How to earn credit card reward points on your payroll tax

As an Australian business owner or operator in 2024-2025, you’re probably no stranger to those hefty tax bills from the Australian Taxation Office (ATO). While your annual tax bills can be substantial, remember they’re also a sign of your business’s growth and success.

But what if you could turn these necessary payments into valuable rewards?

With pay.com.au, you can do just that – earn credit card rewards points on your ATO tax bills and potentially transform your business expenses into luxurious travel experiences with programmes like Qantas Business Rewards, Velocity Points, or even KrisFlyer miles.

The challenge with your ATO payments

When you pay the ATO directly with your credit card, you often get minimal rewards.

Most credit card providers cap points on government payments, sometimes offering you as little as 0.5 points per dollar compared to the standard 1.25 points. This significant reduction can result in substantial lost value for you over time.

Pay.com.au addresses this issue by enabling you to earn full points at your card’s standard rate for ATO payments.

This can potentially double your rewards compared to direct payments. As banks increasingly reduce or eliminate rewards for ATO transactions, pay.com.au offers you a solution to maintain these valuable points on your tax expenses.

Benefits of paying your ATO bills with a credit card

• Earn rewards points: Use your points for business class flights, luxury hotel stays, or other valuable rewards that can benefit your business.
• Cash flow management: Many business credit cards offer you up to 55 days interest-free on purchases, which can help you manage temporary cash flow issues.
• Flexibility: Using a credit card for your ATO payments gives you more time to pay off the bill, potentially allowing you to prioritise other business expenses.

How many points can you earn by paying ATO tax bills with a credit card? 

If you’re looking to optimise your credit card rewards, paying your ATO tax bills through pay.com.au offers you an interesting opportunity. This method can potentially yield significantly more points compared to direct ATO payments, which often come with capped or reduced earning rates.

Here’s how it works for you: pay.com.au allows you to earn points at your card’s standard rate when paying tax bills. With the right card, this could mean you earn up to 1.25 points per dollar spent. Let’s break it down with an example:

Imagine you have a $100,000 tax bill and a credit card that earns you 1.25 points per dollar. Paying through pay.com.au could net you 125,000 points. In contrast, paying the same amount directly to the ATO might only earn you 50,000 points due to their typical capped rate of 0.5 points per dollar.

That’s a difference of 75,000 points for you – not an insignificant amount.

To put this into perspective, 83,000 points could get you a return business class flight from Melbourne to Queenstown on Qantas. Or, if you’re planning a trip to the States, 108,400 points could cover a one-way business class ticket from Sydney to Los Angeles.

However, it’s important to consider the full picture. pay.com.au charges fees for their service, which you’ll need to factor into your calculations. It’s worth using a points calculator to determine if the potential rewards outweigh the costs for your specific situation.

Ultimately, this strategy can be a useful tool for you if you’re looking to maximise your rewards on necessary tax payments. As with any financial decision, it’s about weighing the costs and benefits to see if it aligns with your goals and circumstances.

How you can maximise your business rewards 

To get the most out of your business payments, consider these strategies:

1. Choose a high-earning rewards card: Look for cards that offer you the best points-per-dollar ratio. Some cards even allow you to transfer AMEX points to Qantas Points.
2. Opt for a monthly pay.com.au subscription: These regular and premium subscriptions offer lower transaction fees and additional benefits like Points Advice and a Booking Concierge service.
3. Opt-in to earn PayRewards on bank transfers: With the pay.com.au platform, you can earn rewards on all payments made via your linked bank account. This includes paying your BAS by BPAY.
4. Time your payments: If possible, schedule your larger payments when credit card bonus point offers are available. Some programmes even allow you to buy Qantas points or top-up Qantas points to reach your travel goals faster.
5. Explore point hacks: Point hacks are an excellent source for everything points, travel and even credit cards. Researching point hacks with their resources can help you maximise the value of your rewards.
6. Consider different reward programmes: Whether you prefer Qantas Business Rewards, Velocity Points, or KrisFlyer miles, choose the programme that best aligns with your travel goals.

Beyond ATO payments 

Pay.com.au isn’t just for your ATO bills. You can also use the platform to earn rewards on:

• Payments to your contractors and suppliers
• Your equipment and capital goods purchases
• Your rent payments
• Your employee superannuation contributions (pay super with ease)
• Your BAS payments (pay BAS with credit card or pay BAS online)
• And much more

This means you can earn rewards on various business expenses, maximising your points-earning potential. It’s a great way for you to boost your business rewards across all your payments.

How our fees stack up

pay.com.au offers you some of the most competitive fees in the market for processing credit card payments for payroll tax:

• Mastercard: 1% + GST
• VISA: 1.20% + GST
• American Express: 2.10% + GST

Plus there’s an option to add PayRewards Points to every transaction:

• Earn 1 PayRewards Point per $1 with a 1.0% ex GST fee
• Or 2 Points per $1 with a 1.8% ex GST fee.

These rates can be further reduced if you subscribe to their Regular or Premium packages. When compared to other B2B payment options, pay.com.au often emerges as a superior rewards and payments ecosystem for your business.

Is it worth it for your business?

When deciding whether to use pay.com.au for your ATO payments, consider:

• The value of the rewards you’ll earn
• The fees you’ll pay
• The potential cash flow benefits for your business

For many businesses, especially those with high turnover and substantial tax bills, the rewards earned can far outweigh the fees, making it a smart financial decision for you.

Getting started

It’s easy for you to get going with making your business payments such as ATO payments through pay.com.au.

Simply sign up, enter your ABN and a few general pieces of information; add your credit card to the digital wallet; add your payee information and you’re ready to go.

By using pay.com.au, you can turn your necessary tax payments into a rewarding experience for your business. Start maximising your rewards today!

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