The ATO has given business owners a great points-earning tax loophole
Key takeaways
- The credit card surcharge ban and recent government decisions have created a temporary loophole allowing business owners to earn points on their tax.
- Business owners have until 30th of June 2027 to pay their tax bills to the ATO and earn points surcharge-free.
- What's next: Getting the right business credit card is essential if you want to take advantage of this opportunity.
As the dust settles on the RBA's credit card surcharge ban, Australian business owners are left with a temporary opportunity to earn points on their tax bill via their credit cards.
Prior to the surcharge ban, the ATO accepted credit cards as a payment method for tax bills, but added a surcharge to cover the costs of the transaction.
Surcharges are now banned. The ATO had announced it would stop accepting credit cards, but that decision has been delayed.
Businesses can now pay their tax obligations by 30 June 2027 with a points-earning credit card, earn points, and pay no surcharge.
Want to earn points on your tax bill?
Check out all the business credit cards that let you earn points with the ATO
How does it work?
Let's say your business has a tax bill of $60,000. If you choose to pay this bill using a credit card like the American Express Qantas Corporate Card, which earns one Amex Membership Rewards Point per dollar on ATO payments, you would earn 60,000 points for paying your tax bill.
Prior to the surcharge ban, this payment would incur a 1.45% surcharge, or $870.
Until 30 June 2027, business owners can get the upside of earning points without the significant surcharge cost on top.
What are the best credit cards for earning points with the ATO?
You'll need a business credit card to earn points on your tax bill. But not just any credit card.
There's only a handful of credit cards that let you earn points when making government payments, including tax payments to the ATO.
Some of the best options include:
- American Express Qantas Corporate Card. You can earn 1 Membership Rewards Point per $1 on ATO payments. These points transfer to Qantas Points.
- American Express Velocity Business Card. This card earns 0.5 Velocity Points per $1 on ATO payments.
- American Express Platinum Business Card. You can earn 1 point per $1 on ATO payments.
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