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How to pay the ATO by credit card and earn rewards points
You can pay the ATO using an Amex, Mastercard or Visa. Here’s what it will cost you in fees, and how to earn rewards points when paying your tax bill.
When your tax bill rolls around, whether it's a quarterly GST payment, an end of year balance or self-employed PAYG payments, you may be looking for options to pay the Australian Taxation Office (ATO) using a credit card.
You can make payments using BPAY or even go on a payment plan, but if you want to pay by credit card, you can do so either online or over the phone.
The first thing to know: only a small selection of rewards credit cards earn points for spending with the ATO and other government bodies, and the amount of points earned is also usually at a lower rate than points you earn for everyday purchases.
Also, the ATO charges a fee for credit payments. So, let's take a closer look at how it all works.
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Annual fee of $249 p.a. and purchase interest rate of 23.99% p.a.
You can use a credit card to pay the ATO through the Government EasyPay website or phone service 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. You may also be able to make a BPAY payment from your credit card, but note that most credit card issuers treat BPAY transactions in a similar way to cash advance transactions. This means you could be charged a cash advance fee and the cash advance interest rate from the time the payment is made. You also don't typically earn points for BPAY payments from a credit card – so this option is not ideal for most.
How to pay the ATO using the Government EasyPay service
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.
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.
Or, you can call the Government EasyPay phone service on 1300 898 089 and provide your details over the phone.
How to make an ATO payment through myGov
If you're an individual or sole trader, you can pay your tax bill using your credit card through your myGov account, as long as you have linked it to the ATO.
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. The cost is calculated as a percentage of your payment, with the following rates for different card types:
American Express: 1.45%
Australian Visa credit card: 0.80%
Australian Mastercard credit card: 0.72%
Australian Mastercard debit card: 0.20%
Australian Visa debit card: 0.40%
International Visa or Mastercard: 1.99%
If you want to avoid card payment fees, you could choose to pay the ATO using BPAY or a bank transfer from your transaction account. But keep in mind that BPAY payments made from a credit card usually aren't eligible for points and can attract cash advance fees.
Which credit cards offer points for payments to the ATO?
To help you weigh up your options, this table shows credit cards that will earn you points when you make a payment to the ATO – including the amount of rewards you'll get for every dollar you spend.
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: Equivalent 0.33 Qantas Points per $1 spent (0.5 points per $1.50) up to 100,000 Qantas Points per month
Altitude Business Gold and Platinum: 0.5 points per $1 spent
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).
Other important details about using a credit card and earning points for tax payments
If you’re planning to use a credit card for your ATO payment, make sure you also keep the following in mind:
Credit card reward point exceptions
There is plenty of anecdotal evidence online that suggests some people have earned rewards for ATO payments on other credit cards – including some that state government payments are not eligible for rewards.
However, reward program terms and conditions usually note that there could be variations. They also typically reserve the right to make changes or exclude transactions from earning rewards.
So, while there may be times when you do earn points on ATO payments with a card that does not define them as "eligible transactions", it could be risky.
Business payments on personal credit cards
If you're planning to use a credit card to pay your ATO debt for a business, keep in mind that most personal credit cards have restrictions around business spending (including personal business spending). So, for example, if you run a small business and pay with your personal credit card, the transaction may not be eligible to earn any points.
ATO payments deadline
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.
Credit card surcharge tax deductions
The ATO card payment fee may be tax deductible. For example, if you're paying a tax bill for your business. You can ask your accountant if you’re eligible to claim this cost.
Is earning points on a tax payment worth it?
The cost of the ATO card payment fee means that the value you get from any points is likely to be worth less than what you spend to earn them. However, if you really want to earn points for your tax payment, you can work out the exact value by considering:
The surcharge you’ll pay based on the card you use - what will the fee be?
The amount of points you’ll earn based on your tax payment - what's the total points you'll earn?
Your reward balance and/or any rewards you’re saving up to redeem - do you have a goal you need to reach sooner than later?
Example: Working out if paying your tax bill with a credit card is worth it
Say you had a tax bill of $10,000 and wanted to pay with an American Express credit card that offers 0.5 Qantas Points per $1 spent with the ATO. Here’s how the costs and points would break down:
ATO card payment fee: $145 (based on the 1.45% charge for Amex transactions)
Points earned: 5,000 Qantas Points
In terms of rewards, these points could get you a $25 David Jones digital gift card (from 4,790 points), or be saved up for flights or other high-value frequent flyer rewards.
If you really needed an extra 5,000 Qantas Points, earning them in this way would be cheaper than buying them, with the Qantas Frequent Flyer program offering 5,000 points for $208. So in this case, the value of the points really depends on how much you want them.
It’s also worth noting that you’ll typically get more value per point if you use an Australian Mastercard or Visa credit card that offers points for ATO payments, because the ATO payment fee is much lower for these types of credit cards compared to American Express cards.
Either way, looking at the total cost of the payment fee and the amount of points you’ll earn based on your tax debt and credit card will help you decide if it’s worth it.
FAQs about earning points for credit card payments to the ATO
If you want to know more about credit cards that earn points for ATO payments and other government charges, you’ll find answers here to some of the most common questions. Or, if you have another question, get in touch with us by filling out the comment box below.
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.
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.
Amy Bradney-George was the senior writer for credit cards at Finder, and editorial lead for Finder Green. She has over 16 years of editorial experience and has been featured in publications including ABC News, Money Magazine and The Sydney Morning Herald. See full bio
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Am I correct to assume that, from reading above, I will earn 3 points per dollar spent in paying the ATO on the CBA Business Awards Platinum card?
Thanks
Finder
JasonFebruary 23, 2017Finder
Hi Ian,
Thank you for your inquiry.
Yes, you can earn Commonwealth Bank Awards points for ATO payments with CommBank Business Awards Platinum credit card. You will get 1 reward point per dollar spent when you use your MasterCard and 3 points per dollar spent you use your AMEX card. Points are earned on eligible transactions (most purchases, but not, for example, BPAY transactions, cash advances, payments to the Australian Taxation Office unless made using a Business Awards card, or balance transfers) and are subject to points capping.
Kind regards,
Jason
BobbySeptember 26, 2016
Hi,
If I have a credit limit of let say $20,000 on my westpac altitude black and have a tax bill of let’s say $100,000 can I put extra $80k from my other account into the credit card account and pay the $100k ato bill with the westpac altitude black Amex to earn the reward points for the full $100k? If yes how many points am I going to earn in total and is the surcharge worth it?
Thanks for your help.
Regards,
Bobby
Finder
MaySeptember 26, 2016Finder
Hi Bobby,
Thanks for your inquiry.
Your credit card limit is the amount that you are allowed to spend on your card. So if you want to pay your tax bill worth $100K in order to earn points but your credit card limit is only $20,000, I’m afraid that won’t be possible. I suggest that you contact Westpac directly to verify if you can opt out of being able to exceed your credit limit and still earn points on your ATO payments.
Cheers,
May
DavidAugust 16, 2016
Hi everyone
I have Westpac Singapore Airlines Kris Flyer Platinum AMEX and VISA cards. I know they are no longer available to new applicants. Do they still offer points for ATO payments and if so, how many points per dollar for AMEX and VISA.
Regards,
David
Finder
MayAugust 16, 2016Finder
Hi David,
Thanks for your inquiry.
Just to confirm, as stated in the T&Cs, a Westpac Platinum credit card that earns Altitude points will let you collect 1 Altitude Points per $1.00 paid to the ATO using your Altitude American Express. Whilst no Altitude points will be earned using Visa or MasterCard for ATO payments.
For your reference, I have sent you an email that contains the link to the Westpac rewards T&Cs.
Cheers,
May
JasonMay 16, 2016
Hi guys
I was under the impression Westpac Altitude Black still pays out on ATO points? Any chance you can confirm this?
Many thanks for your hard work!
Finder
SharonMay 16, 2016Finder
Hi Jason, thanks for your inquiry.
Yes, that is correct. You will earn 1.5 Altitude Points for each $1.00 paid to the ATO using
an Altitude Black American Express Card.
Cheers,
Sharon
AussieguyMay 16, 2016
Is 1 Altitude Black American Express Card point worth 1 QF or VA point when transferred to their F/F programmes?
Finder
MayMay 17, 2016Finder
Hi Aussieguy, thanks for your inquiry!
With Westpac Altitude Credit Card, the points you can transfer to Qantas or Velocity FF programs are the following:
1. For $1 spent on AMEX = 1 Qantas point; for $1 spent on Visa = 0.5 Qantas point
2. For 2 Altitude Points = 1 Velocity point
Please feel free to check the links that I’ve sent to your email for further information about transferring of your Altitude points to Qantas and Velocity FF programs.
I hope this is helpful.
Cheers,
May
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Can I earn points when I pay ATO bills with my Commonwealth Diamond AMEX/MasterCard credit card?
Hi Michael,
Thank you for your enquiry.
Please note that you cannot earn rewards points with Commonwealth Bank Diamond Awards Credit card on payments to the Australian Taxation Office (ATO).
You can earn reward points with Commonwealth Bank Diamond Awards credit card on eligible transactions but not on balance transfers, BPAY transactions, cash advances and payments to the Australian Taxation Office (ATO), unless made using a Commonwealth Bank Business Awards Credit card, Gold Awards Card or Business Awards Platinum card.
Kind regards,
Jason
Am I correct to assume that, from reading above, I will earn 3 points per dollar spent in paying the ATO on the CBA Business Awards Platinum card?
Thanks
Hi Ian,
Thank you for your inquiry.
Yes, you can earn Commonwealth Bank Awards points for ATO payments with CommBank Business Awards Platinum credit card. You will get 1 reward point per dollar spent when you use your MasterCard and 3 points per dollar spent you use your AMEX card. Points are earned on eligible transactions (most purchases, but not, for example, BPAY transactions, cash advances, payments to the Australian Taxation Office unless made using a Business Awards card, or balance transfers) and are subject to points capping.
Kind regards,
Jason
Hi,
If I have a credit limit of let say $20,000 on my westpac altitude black and have a tax bill of let’s say $100,000 can I put extra $80k from my other account into the credit card account and pay the $100k ato bill with the westpac altitude black Amex to earn the reward points for the full $100k? If yes how many points am I going to earn in total and is the surcharge worth it?
Thanks for your help.
Regards,
Bobby
Hi Bobby,
Thanks for your inquiry.
Your credit card limit is the amount that you are allowed to spend on your card. So if you want to pay your tax bill worth $100K in order to earn points but your credit card limit is only $20,000, I’m afraid that won’t be possible. I suggest that you contact Westpac directly to verify if you can opt out of being able to exceed your credit limit and still earn points on your ATO payments.
Cheers,
May
Hi everyone
I have Westpac Singapore Airlines Kris Flyer Platinum AMEX and VISA cards. I know they are no longer available to new applicants. Do they still offer points for ATO payments and if so, how many points per dollar for AMEX and VISA.
Regards,
David
Hi David,
Thanks for your inquiry.
Just to confirm, as stated in the T&Cs, a Westpac Platinum credit card that earns Altitude points will let you collect 1 Altitude Points per $1.00 paid to the ATO using your Altitude American Express. Whilst no Altitude points will be earned using Visa or MasterCard for ATO payments.
For your reference, I have sent you an email that contains the link to the Westpac rewards T&Cs.
Cheers,
May
Hi guys
I was under the impression Westpac Altitude Black still pays out on ATO points? Any chance you can confirm this?
Many thanks for your hard work!
Hi Jason, thanks for your inquiry.
Yes, that is correct. You will earn 1.5 Altitude Points for each $1.00 paid to the ATO using
an Altitude Black American Express Card.
Cheers,
Sharon
Is 1 Altitude Black American Express Card point worth 1 QF or VA point when transferred to their F/F programmes?
Hi Aussieguy, thanks for your inquiry!
With Westpac Altitude Credit Card, the points you can transfer to Qantas or Velocity FF programs are the following:
1. For $1 spent on AMEX = 1 Qantas point; for $1 spent on Visa = 0.5 Qantas point
2. For 2 Altitude Points = 1 Velocity point
Please feel free to check the links that I’ve sent to your email for further information about transferring of your Altitude points to Qantas and Velocity FF programs.
I hope this is helpful.
Cheers,
May