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
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