How to pay your tax bill by credit card payment

Information verified correct on August 27th, 2016

Making online payment with a credit card

The tips and tricks to pay your tax bill with your credit card

If you know your way around the system and get your figures right, charging this year’s ATO bill to your credit card could be a convenient and potentially rewarding way to fix up your tax. Read on to learn how you can pay your tax bill with your credit card and which cards will offer you the most rewards.

How can I pay my tax bill with my credit card?

If you’re looking to pay your tax bill with your credit card, make sure to have the following handy:

  • A Visa, MasterCard or American Express card
  • Your payment reference number (PRN) or electronic funds transfer (EFT) code. This number can be found above the bar code on your payment slip or debt notice, or retrieved online via myGov.

When paying the ATO with your credit card, a card payment fee applies at 0.42% for Visa and MasterCard, and 1.45% for American Express. This fee is exempt from the goods and service tax or GST, and is equivalent to the fee that the ATO incurs from its banker. You will be informed of the fee and total transaction amounts before finalising your payment.

You can either pay your ATO bill with your credit card online or over the phone.

Pay Online

If your myGov account is linked to the ATO, you can easily pay through myGov:

  1. Log in to your MyGov account.
    mygov-login
  2. Select the ‘Australian Taxation Office’ link.
    mygov-services
  3. Click on the ‘Tax’ column, select ‘Payments’ and then ‘Payment Options’.
  4. Select the card payment option and follow the prompts to complete the payment.

The Government EasyPay website

You can also use the Government EasyPay website, which is a secure online payment service provided by the ATO and the Reserve Bank of Australia.

  1. Make sure you have a secure Internet connection and a compatible web: Windows IE 8 or later, Mozilla Firefox 4 or later, Google Chrome 4 or later.
  2. Select ‘Make a payment’ on the EasyPay website, which will link you to a secure payment page.
    government-easypay-01
  3. Enter your PRN or EFT code, and key in your payment details including your credit card number, expiry and security code, as well as the amount payable.
  4. Take note of the credit card fee, which should ideally be less than the value of the reward points you are earning.
  5. Select ‘continue’ to complete the transaction.

government-easypay-02

Pay by phone

For tax payments between $10 and $50,000, call 1300 898 089 for the Government EasyPay self-help telephone service and follow the prompts.

Do note that all payments must be received by the Tax Office on or before the deadline. Transactions done outside regular office hours on weekends or public holidays, or after 6:00 PM weekdays Sydney time are processed the following business day. Take these into consideration when paying especially if you’re running close to the deadline, because late payments may be penalised with fees.

Why pay my tax bill with my credit card?

Including earning rewards points, building up your credit history and convenience, there are many reasons you might want to pay your tax bill with your credit card.

Compared to using BPAY, direct debit, direct credit or the good old-fashioned cheque, paying your tax bill with your credit card could earn you rewards points for every dollar you spend. Unfortunately, the list can be an ideal way of accumulating a generous amount of frequent flyer points. Unfortunately, the list of banks and credit cards that award points for this transaction has shrunk by far, leaving only a handful of options at this stage. American Express is currently one of the few companies who openly provides information about earning points on tax payments in their card’s terms and conditions.

The perks of using my credit card to pay my tax bill

  • Earn rewards. Depending on the card you use, you might be able to earn rewards points when you use your credit card to pay your tax bill. Unfortunately though, the list of credit cards that let you do this is limited. You can see a full list of the cards that let you earn rewards points on ATO payments here.
    To determine whether a card that earns ATO points is worth it though, consider the surcharge and whether it’ll outweigh the value of the points. For example, using your American Express card for ATO payments will attract a 1.45% fee which could outweigh the benefits of the rewards.
  • Build credit history. Payments like these, if promptly repaid, can help establish a healthy credit history over time, which in turn helps with getting your future credit or loan applications approved. See more ways to improve your credit rating.
  • Ease cash flow. Charging a large lump sum payment like your tax bill to your credit card can help with cash flow, but be careful about incurring interest fees on your account that can bite back later.
  • Earn interest on early tax. On the flipside, the ATO will pay you interest on your tax payment if you pay it more than 14 days before the due date. You are eligible to claim this interest amount back as a credit on your tax return. See the ATO website for more about calculating interest on early payments and overpayments of tax.
  • Claim back credit card fee as a tax deduction. It is also possible in some circumstances to claim the credit card payment fee as a tax deduction. In general, it is deductible in connection with business tax liabilities and not personal income tax liabilities or penalties. Find out more specific details on the ATO website when filing for a tax deduction.

While tax time isn’t the merriest of occasions, being able to get something back while paying your dues may be of comfort. Remember to do your sums before deciding how to pay to make sure that you get the most value from however you decide to pay your tax.

Compare credit cards you can use to pay your tax bill

Rates last updated August 27th, 2016.

American Express Platinum Edge Credit Card - Exclusive Offer

New exclusive offer of 30,000 bonus points if you apply by 31 August 2016.

July 11th, 2016

American Express Platinum Card

Membership Rewards Bonus Points offer updated from 100,000 to 80,000.

August 2nd, 2016

American Express Platinum Business Card

The 100,000 Membership Reward Points offer has been extended until 31 August 2016.

August 2nd, 2016

View latest updates

Jonathan Choi Jonathan
Bonus Points Points per $ spent Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee
American Express Essential Credit Card
Receive a $50 credit on eligible spend and get Smartphone screen insurance combined with a no annual fee for life card. Also enjoy a 0% p.a. balance transfer rate for 12 months.
1 14.99% p.a. 0% p.a. for 12 months with 1% balance transfer fee $0 p.a. Go to site More info
American Express Platinum Edge Credit Card - Exclusive Offer
Receive 30,000 Membership Rewards Bonus Points when you meet the minimum spend requirement. Enjoy 0% p.a. for 12 months on balance transfers and a complimentary Virgin Blue domestic economy return flight every year.
30,000 bonus points VISA/MC: 0 AMEX: 1 20.74% p.a. 0% p.a. for 12 months with 1% balance transfer fee $195 p.a. Go to site More info
American Express Platinum Card
Receive 80,000 Membership Rewards Bonus Points when you meet the minimum spend requirement and earn up to 3 points per dollar spent. Gain access to travel insurance, $300 Platinum Travel Credit every year and access to 800 VIP airport lounges.
80,000 bonus points VISA/MC: 0 AMEX: 1 $1,200 p.a. Go to site More info
American Express Velocity Platinum Card
Enjoy up to 50,000 bonus Velocity Points when you meet the minimum required spend and earn up to 3 rewards points per dollar spent. Also receive a complimentary return flight every year.
50,000 bonus points VISA/MC: 0 AMEX: 1 20.74% p.a. 0% p.a. for 12 months with 1% balance transfer fee $349 p.a. Go to site More info
American Express Qantas Premium Card
Earn as much as 30,000 bonus Qantas Points when you meet the minimum spend requirement. Enjoy frequent flyer benefits including uncapped Qantas Points per $1 spent, complimentary travel insurance and Qantas Club lounge invitations.
30,000 bonus points VISA/MC: 0 AMEX: 1 20.74% p.a. 0% p.a. for 12 months with 1% balance transfer fee $249 p.a. Go to site More info
David Jones American Express Platinum Card
Earn 1 membership point per dollar spent on tax bills. Plus earn up to 4 rewards point per $1 spent on eligible purchases.
40,000 bonus points 1 20.74% p.a. $295 p.a. Go to site More info
American Express Explorer Credit Card
Receive 100,000 Membership Rewards Bonus Points on eligible spend within the first 2 months of Card Membership. Also enjoy a $400 travel voucher and two complimentary airline passes per year.
100,000 bonus points 2 20.74% p.a. 0% p.a. for 12 months with 1% balance transfer fee $395 p.a. Go to site More info
American Express Business Card
While paying tax bills earn 0.5 reward point per dollar. Also earn up to 1 Membership Rewards point per dollar spent on eligible purchases.
VISA/MC: 0 AMEX: 1 $109 p.a. Go to site More info
David Jones American Express
Earn 1 reward point per dollar spent on tax bills. Also earn up to 3 rewards point per $1 spent on eligible purchases.
30,000 bonus points 1 20.74% p.a. $99 p.a. Go to site More info
American Express Platinum Business Card
Better track and manage your business expenses with the American Express Platinum Business Card. Receive 100,000 bonus points and earn 2 points for every dollar spent up to 375,000, reverting to 1 point for every dollar thereafter.
100,000 bonus points VISA/MC: 0 AMEX: 1 $1,500 p.a. Go to site More info
American Express Gold Business Card
Enjoy 24-hour worldwide service plus a great range of tailored expense management solutions designed to help maintain control of your corporate expenses.
10,000 bonus points VISA/MC: 0 AMEX: 1 $169 p.a. Go to site More info
Sponsorship - ANZ Business Black - Business - PE-20180
Receive 50,000 bonus points when you spend $10,000 within the first 3 months and get access to a range of premium rewards and travel benefits.
50,000 bonus points VISA/MC: 1 AMEX: 0 18.99% p.a. $450 p.a. Go to site More info
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28 Responses to How to pay your tax bill by credit card payment

  1. Default Gravatar
    | January 23, 2016

    Hi, can I assume that references towards cards not earning points for ATO payments also apply for land tax payments to OSR?

    • Staff
      Ally | January 25, 2016

      Hi Phil,

      Thanks for your inquiry.

      According to the ATO’s website, there may be tax implications for any investment property, building or renovation for profit, deal in land, or use of a property in running a business. While there’s a great chance that credit cards not earning points for ATO payments include the aforementioned, it would still be best to consult with your credit card issuer directly since terms and conditions may vary per bank/lender.

      I hope this has helped.

      Cheers,
      Ally

  2. Default Gravatar
    danielle | November 24, 2015

    Hi whats is the charge if I pay our BAS my mastercard?

    • Staff
      Ally | November 25, 2015

      Hi Danielle,

      Thanks for your inquiry.

      According to the Australian Tax Office (ATO) website, if you’re planning to make payment of BAS to ATO, the card payment fees are 0.42% for Visa and MasterCard, while it’s 1.45% for American Express. These fees are not subject to the goods and service tax or GST, and is equivalent to the fee the ATO gets from its banker. Before confirming your payment, the website will inform you of the total transaction fees.

      For more information, you may read through the “What else I need to consider” and “Frequently asked questions” portions of this page.

      I also emailed you the link to the ATO’s website where you can find their contact details should you wish to inquire further or receive direct assistance.

      I hope this has helped.

      Cheers,
      Ally

  3. Default Gravatar
    dianne | November 8, 2015

    can I direct credit my payment for a business activity statement and if so can I have the bank account details and what I should put as a reference

    • Staff
      Jonathan | November 9, 2015

      Hi Dianne, thanks for your inquiry!

      To clarify are you asking whether you can direct credit to your credit card account?

      Cheers,

      Jonathan

  4. Default Gravatar
    | October 26, 2015

    Hi,

    Will Jetstar platinum or HSBC platinum credit cards award Qantas FF points when paying ATO tax bill ?
    Regards

    Khanh

    • Staff
      Ally | October 27, 2015

      Hi Khanh,

      Thanks for your inquiry.

      If your utility bill transactions qualify as ‘eligible purchases’ then Jetstar rewards points/ dollars can be earned accordingly. To clarify on this further, kindly refer to the contact details sent to your email.

      As for HSBC, transactions that you process using your credit card to pay any government agencies do not earn any rewards points.

      I hope this answers your question.

      Cheers,
      Ally

  5. Default Gravatar
    Jiuen | September 24, 2015

    Apart from the amex cards listed above where the transaction fee is 1.45% for payment of BAS to ATO, are there any visa or mastercards that will still give you award points for using for payment to ATO? I just got a letter from CBA that I will no longer accrue any award points if I used my master card for the next ATO payment.

    • Staff
      Jonathan | September 25, 2015

      Hi Jiuen, thanks for your inquiry!

      Westpac credit cards also allow points earnings for payments to the ATO.

      Cheers,

      Jonathan

  6. Default Gravatar
    Sue | June 17, 2015

    Are you sure you can get Frequent Flyer Points when making a payment of Notice of Assessment debt. The ANZ bank staff were very confused about whether we would get the points on our ANZ Frequent Flyer black card. I know we have to pay .42 % to use it.

    • Staff
      Jonathan | June 18, 2015

      Hi Sue, thanks for your inquiry!

      The product disclosure statement and terms and conditions only mention that government charges are exempt from earning rewards points. At this point of time the only credit cards that earn reward points for tax payments in Australia are American Express credit cards. As such the ANZ Frequent Flyer Black Credit Card may be eligible for earning points on tax payments/ payments to the ATO. It would be best to escalate your inquiry with ANZ so the proper department can attend to your question.

      Cheers,

      Jonathan

  7. Default Gravatar
    Evan | June 4, 2015

    Hello, quick enquiry as to whether the ANZ Amex Rewards Black card gives you points for ATO payment ? If so how many points ? Currently with Westpac Altitude Black they have reduced to 1.5 points per $1 spent on ATO bill.

    Thanks

    • Staff
      sally.mcmullen@hiveempire.com | June 5, 2015

      Hi Evan,

      Thanks for your question.

      Although ATO payments can accrue rewards points on an American Express card, this is not the case for all cards. Therefore, it may be best to contact ANZ directly to confirm whether you’re eligible to accrue points on ATO payments via their Amex Rewards Black Credit Card.

      Thanks,

      Sally

  8. Default Gravatar
    John | March 4, 2015

    It seems difficult to tell from the ATO website if you can claim the credit card payment fee as a tax deduction (in respect of, say, making a PAYG instalment payment). There is a suggestion that if you do not ‘borrow’ the money you can, ie if you use a debit card. If you cannot claim the fee as a deduction then the reward points earned barely outweigh the fee paid. Has anybody got any advice on whether the fee would be deductible if you credit your credit card prior to making the payment such that you are not ‘borrowing’ from your bank? The ATO officer I spoke to could not help nor could my accountant be definitive. Thanks John

    • Staff
      Jonathan | March 5, 2015

      Hi John, thanks for your inquiry!

      It would be best to seek professional advice from another certified accountant, since finder.com.au is a comparison service we are unable to provide financial advice.

      Cheers,

      Jonathan

  9. Default Gravatar
    PetuniaKW | November 1, 2014

    Which are the current cards that will give reward points for payments to the Tax office and the Land Tax office apart from ones associated with American Express. Westpac is stopping points rewards from 8th November14

    Also, how many points per $ spent?

    Thanks

    • Staff
      Elizabeth | November 4, 2014

      Hi PetuniaKW,

      Thanks for your question.

      You can take a look at this page to learn more about cards that let you earn rewards points for making payments to the tax office.

      Thanks,

      Elizabeth

  10. Default Gravatar
    Terry | November 25, 2013

    Hi. I want to pay my tax approx. $40,000 in total using my Platinum American Express Card. On the ATO website it says the rate is 1.45%. Does this mean I pay the ATO 1.45% plus an AMEX charge or does it mean I pay just the 1.45% to AMEX as my monthly charge. Please clarify my surcharges for using American Express.
    Thanks.
    Terry.

Credit Cards Comparison

Rates last updated August 27th, 2016
Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee
Virgin Australia Velocity Flyer Card - Balance Transfer Offer
Enjoy a 0% p.a. balance transfer offer for 18 months and also earn 2 bonus Velocity Points in the first 3 months on everyday spend.
20.74% p.a. 0% p.a. for 18 months $64 p.a. annual fee for the first year ($129 p.a. thereafter) Go to site More info
ME Bank frank Credit Card
Enjoy a low and consistent interest rate on purchases and cash advances, combined with no annual fee.
9.99% p.a. $0 p.a. Go to site More info
Citi Qantas Signature Credit Card
Earn up to 70,000 bonus Qantas Points on eligible spend, plus enjoy a 0% p.a. for 6 months offer on balance transfers.
20.99% p.a. 0% p.a. for 6 months $99 p.a. annual fee for the first year ($395 p.a. thereafter) Go to site More info
American Express Essential Credit Card
Receive a $50 credit on eligible spend and get Smartphone screen insurance combined with a no annual fee for life card. Also enjoy a 0% p.a. balance transfer rate for 12 months.
14.99% p.a. 0% p.a. for 12 months with 1% balance transfer fee $0 p.a. Go to site More info

* The credit card offers compared on this page are chosen from a range of credit cards CreditCardFinder.com.au has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your own personal financial circumstances when comparing cards.

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