO personal tax bills . Are you able to confirm the current status ? Many thanks
Finder
JonathanMay 13, 2015Finder
Hi Gordon,
Thanks for your inquiry.
That is correct, from the 5th May 2015 no rewards/ frequent flyer’s points can be accumulated from ATO payments with NAB. You may also refer to our guide to compare credit cards that have rewards points earnings and allow payments to the ATO and see points per $1 for government charges.
Cheers,
Jonathan
EMSMarch 13, 2015
I am with commonwealth bank and has qantas frequent flyer direct. Do I earn points paying my tax(BAS and annual tax return)?
Finder
ElizabethMarch 13, 2015Finder
Hi EMS,
Thanks for your question.
As this is a business-related expense (BAS) you will not earn points on this. However, in the terms and conditions, tax payments are not specifically excluded unless they are for business. You might want to confirm this with Commonwealth Bank.
I hope this has helped.
Thanks,
Elizabeth
StuFebruary 27, 2015
Hi,
Do you know if the CBA diamond AMEX will give me points for ATO payments? And if so how many?
Thanks!
Finder
JonathanFebruary 27, 2015Finder
Hi Stu,
Thanks for your inquiry.
The CBA Diamond AMEX card does not earn points for ATO payments. You may refer to our guide to compare credit cards that have rewards points earnings and allow payments to the ATO and see points per $1 for government charges.
Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you.
Cheers,
Jonathan
annieFebruary 18, 2015
Hi Shirley,
I have 4 cards and need to pay $80,000.00 in BAS (Tax to the ATO) , Can you please advise which card with the ATO gives the most frequent flyer points we are with Virgin Velocity program
We have the virgin visa platinum, the Velocity American Express , the Westpac altitude Black Mastercard and the American Express Altitude Black. Are any of these cards good or should we swap to anz black? We pay with Optus smart pay direct to the ATO.
Finder
JonathanFebruary 19, 2015Finder
Hi Annie,
Thanks for your inquiry.
At the moment, American Express is the only credit card issuer whose terms and conditions state, that you can earn points by paying tax in the Australian market, given that you do not use BPAY. Please refer to our guide for more information on earning rewards points by paying your tax bill. The AMEX Altitude Black earns 1.5 Altitude points per dollar paid to the ATO. Remember to ensure to read through the relevant product disclosure statement and terms and conditions of the credit card before applying.
I hope this helps.
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What is the best rewards credit card for me.
I have around $150K expenses and have been using Citibank Master Card attached to diners card. This has given me 3 points on diners and 1.25 on MasterCard including paying government charges. They have now blocked me transferring to Diners Corporate Card and so then cannot transfer to Qantas.
What card can I use that has linking for my wife and pays 3 points on some and 1+ for other on Visa or MasterCard and allows payment of government charges?
Calvin
Hi Calvin,
Thanks for your inquiry.
Please see the following page for credit cards that earn points paying tax. Please refer to the comparison table and review pages which will provide more details such as additional cardholders, fees, interest rates and rewards points earnings rates.
Cheers,
Jonathan
l have NAB issued Platinum Qantas Cards ( Visa and Amex ) and heard that maybe you can no longer earn Frequent Flyer points from paying my ATO personal tax bills . Are you able to confirm the current status ? Many thanks
Hi Gordon,
Thanks for your inquiry.
That is correct, from the 5th May 2015 no rewards/ frequent flyer’s points can be accumulated from ATO payments with NAB. You may also refer to our guide to compare credit cards that have rewards points earnings and allow payments to the ATO and see points per $1 for government charges.
Cheers,
Jonathan
I am with commonwealth bank and has qantas frequent flyer direct. Do I earn points paying my tax(BAS and annual tax return)?
Hi EMS,
Thanks for your question.
As this is a business-related expense (BAS) you will not earn points on this. However, in the terms and conditions, tax payments are not specifically excluded unless they are for business. You might want to confirm this with Commonwealth Bank.
I hope this has helped.
Thanks,
Elizabeth
Hi,
Do you know if the CBA diamond AMEX will give me points for ATO payments? And if so how many?
Thanks!
Hi Stu,
Thanks for your inquiry.
The CBA Diamond AMEX card does not earn points for ATO payments. You may refer to our guide to compare credit cards that have rewards points earnings and allow payments to the ATO and see points per $1 for government charges.
Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you.
Cheers,
Jonathan
Hi Shirley,
I have 4 cards and need to pay $80,000.00 in BAS (Tax to the ATO) , Can you please advise which card with the ATO gives the most frequent flyer points we are with Virgin Velocity program
We have the virgin visa platinum, the Velocity American Express , the Westpac altitude Black Mastercard and the American Express Altitude Black. Are any of these cards good or should we swap to anz black? We pay with Optus smart pay direct to the ATO.
Hi Annie,
Thanks for your inquiry.
At the moment, American Express is the only credit card issuer whose terms and conditions state, that you can earn points by paying tax in the Australian market, given that you do not use BPAY. Please refer to our guide for more information on earning rewards points by paying your tax bill. The AMEX Altitude Black earns 1.5 Altitude points per dollar paid to the ATO. Remember to ensure to read through the relevant product disclosure statement and terms and conditions of the credit card before applying.
I hope this helps.
Cheers,
Jonathan