With the new financial year upon us, people are gathering their information for preparation of their tax returns for 2012. With changes to taxation levels and less availability for making super contributions for those over 50, paying more tax seems to be a reality.
But wait, there may be one way to soften the payment of your tax bill....paying via your credit card which may be earning you frequent flyer points.
There are various Terms and conditions when making a credit card payment to the ATO and there is a card payment fee applies to transactions made using this service. This fee is not subject to goods and services tax (GST) and is equal to the fee the ATO incurs from its banker. Visa/MasterCard incurs a fee of 0.48% and American Express is 1.25%.
You may be eligible to claim a deduction for card payment fees. For more information, refer to the credit card payment fee deductibility guidelines on the ATO website.
Tax payments between $10 and $50,000 will be accepted.
The Government EasyPay service will provide a receipt for both the tax payment and the card payment fee. The details will be displayed as ATO payment and Card payment fee - ATO on the cardholder's statement.
Please refer to the ATO website for making payments either on line or by phone.