Finder makes money from featured partners, but editorial opinions are our own.
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.
American Express Credit Card Offer
Qantas American Express Premium Card
Receive 20,000 bonus Qantas Points
Eligibility criteria, terms and conditions, fees and charges apply
American Express Credit Card Offer
Earn 20,000 bonus Qantas Points on eligible spend. Plus, 2 yearly complimentary Qantas Club lounge invitations and a range of complimentary insurance covers.
Get 20,000 bonus Qantas Points when you get approved and spend $3,000 in the first 3 months.
Earn 1 Qantas Point per $1 spent, 0.5/$1 on government spend and 2 points on select Qantas Australia spend.
Complimentary travel insurance and two complimentary single entry invitations to the Qantas Club Lounge per year.
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
Amy's expertise
Amy has written 582 Finder guides across topics including:
Well-known among frequent flyers and point chasers, this controversial strategy involves taking advantage of bonus point offers on different credit cards.
Gift cards can be thoughtful and practical presents for people. Read this guide on Woolworths and Coles gift cards to find out what you need to know when buying and using them.
Credit card rewards and other loyalty programs have the potential to offer you extra value for your spending – here’s how to work out if you are getting it.
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.
Cheers,
Jonathan
How likely would you be to recommend Finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Important information about this website
finder.com.au is one of Australia's leading comparison websites. We are committed to our readers and stands by our editorial principles
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labeling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
We make money by featuring products on our site. Compensation received from the providers featured on our site can influence which products we write about as well as where and how products appear on our page, but the order or placement of these products does not influence our assessment or opinions of them, nor is it an endorsement or recommendation for them.
Products marked as 'Top Pick', 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product. You can learn more about how we make money.
When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
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