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If you have to make a payment to the Australian Taxation Office (ATO), using your credit card is a convenient and potentially rewarding way to do it. But there are also fees for paying the ATO by card, as well as strict terms and conditions around earning points.
Use this guide to learn more about your options, including the different ways you can use a card to pay your tax bill, the fees involved and when you'll earn credit card points for ATO payments so you can decide if this is the right way for you to pay your taxes.
Eligibility criteria, terms and conditions, fees and charges apply
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You can use a credit card to pay the ATO through the Government EasyPay website or phone service, via your MyGov account or through BPAY. You'll find details on each option below, but before you get started, make sure you have the following handy:
When you use a card to pay the ATO through the Government EasyPay service or myGov, you'll be charged a card payment fee. This fee is a percentage of the payment you make and varies depending on the type of card you use. The current rates are:
You will be informed of the fee and total transaction amounts before finalising your payment.
This secure payment service is provided by the ATO and the Reserve Bank of Australia. It allows you to make online payments as either an individual or a business using the following steps.
Alternatively, you can call the Government EasyPay phone service on 1300 898 089 and provide your details over the phone.
If you're an individual or sole trader, you can pay your tax bill through your myGov account (as long as you have linked it to the ATO).
If your credit card allows BPAY payments, you can use the following steps to pay the ATO:
Keep in mind that most credit card issuers treat BPAY transactions in a similar way to cash advance transactions. When this is the case, you could be charged a cash advance fee and the cash advance interest rate from the time the transaction is made. You also usually don’t earn points for BPAY payments from a credit card.
Additional fees and penalties may apply if you don't settle your bill with the ATO by the due date listed on your bill or Tax Assessment Notice. Keep in mind that transactions done outside regular office hours are processed the following business day. This includes payments made after 6pm (Sydney time) on weekdays, as well as those made on weekends or public holidays.
If you're having trouble paying the full amount owed, call the ATO on 13 28 65 (for individuals) or 13 72 26 (for businesses) to discuss your options. You can also request a payment plan through a registered tax agent or via myGov.
There is only a limited range of credit cards that offer points for ATO transactions. So, if you have a rewards credit card you plan to use, refer to the program's terms and conditions to find out if government payments count as "eligible purchases" that earn rewards points. If your current card doesn't offer points, you may want to compare cards that specifically mention the earn rate for ATO and government payments.
As well as the potential points you could earn, there are several other reasons you might choose to pay the ATO by credit card. We've outlined these below.
Make sure you also look at the following factors before pulling out plastic for your ATO payments:
With most credit card payments to the ATO attracting a surcharge make sure you do your sums before deciding how to pay. It's also worth considering fee-free options – such as BPAY or a direct transfer from your everyday bank account – so that you can find the most convenient and affordable way to pay your tax bill.
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