Credit Cards for ATO Payments

Compare credit cards that earn rewards points when paying the Australian Tax Office.

By   |   Verified by David Boyd   |   Updated 28 May 2024

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Comparing credit cards for ATO payments

NAB Low Rate Card

On website

Balance transfer

28 months at 0% p.a.

Purchase rate

13.49% p.a. ongoing

Annual fee

$0.00 for 1st year

Highlights

  • Experience 0% p.a. on balance transfers for 28 months with a 2% balance transfer fee. Reverting to a variable cash advance rate of 21.74% p.a. after the promotional period.
  • Initial $0 annual card fee for the first year ($59 p.a. thereafter).
  • Receive a response within 60 seconds.

Pros

  • 0% p.a. on balance transfers for 28 months.
  • A variable purchase rate of 13.49% p.a.
  • The waived annual fee for the first year.
  • Additional credit card is free.

Cons

  • There is a 2% balance transfer fee.
  • No rewards program for this card.
  • No insurance coverage.
NAB Qantas Rewards Signature Card

On website

Balance transfer

12 months at 0% p.a.

Purchase rate

20.99% p.a. ongoing

Annual fee

$295.00 for 1st year

Highlights

  • Gain up to 120,000 bonus Qantas Points. Acquire 90,000 bonus points upon spending $3,000 within the initial 60 days from account approval date and an additional 30,000 bonus points upon maintaining your card open for over 12 months. Terms and conditions apply.
  • Benefit from 0% on balance transfers for 12 months with a 3% Balance Transfer Fee.
  • First-year annual fee reduced to $295 p.a. from $395 p.a. (saving you $100).

Pros

  • Complimentary Qantas Frequent Flyer membership fee valued at $99.50.
  • Six complimentary insurances when you make an eligible purchase.
  • Earn 1 Qantas Point per $1 spent on everyday purchases up to $5,000 per statement period then 0.05 pts per $1 spent thereafter (capped at $20,000).

Cons

  • Annual fee of $395 p.a. is quite high.
NAB Low Fee Platinum Card

On website

Balance transfer

12 months at 0% p.a.

Purchase rate

19.74% p.a. ongoing

Annual fee

$90.00 p.a. ongoing

Highlights

  • Access the Platinum Concierge Service available 24/7.
  • Enjoy 12 months at 0% p.a. on balance transfers (a 3% balance transfer fee applies). Reverting to the variable cash advance rate of 21.74% p.a.
  • Access six complimentary insurances when making an eligible purchase.

Pros

  • 12 months at 0% p.a. on balance transfers (3% balance transfer fee applies). Reverts to variable cash advance rate of 21.74% p.a.
  • Low ongoing $90 annual fee.
  • Complimentary insurance including international travel insurance.
  • Access to the 24 /7 NAB Concierge Service.

Cons

  • There's a 3% fee on balance transfers.
  • You can't earn rewards points with this card.
  • Up to 44 days interest-free, which is shorter than the 55 days on many other cards.
American Express Business Explorer Credit Card

On website

Balance transfer

N/A

Purchase rate

23.99% p.a. ongoing

Annual fee

$0.00 for 1st year

Highlights

  • Experience $0 Annual Card Fee (usually $149) in the first year when applying by July 23, 2024, and getting approved for the American Express® Business Explorer Credit Card. T&C’s apply. Exclusive to New American Express Card Members.
  • Benefit from two American Express Lounge passes per year at Sydney and Melbourne airports.
  • Receive Complimentary Travel Insurance when paying for your return trip with your Card.

Pros

  • $0 annual fee on the first year.
  • Earn up to 2 points per $1 spent.
  • No fee for up to 99 employee cards.
  • Up to 55 interest-free days.

Cons

  • Annual fee reverts to $149 after the initial year.
  • There is no balance transfer offer for this card.
  • Cash advances are blocked, which might be inconvenient for some.
American Express Explorer Credit Card

On website

Balance transfer

N/A

Purchase rate

23.99% p.a. ongoing

Annual fee

$395.00 p.a. ongoing

Highlights

  • Obtain 50,000 Bonus Membership Rewards Points upon application approval and spending $4,000 on your new Card within the initial 3 months. T&Cs apply. Exclusive to New Amex Card Members.
  • Enjoy a $400 Travel Credit annually for flights, hotels, and car rentals when booked online using this card.
  • Benefit from complimentary domestic and international travel insurance coverage.

Pros

  • The 50,000 bonus Membership Rewards Points when approved and reach spend requirement within the first 3 months.
  • Receive a $400 travel credit every year.
  • Earn 2 Membership Rewards points per $1 spent on purchases except for government bodies in Australia where you will earn 1 point per $1 spent (uncapped).
  • Get two complimentary entries per year to The Centurion® Lounge.

Cons

  • The $395 p.a. annual fee.
American Express Platinum Edge Credit Card

On website

Balance transfer

N/A

Purchase rate

23.99% p.a. ongoing

Annual fee

$0.00 for 1st year

Highlights

  • No annual fee in the initial year, saving you $195.
  • Accrue 3 Membership Rewards points for every $1 spent at major supermarkets and petrol stations.
  • Access $200 allocated for annual travel expenses, applicable towards eligible flights, hotels, or car rentals when booked through American Express Travel.

Pros

  • $0 annual fee in the first year, saving you $195.
  • Receive $200 to spend on eligible domestic and international flights, hotels, or car hire with American Express Travel.
  • Smartphone Screen Cover for smartphone screen repairs up to $500.

Cons

  • The ongoing purchase rate of 23.99%.
American Express Gold Business Card

On website

Balance transfer

N/A

Purchase rate

N/A

Annual fee

$169.00 p.a. ongoing

Highlights

  • Acquire 75,000 bonus Membership Reward points upon application approval and spending $1,000 on your card within the initial 2 months. Exclusive to New American Express Card Members.
  • Earn up to 1.5 Membership Rewards points for every $1 spent.
  • Experience enhanced flexibility with no pre-set spending limit.
  • Benefit from Travel Insurance covering up to $2.5 million in medical emergency expenses.

Pros

  • Receive 75,000 bonus Membership Reward points when you meet the criteria.
  • Earn up to 1.5 Membership Rewards points for every $1 spent.
  • No cap on how many points you can earn.
  • No pre-set spending limit means more flexibility.
  • Spend with Dell Technologies to receive up to $75 credit until 31 December 2024.
  • Membership Rewards points can be transferred to a number of airlines, giving you options when booking travel.

Cons

  • The $119 fee for every additional card added.
  • Doesn't offer airport lounge access.
  • No access to concierge services.
American Express Platinum Business Card

On website

Balance transfer

N/A

Purchase rate

N/A

Annual fee

$1,750.00 p.a. ongoing

Highlights

  • Obtain 350,000 bonus Membership Rewards points by applying before 25 June 2024, getting approved, and spending $12,000 on your card within the initial 3 months. Exclusive to New American Express Card Members.
  • Earn up to 2.25 pts per $1 spent.
  • Enjoy exclusive Platinum travel, experience, and dining privileges.

Pros

  • The offer of 350,000 bonus Membership Rewards points when you meet the criteria.
  • Earn up to 2.25 pts per $1 spent and 1 point per $1 spent at the ATO.
  • Access to more than 1,400 lounges globally, including The Centurion® Lounge.
  • Gold status match at Marriott Bonvoy, Hilton Honors, and Premium status at Radisson Hotel Group.
  • Get the Amex Experiences App to access information on Platinum benefits, travel offers, events and recommended merchants.

Cons

  • The annual fee of $1,750 p.a.
  • Since this is a charge card, the balance must be cleared every statement.
  • No balance transfer facility.
American Express Qantas Business Rewards Card

On website

Balance transfer

N/A

Purchase rate

23.99% p.a. ongoing

Annual fee

$450.00 p.a. ongoing

Highlights

  • Obtain 170,000 bonus Qantas Points with the American Express Qantas Business Rewards Card when applying by 25 June 2024, getting approved, and spending at least $6,000 within 3 months of approval. Exclusive to new American Express Card Members.
  • Earn 2 Qantas Points per $1 spent on Qantas products and services, up to 1.25 points per $1 spent on everyday spend, and 0.5 Qantas Points per $1 spent on government spend, utilities, and insurance.
  • Once a total of 500,000 Qantas Points is earned in a calendar year, the everyday business earn rate will change from 1.25 to 0.75 Qantas Points per $1 spent. *For Card Members who applied for the Card between July 1, 2023, and January 9, 2024, this change will take effect from July 10, 2024.

Pros

  • Earn 170,000 bonus Qantas Points when you meet the criteria.
  • Two complimentary passes for the Qantas Club lounge every year.
  • A flexible Payment Option is available to spread costs over time for a portion of your balance.
  • Power up your business – Spend with Dell Technologies and get up to $100 credit.

Cons

  • The $450 p.a. annual fee.
  • Balance must be repaid in full each month.
  • No concierge service.
  • Lounge passes are valid for Qantas Club and not the international business lounges.
The Qantas American Express Premium Card

On website

Balance transfer

N/A

Purchase rate

23.99% p.a. ongoing

Annual fee

$249.00 p.a. ongoing

Highlights

  • Obtain 20,000 bonus Qantas Points upon online application approval and spending $3,000 within 3 months. Exclusive to New Amex Card Members.
  • Enjoy 2 complimentary Qantas Club invitations annually (conditions apply).
  • Benefit from complimentary domestic and international travel insurance coverage.

Pros

  • 20,000 bonus Qantas points for signing up and hitting the spending target.
  • Earn points on your everyday spend. Also earns points at a reduced rate on government spend.
  • Give up to 4 of your friends and family a card — at no extra cost — to earn more points.
  • $450 Qantas Travel Credit, which is fairly easy to trigger with your first Qantas purchase each year.
  • Comes with complimentary card purchase cover and travel insurance.

Cons

  • There is an annual fee of $249.
  • The purchase rate is quite high, but can be avoided with responsible use.
  • No balance transfer facility.
NAB Low Fee Credit Card

On website

Balance transfer

12 months at 0% p.a.

Purchase rate

19.74% p.a. ongoing

Annual fee

$30.00 p.a. ongoing

Highlights

  • Receive $200 cashback when you spend $1,500 on purchases within 90 days from account opening.
  • Low $30 p.a. ongoing annual fee.
  • 12 months at 0% p.a. on balance transfers (3% balance transfer fee applies). Reverting to the variable cash advance rate of 21.74% p.a.

Pros

  • The opportunity to get a cashback $200.
  • 0% p.a. on balance transfers for 12 months.
  • Apply for an additional cardholder at no extra cost.

Cons

  • There is a 3% balance transfer fee.
  • Ongoing interest on purchases and cash advances is not low.
  • Doesn't earn rewards.
Qantas American Express Discovery Credit Card

On website

Balance transfer

N/A

Purchase rate

23.99% p.a. ongoing

Annual fee

$0.00 p.a. ongoing

Highlights

  • Acquire 1.75 Qantas Points on eligible Qantas products and services.
  • Earn 0.75 Qantas Point for every $1 spent on Card purchases, except for spending at government bodies in Australia, where you will earn 0.5 Qantas Points per $1 spent.
  • Enjoy no annual card fee.
  • Obtain up to 4 Additional Cards for family members or friends with no extra fee.

Pros

  • Ongoing $0 annual fee, a rarity among rewards credit cards.
  • Earn 0.75 Qantas points per $1 spent and 0.5 Qantas points per $1 for government spend.
  • No cap on the number of points you can earn.
  • Add up to 4 additional cards for family members or friends with no extra fee.
  • Complimentary Card Purchase Cover and Card Refund Cover.

Cons

  • There is a 3% foreign transaction fee.
  • Lacks complimentary travel insurance.
  • There is no access to a concierge service.
NAB Qantas Rewards Premium Credit Card

On website

Balance transfer

12 months at 0% p.a.

Purchase rate

20.99% p.a. ongoing

Annual fee

$150.00 for 1st year

Highlights

  • Receive 70,000 bonus Qantas Points upon spending $2,000 within the initial 60 days.
  • First-year annual fee reduced to $150 p.a. from $250 p.a. (saving $100).
  • Earn 1 Qantas Point per $1.5 spent on everyday purchases up to $3,000 per statement period, and 1 Qantas Point per $3 spent thereafter (capped at $6,000).
  • Enjoy complimentary Qantas Frequent Flyer membership, saving $99.50.

Pros

  • The 70,000 bonus Qantas Points.
  • The discounted annual fee for the first year.
  • Free Qantas Frequent Flyer membership (a saving of $99.50).
  • Comes with a host of complimentary insurances when you make an eligible purchase.
  • Visa Premium Access and NAB Concierge Services 24/7.

Cons

  • Points earning capped at $6,000 spent per statement period.
  • Higher annual fee compared to other Qantas cards.
  • Interest rates are high, which is typical for most rewards-earning cards.

Although it might seem unusual, having a category for suitable credit cards for tax payments is important. Many individuals and businesses need to make payments to the ATO, which charges a fee for using credit cards. This guide will help you minimise those fees and understand how to earn points on tax payments using a credit card.

Many rewards and frequent flyer credit cards exclude ATO payments from earning points or only allow points to be earned at a very low rate (often half the rate for standard purchases or less).

Paying the ATO directly using a credit card

If your credit card allows points to be earned on ATO payments, you can earn rewards and frequent flyer points when paying your ATO bill, whether for personal or business income tax, PAYG, BAS payments, or a HECS debt.

There are two ways to pay the ATO directly with a credit card: EasyPay and through your MyGov account.

EasyPay

The ATO website offers EasyPay, which allows you to pay your tax bill using a credit card. This option is available to all taxpayers, including businesses. You need to provide your EFT (electronic funds transfer) code or PRN (payment reference number) and your credit card details. The minimum payment amount is $10, and the maximum is $20 million. Depending on your card’s policies, you might earn no points, or points at a reduced rate, for these payments. The transaction surcharge is 0.73% for Mastercard, 0.78% for Visa, and 1.45% for American Express.

MyGov

Individuals and sole traders can pay the ATO via MyGov. Log in to your MyGov account, select the ATO option, and follow the prompts to enter your credit card details and payment amount. The same disadvantages apply as with EasyPay – zero points or reduced points earning, plus the credit card surcharges.

Paying the ATO with a credit card and a payment processor

If your credit card does not earn points for ATO payments, you can use a payment processor. These services act as intermediaries: you pay them with your card, and they pay the ATO on your behalf, which earns you points at the full rate. However, there is a fee for this service.

Popular payment processors include RewardPay and B2Bpay, along with others like Pay.com.au, Sniip, and YakPay. Fees vary by service and card type, with higher fees for American Express compared to Mastercard and Visa.

RewardPay

RewardPay is a business-to-business payment service that allows businesses to earn points using an American Express card. Both the payer and payee need an ABN, making it suitable for sole traders and small businesses. RewardPay charges a 2.15% fee (including GST) for transactions up to $20,000, with a lower fee for larger payments. This fee is generally tax-deductible.

The benefits include avoiding the ATO’s surcharge and earning points at the normal transaction rate rather than the reduced government rate.

B2Bpay

B2Bpay also facilitates ATO payments on behalf of businesses. Fees start at 1.2% for standard Visa or Mastercard, 1.55% for premium cards, 2.2% for American Express, and 2.4% for Diners Club. B2Bpay accepts all major credit cards and offers additional Qantas Points (1.0 Qantas Point per $100 paid to the ATO).

Paying the ATO using a credit card and BPAY

Banks usually classify BPAY credit card payments as cash advances, incurring higher interest rates and fees with no points earned. If you choose this method, ensure you are aware of these costs.

Is it worth using credit cards to earn rewards on tax payments?

Evaluate the value of rewards points versus the cost of surcharges. Most reward points are worth around 0.5 cents each for retail vouchers, while frequent flyer points are typically worth at least 1.3 cents each for long-haul flights.

If the surcharge cost exceeds the value of points earned, it may be better to pay via BPAY, bank transfer, or debit card. For B2Bpay, additional Qantas points can offset the surcharge cost.

Ensure your card’s monthly or annual points cap isn’t exceeded by the payment to avoid reduced points earning.

How to pay the ATO and avoid a surcharge

Using a credit card is not compulsory. Cheaper alternatives include online bank transfers, BPAY, or debit cards, all with minimal or no surcharges, but without earning rewards points.

For detailed advice, consult your accountant or tax adviser.

Help choosing a credit card for ATO Payments

Simplify tax season with the perfect credit card for ATO payments - earn rewards while managing your taxes effortlessly.

  • Pros & cons

Pros

Earn points when paying tax

Credit card rewards programs let you earn points when paying taxes, providing an incentive for using your card.

Improve cash flow with your card’s interest-free period

Utilize the interest-free period on your card to pay taxes, improving cash flow by deferring payment without accruing interest.

Avoid fines or interest for late payment

Paying taxes with a credit card ensures immediate processing, helping you avoid fines or interest charges for late payment.

Credit card fees and surcharges may be tax-deductible

Depending on your situation, fees and surcharges from tax payments made with a credit card could be tax-deductible.

Cons

Reduced points earning rate for direct ATO payments

Points earned may be reduced when paying taxes directly to the ATO with a credit card.

Fees for credit card payments can be avoided with other methods

Other payment methods like direct debit or BPAY may avoid credit card processing fees.

Payment processor fees add to costs

Besides credit card fees, payment processor fees can increase the overall cost of using a credit card for tax payments.

Interest charges if the balance isn’t cleared

Failing to clear the balance by the due date can result in interest charges, nullifying potential benefits.