Paying ATO Bill with Prepaid EFPTOS Cards

schmucky on 17/12/2016 - 11:11

Hi,

I thought I would contribute a little bit of research I did into paying off tax debts while earning credit card points and avoiding the ATO surcharge.

The below post mentioned some Ozbargainers were purchasing (and earning credit card points) and then proceeding to using the Crown EFPTOS card outside of Crown (which was against their T&C and thus some encountered difficulties when they tried again.)

https://www.ozbargain.com.au/node/275659#comment

So I thought if only Crown had an Australia Post as the ATO accepts EFPTOS fee free (up to max of 3k.

Has anyone considered the Highpoint EFPTOS gift cards as their is an Australia Post there? I will give it a shot in the coming months (as there is nothing in the T&C against this) but it would be good to hear if anyone has been successful in purchasing the gift cards and then proceeding to pay their tax bill at Australia Post. There is only a $2 charge for admin (if you collect in-store) and there doesn't appear to be a credit card surcharge on the purchase of the gift card. It also appears you can buy a 1k gift card in store but not online.

http://www.highpoint.com.au/gift-card-packages/gift-cards-1

Looks too good to be true. Happy to hear anyones thoughts.

Financial

Related Stores

Australian Taxation Office
Australian Taxation Office

Comments

  • holdenmg on 17/12/2016 - 11:25

    Where it says "The Highpoint Gift Card is not redeemable for cash and cannot be used for the payment of credit or retailer accounts, nor used at ATM’s to withdraw cash." would be my concern.

    Sure, you aren't redeeming it for Cash, but you are essentially using it as a vehicle to pay an Bill/Account as opposed to buy goods or services at Highpoint (which appears to be their intention).

    I think on examination they would regard its use in the manner you suggest as akin to paying off a Myer Account.

    Maybe buy a Stamp and Pay the Bill while you are there and then you are not using the Card entirely for the Tax Bill? Obviously get an Auspost Receipt and keep it for the Transaction.

  • Baysew on 17/12/2016 - 11:29

    Top work on your R & D.

    Sounds like it should work.

    Purchase Highpoint EFTPOS card using your Rewards Credit Card ( Do they take AMEX?), pay $2 Fee, pay ATO bill at Highpoint Post Office using EFTPOS card.

    You could always buy a stamp as well when paying your TAX.

  • virhlpool on 17/12/2016 - 12:58

    Unless the tax amount is huge, how much money will you save?

    • holdenmg on 17/12/2016 - 13:05
      +3

      That isn't the point(s).

      • virhlpool on 17/12/2016 - 13:06

        What else is the point in using pre-paid EFPTOS card then?

        • holdenmg on 17/12/2016 - 13:08
          +1

          Funding the purchase or acquisition of the EFTPOS card in such a way you can earn points from the funding source card.

        • schmucky on 17/12/2016 - 22:31

          @holdenmg: The ATO charges a surcharge on credit card payments of

          0.54% for VISA and MasterCard payments and 1.45% for American Express payments.

          This method should avoid all of this and also allow you to earn credit card points on the spend.

        • eatwell365 on 18/12/2016 - 09:13

          @schmucky: are payment fees claimable tax deduction?

        • schmucky on 18/12/2016 - 09:17

          @eatwell365: depending on the situation you may be able to

          https://www.ato.gov.au/Business/Income-and-deductions-for-bu…

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