Why the points maths works for businesses

>Why the points maths works for businesses


New to the credit card points earning game? 

Don’t worry, we’re here to help with this easy guide on how pay.com.au can help you earn maximum points and get the most value from them for a minimum cost to your business.

We’ll show you examples of the value you can earn from points, why using us to make payments to the ATO is a better option and what to weigh up when choosing a business credit card.

Rewarding yourself with a First Class or Business Class flight overseas is easier to achieve than you might think. 

Example  1 – James’ trip to London

First, we’ll take a look at James, who runs a medium-sized manufacturing company and uses pay.com.au to pay his ATO bills, business expenses, contactors and everyday invoices. 

James spends $364,000 in a year on everyday expenses with pay.com.au using an American Express Qantas Business Rewards Card, which earns 1.25 points per dollar spent.

James wants to splash out and travel from Brisbane to London in First Class on Emirates with his wife Jane to celebrate their 20th wedding anniversary at the end of the year.

Below is a table that clearly shows the enormous value that James receives for using pay.com.au.

As you can see, for $5998.40 in fees, James has managed to score himself an amazing $24,000 worth of flights.

That is less than the average cost of two return flights in Premium Economy.

Example 2 – Linda’s trip to Perth

Linda runs a small cafe in Sydney and spends a touch under $220,000 a year on ATO bills, food and supplies and other everyday invoices with pay.com.au

Linda has a NAB Qantas Business Signature VISA Card, which earns Qantas points at a rate of 0.66 per dollar spent.

Linda wants to take her family of four to Perth over the school holidays to visit relatives in Western Australia. 

Flight prices from Sydney to Perth are particularly expensive during the school holiday period, which means Linda can gain great value from using Qantas points for the trip:

As you can see, Linda has scored herself $3,400 worth of flights for just $1706 – a saving of about 50 percent. 

Example 3 – The Big Spender

John runs a medium-sized electrical company and spends $1 million annually on various expenses using an American Express Platinum Business card.

The card has no points cap, which means John earns points at a rate of 1.125 points per dollar spent through Pay.com.au.

Here’s what John’s yearly costs and points earned look like:

The fees James has paid might seem sizable, but if he uses his points right he could reap many more times those fees in value. 

We value a Qantas point as being worth at least 1.9 cents, but often they can be worth a lot more as you can see in the below table. 

Can I earn credit card rewards points directly with the ATO? 

Yes, businesses are able to make payments directly to the Australian Taxation Office (ATO) using a credit card. 

However, using pay.com.au to facilitate those payments is normally far more rewarding.

Banks and credit card providers in Australia have increasingly moved away from awarding points for spend with government bodies, including the ATO.

Those cards that do still award points for such payments often do so at a significantly reduced rate. 

For example, the American Express Platinum Business Card earns 1.125 Qantas points per dollar spent on everyday spend, including payments through Pay.com.au

However, it only offers 0.5 points per dollar spent on payments to government bodies, including the ATO. 

Here’s how paying the ATO directly compares to using Pay.com.au, if you used an American Express Platinum Business Card to make $100,000 of payments:


Using pay.com.au to make payments to the ATO can often earn you at least twice as many rewards points – all for a very similar cost.

How to pick the right business credit card

pay.com.au accepts all three major Australian credit card brands – American Express, VISA and Mastercard. 

However, it’s worth noting that cards have different earn rates and we also charge different transaction fees on each of the three brands. 

Our cheapest transaction rates are on Mastercard, starting at just 0.80% + GST  on our Premium account. 

On Visa, our rate starts at 1% + GST  and on American Express it is 1.90% + GST (1.41% after tax). 

Mastercard will cost less than half the transaction fees of an American Express, but you might also earn less than half the points. 

Here’s how three popular cards stack up when it comes to earning Qantas Frequent Flyer points using pay.com.au


As you can see, you will earn a lot more points using the American Express card, but you will also pay more in transaction fees. 

However, given we put a value of at least 1.9 cents on a Qantas Frequent Flyer point, all three cards still pass the value test. 

It is also worth noting that some Mastercard and VISA cards do have a cap on points earning ability per month. 

For example, the ANZ Black Business VISA card earns 0.75 Velocity points per dollar on the first $10,000 per statement period and then only 0.5 Velocity points on purchases above $10,000 per statement period. 

If you are a high spending business, it might be better for you to use a card without a cap points cap.

Summing Up

pay.com.au can help businesses big and small earn plenty of points and gain plenty of value from them for travel. 

While you will pay fees for using pay.com.au as opposed to paying some business invoices directly via direct deposit, these fees can be covered multiple times over by the value you can receive from your credit card rewards points for flight redemptions.   

By using a credit card to make these payments, you will also benefit from up to 55 interest free days on these payments.

On many business cards, you will also earn far more points by making payments to the ATO through Pay.com.au than you would using that same card to pay the ATO directly. 

Remember that our Premium account subscribers can also access expert Points Advice and a Booking Concierge to help you from start to finish in your points-earning journey.