Citibank Prestige Card Starting Now (0.95% Payall Fees), What Is The Net Outcome for ATO Payments?

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  payless69 on 09/05/2024 - 11:43

  grabs popcorn.

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  bk1973 on 09/05/2024 - 11:47

  +4

  10K points can be turned into a few things.

  Option 1: 10k Citi = 10K flybuys = $50 off Coles shop. So by your example, spend $95 for $50 savings on Coles. You also get a little bit of interest on the 10k if you pay it near the ATO due date and your Citi payment is due X days later. 1 months interest on 10k is about $45 at 5.5% (ING account), but that interest will be taxed. The interest earned would depend upon how your ATO due date and Citi payment dates align.

  Option 2: 10k Citi = 5000 Velocity points. Going rate on OzB is about 1.4 cents/point, so that's about $70. Keep in mind that this 1.4 cents/point includes "risk", so to oneself, the value could be higher than that depending upon what reward flights are booked. Sometimes, there are periods where a transfer incurs a 15% or 20% bonus (currently, there's a 15% one). At 15% bonus, that $70 then becomes $80.50, so not too far from the $95. Also, you'll get the interest boost that I mentioned above too, so that could push it above $95 (but not significantly above it).

  In your situation, the real advantage is the signup bonus. You can reach the 10k spending through PayAll (at least, it was that way for me in 2023, so it's likely still that way).

  • 

    CharlesSmash on 09/05/2024 - 12:52

    Thanks for this comprehensive answer, very helpful

    • 

      alakar on 02/06/2024 - 21:02

      @CharlesSmash hey mate. Did you know whether that counted towards your minimum spend limit criteria?? Thanks!

      • 

        CharlesSmash on 11/07/2024 - 17:01

        I'll check and let you know

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  SmiTTy on 09/05/2024 - 11:51

  +1

  Don't forget, if u didn't use payall and just paid using cc you'd probably be slugged with some sort of charge. So you also need to take they into consideration (ie real cost to pay via payall is $95 less the cc fee you would incur )

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  Hargain Bunter on 09/05/2024 - 12:03

  +3

  Premier card can transfer Reward points to Flybuys at 1:1. 2000 Flybuys points buys $10 (Flybuys Dollars).

  So using this method 10,000 points is only worth $50. Each point is worth half a cent. Any fees more than 0.5% cancel out the benefits.

  There may be better ways to use the points but this is one of the more straight forward methods.

  I transferred all of my Citi points to Flybuys dollars, but won’t continue using PayAll once my existing transfers expire and the fees start coming in.

  Edit: Whoops, too slow, others have covered it above.

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  CharlesSmash on 09/05/2024 - 12:52

  Thanks I really appreciate everyone's responses.
  So it seems straightforward that spending on these is a loss (even at ATO's direct fee of 0.72% for using an Australian Mastercard credit card: https://www.ato.gov.au/individuals-and-families/paying-the-a…

  However the incentive is the 275,000 bonus points which is worth $1,375 according to the above.

  • 

    leiiv on 10/05/2024 - 00:57

    It depends if direct payment to ATO is not excluded in getting the normal and bonus points. Have you checked that?
    What's the earn rate for prestige card? Is it also the same with premier at 1 point per $1 spent?

  • 

    shattered on 17/05/2024 - 17:55

    As @leiiv said, I believe direct transactions paying tax to ATO does not count towards eligible transaction, it's listed under their eligible transaction fine print.
    But pay all should be fine given the main page explicitly says "including big ticket items or ones that you couldn’t earn on before"

  • 

    daft009 on 11/07/2024 - 21:03

    Check with your accountant. You might be able to claim the 0.95% as a deduction as you're running a business

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  cashless on 09/05/2024 - 14:51

  +1

  OP, you might want to check out this very useful guide put together by an OzBargainer I believe