How to Pay Your Tax Bill by Credit Card Payment

Information verified correct on October 2nd, 2015
Paying your taxes via credit card can be as easy as one, two, three. Know the requirements and fees to see how the system works. Paying your taxes via credit card can be as easy as one, two, three. Know the requirements and fees to see how the system works.

Tax time is always crunch time. Not everyone is organised when it comes to paying their taxes, and many are often putting it off until the very last minute. Then they have to endure long lines, long wait times and other hassles that come with paying your taxes.

The Australian Taxation Office is the Government’s principle tax collection agency. It is part of the Treasurer’s portfolio and aims to help manage taxes that fund services for the country’s citizens.

In February 2009, the ATO offered a service where tax payers can make payments online with the use of their credit card. With the launch of this service, it became more convenient for citizens to pay their dues so long as they have an Internet connection. Conditions do apply.

Compare Credit Cards for Paying Tax bills

Rates last updated October 2nd, 2015
Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee Cash advance rate (p.a.)
American Express Platinum Edge Credit Card
Earn 0.50 point per dollar while you pay your tax bills. Also receive 10,000 Membership Rewards Bonus Points on sign up.
20.74% p.a. 0.99% p.a. for 6 months with 1% balance transfer fee $195 p.a. Go to site More info
American Express Platinum Card
Earn 0.5 reward points per dollar spent while paying tax bills. Enjoy 100,000 Membership Rewards Bonus Points when you spend $1000 on your card.
$1,200 p.a. Go to site More info
American Express Velocity Platinum Card
Take benefit while paying tax bills and earn 0.50 point per dollar. Also receive 50,000 bonus Velocity Rewards points if you spend $500 within the first 3 months.
20.74% p.a. 0.99% p.a. for 6 months with 1% balance transfer fee $349 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.
20.74% p.a. $99 p.a. Go to site More info

Making payments to ATO: what do I need?

Before using the service, you need to know the three requirements for the online payment.

  1. First, taxpayers must have an active and current Visa, MasterCard or American Express card. The service itself is free, but note that charges to your credit card will apply. According to the Australian Tax Office (ATO) website, card payment fees are 0.42% for Visa and MasterCard, while it’s 1.45% for American Express. These fees are the 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.

  2. Second, taxpayers must have the ATO electronic funds transfer (EFT) code. The EFT code is also known as the payment reference number (PRN) and is printed directly above the bar code of the payment slip. It’s important to have this number on hand when paying through credit card.

  3. Lastly, taxpayers need to use the Government EasyPay website or telephone service when transacting. The website is secure and provided by the ATO and the Reserve Bank of Australia using the Optus SmartPay system.

Credit card payments can also be done over the telephone. The service is also provided by the Government EasyPay and is a self-help telephone service. Have your EFT code/PRN and credit card details handy when calling 1300-898-089 to make the payment. Tax payments between $10 up to $50,000 is accepted.

Note that all payments must be received by the Tax Office on or before the deadline. Transactions done beyond the regular office hours or after 6:00 PM Sydney time will be processed on the succeeding business day. The same goes for transactions received during weekends or holidays. These should be taken into consideration when paying especially when it’s close to the deadline. Late payment may be subject to penalty fees.

Keep this in mind
  • A note on Small Business Superannuation Clearing House payments:
    Payments to the clearing house service can only be made by BPAY or electronic funds transfer (EFT).

After the tax bill payment has been made, a receipt containing all the details of the transaction will be issued. It includes the tax payment as well as the card payment fee. These will be displayed as “ATO payment” and the “Card payment fee – ATO” on your card statement.

Tax Deduction

It is also possible to claim the card payment fee as a tax deduction. This is depended on several conditions, of which includes the following: The type of card used (Visa, MasterCard, American Express); the type of liability/tax being paid and the type of amount to be paid (if it’s using a credit account or is paid through debit).

The ATO website lists more details when filing for a tax deduction.

Other Payment Options

The ATO has other options for tax payment.

  • BPAY – BPAY is a third-party service launched in 1997 has been widely adopted throughout the banking sector. It provides a secure, electronic bills-payment system directly from your cheque or savings account using your financial institution’s phone or Internet banking service.
  • Direct credit allows you to transfer payment through online from a cheque or savings account.
  • Direct debit – Payment is automatically deducted from your cheque or savings account.
  • Mail – Payment is made by sending the payment slip with a cheque or money order through the postal system.

Paying from Overseas

The online and telephone payment options are also available to Australian residents who are overseas. Note that you will need an Australian bank account to make the payment from its cheque or savings. You may also want to consider the time difference so as not to have problems when making payment. The rules and conditions still apply.

With these available payment options, combined with early or on-time payment, tax time may be crunch time, but it is not as stressful.

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20 Responses to How to Pay Your Tax Bill by Credit Card Payment

  1. 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.



  2. 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.



  3. 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.


    • Staff | 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.



  4. 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 is a comparison service we are unable to provide financial advice.



  5. 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?


    • 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.



  6. 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.

  7. Default Gravatar
    Anne | July 29, 2013


    Which banks issue reward points for credit card payments to the ATO for BAS, Income Tax etc. payments?

  8. Default Gravatar
    Adam | May 6, 2013


    I wish to make a tax payment via credit card, but the amount is higher than my credit limit.

    Is it possible to pay half the tax amount on credit card, then transfer money back to credit card so i can make the second payment?

    Or do i have the make the tax payment in one payment?

    • Staff
      Jacob | May 7, 2013

      Hi Adam. Just had a chat with the ATO. If you’re using a payment slip, you can keep making payments up till the due date, you don’t have to pay it all in one lump sum. Jacob.

    • Default Gravatar
      Adam | May 7, 2013

      Hi Jacob,

      Thanks so much for your reply, much appreciated.

    • Staff
      Jacob | May 6, 2013

      Hi Adam. I believe it comes down to paying the full amount before the due date. I’m just confirming this with the tax office. I will reply to this message as soon as I know. Jacob.

  9. Default Gravatar
    Henrik | April 25, 2013

    Commonwealth Bank excludes payment of ATO PAYG from counting towards awards points. Are there any banks that will give you awards points if you pay your tax bill with the ATO using their credit card ?

    • Staff
      Jacob | April 26, 2013

      Hi Henrick. Thanks for your question. American Express Membership Rewards points will allow you to earn points when you pay utility bills. You can compare their credit cards here. Jacob.

Credit Cards Comparison

Rates last updated October 2nd, 2015
Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee Cash advance rate (p.a.)
NAB Low Rate Credit Card
Low ongoing interest rate on purchases and balance transfers.
0% p.a. for 12 months (reverts to 13.99% p.a.) 4.99% p.a. for 6 months $59 p.a. 21.74% p.a. Go to site More info
Westpac 55 Day Platinum Card - Exclusive Offer
Exclusive Offer to
No annual fee for the first year (and subsequent years) if you spend over $10,000 per annum. Platinum benefits including a platinum concierge service, overseas travel insurance, extended warranty cover and purchase security cover.
0% p.a. for 12 months (reverts to 19.84% p.a.) 3.99% p.a. for 6 months with 1% balance transfer fee $0 p.a. annual fee for the first year ($90 p.a. thereafter) 21.29% p.a. Go to site More info
HSBC Platinum Credit Card
Earn rewards points plus a balance transfer offer. Access to Platinum benefits including a personal concierge service and VISA Platinum reward program.
19.99% p.a. 0% p.a. for 8 months $0 p.a. 21.99% p.a. Go to site More info
Citi Rewards Credit Card - Classic Card
Get the chance to earn 1.00 points for every dollar you spend on the first three months (up to 20,000 bonus points). Also enjoy a 0% p.a. on balance transfers for 12 months and up to 55 interest-free days on purchases.
20.99% p.a. 0% p.a. for 12 months $0 p.a. annual fee for the first year ($89 p.a. thereafter) 21.74% p.a. Go to site More info

* The credit card offers compared on this page are chosen from a range of credit cards 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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