ATO Processing Fees – Discover a better way to pay your tax bills

When it comes to handling your business tax obligations, understanding the ins and outs of ATO processing fees can make a significant difference in getting more value from your business outgoings. Payment methods and their associated costs might seem straightforward at first glance, but there’s more to the story when considering the Rewards potential you might be leaving on the table.

The landscape of ATO payment options

The Australian Taxation Office offers a variety of ways to settle your business tax bills, each with its considerations:

• BPAY: Simple and straightforward, using your biller code through phone or internet banking.
• Credit or Debit Card: Visa, Mastercard, and AMEX cards are accepted through the ATO’s online Government Easy Pay portal.
• Direct Debit: Authorising the ATO to deduct payments directly from your account.
• Bank Transfer: The classic approach of paying directly from your bank at the time of payment.

What you’ll pay when dealing directly with the ATO

At first glance, these processing fees might appear quite reasonable. The catch? They often come with a hidden opportunity cost that savvy business owners should be aware of. Most credit card providers significantly cap points on government payments, sometimes offering as little as 0.5 points per dollar compared to your standard earning rates. For substantial tax payments, this can represent a considerable loss in potential Rewards value over time.

Unlocking greater value through pay.com.au

Here’s where a bit of a point hacking strategy can pay dividends. pay.com.au can reward you with more Reward Points when you pay the ATO, for payments such as BAS, GST and more.

Here are some of the advantages worth considering:

Earn your full credit card points: Unlike direct ATO payments through the Government EasyPay Portal, using pay.com.au ensures you earn complete reward points on every dollar when using your credit card, with earning rates reaching up to 2.25 points per dollar. To see the difference on your Business Credit Card, visit our Credit Card earn rate guide.

Double-dipping on rewards: With pay.com.au, you essentially stack two reward streams:

1. Your regular credit card rewards on the transaction
2. Additional PayRewards that offer flexible redemption options. (Optional, fee applies)

Clear fee structure: While pay.com.au’s processing fees sit slightly higher than direct ATO payments, the rewards equation could potentially work out significantly favourably for those who know how to maximise point values. See here for pricing and processing rates.

Rewards you can actually use: – Earn points on every business payment and redeem them your way. With 11 leading transfer partners (and more coming soon), you can fly Business Class for less, convert points to gift cards, and more with PayRewards. Plus, new partnerships with Thai Airways Royal Orchid Plus, Air Canada’s Aeroplan, and IHG One Rewards give you even more premium travel and hotel options.

Streamlining your payment approach

The benefits extend beyond just points. As a comprehensive payments platform, pay.com.au allows you to keep all your payees in one location with the flexibility to use your preferred payment method, whether that’s credit card, bank transfer or BPAY.

You’ll also gain the ability to leverage your credit card’s interest-free period (typically around 55 days), providing valuable cash flow benefits that can help smooth out your business operations.

Making tax time work harder for your business

Those substantial ATO bills don’t need to be merely an expense – they can be transformed into a strategic opportunity. By earning full credit card points, accessing PayRewards, and managing your cash flow more effectively, you’re essentially extracting maximum value from payments you’d need to make regardless.

The approach means turning necessary business expenses into meaningful rewards that deliver real value back to your business.

Written by Dan Withinshaw

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About the author

Dan is a content marketing specialist at pay.com.au who transforms complex rewards programs into compelling stories. Drawing from his Kiwi roots and global adventures, he brings a unique perspective to finding value in points redemptions. With experience in startups and scale-ups, he helps readers unlock the potential of their rewards. Outside of work, you'll find Dan producing music, mixing on the decks, and immersing himself in Melbourne's sports and music culture.