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.
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 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.
- Go to the Government EasyPay website for ATO payments.
- Select the "Make a payment" option.
- 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 point per $1 spent |
|
| Personal American Express cards (lower ATO earn rate): | 0.5 points per $1 spent | These American Express cards all list an earn rate for payments to government bodies, which includes the ATO. |
| American Express business and corporate cards (highest ATO earn rate): | 1 point per $1 spent | These American Express cards all specifically list an earn rate for payments to government bodies, including the ATO. |
| American Express business cards (lower ATO earn rate): | 0.5 points per $1 spent | These American Express cards all specifically list an earn rate for payments to government bodies, including the ATO. |
| ANZ | 0.5 points per $1 spent | These ANZ cards specifically list this earn rate for government payments. |
| Bank of Melbourne | 0.5 Amplify Points per $1 OR 0.25 Qantas Points per $1 spent* | *Requires opt-in to the Qantas program These earn rates are specifically listed for government payments, which includes those made to the ATO. |
| BankSA | 0.5 Amplify Points per $1 OR 0.25 Qantas Points per $1 spent* | *Requires opt-in to the Qantas program These earn rates are specifically listed for government payments, which includes those made to the ATO. |
| Commonwealth Bank | 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. |
| NAB |
| These earn rates are specifically listed for payments made to the Australian Taxation Office. |
| St.George | 0.5 Amplify Points per $1 OR 0.25 Qantas Points per $1 spent* | *Requires opt-in to the Qantas Frequent Flyer program These earn rates are specifically listed for government payments, which includes those made to the ATO. |
| Westpac |
| 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.
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Ask a question
Hi there, I know HSBC has changed it’s reward points system, however, do they still pay points for paying your BAS.
Hi Rhon, thanks for your inquiry!
Unfortunately tax payments/ business expenses are exempt from earning rewards points.
Cheers,
Jonathan
Can you pay and get point on ATO payments with ANZ Black still?
Hi Adam,
Thanks for your question.
According to the ANZ Rewards terms and conditions, cardholders are unable to accrue points on government charges.
Thanks,
Sally
What is the best visa/mastercard that you can use to pay your BAS statement and claim max points?
Thanks for your help
Hi Louise,
Thanks for your question.
Generally American Express credit cards can earn points for ATO payments. Whilst a number of banks are removing this feature from their cards, Westpac still allows this type of transaction. Remember to ensure to read through the relevant product disclosure statement and terms and conditions of the credit card before applying.
Cheers,
Jonathan
I am currently a Commonwealth Bank Platinum credit card holder and use my credit card for everyday personal expenses . I am interested in applying for the American Express Velocity platinum card to take advantage of the special offer of 100,000 velocity points. I would like to know which outlets I can use the card as I believe quite a few outlets will not accept American Express card. Are you able to assist me with this information?
Regards
Robert
Hi Robert, thanks for your inquiry!
Merchants/ outlets who display the American Express logo and have an agreement with this credit card issuer will accept American Express cards. Unfortunately there is no comprehensive list of available outlets due to the amount of businesses operating. Were there any specific outlets you were inquiring about today?
Cheers,
Jonathan
With the ANZ Rewards Black Visa card, you get about 1% cashback when paying income tax and BAS payments to the ATO using Government EasyPay. The ATO charges you a 0.42% fee for the privilege of paying tax via your VISA card, so you are well ahead by paying this way rather than paying it by cash or regular bank transfer.