How to earn points when paying your BAS with a credit card

Lodging business activity statements (BAS) with the Australian Tax Office (ATO) is not a task many business owners look forward to. However, pay.com.au can help make it a more rewarding experience and help you and your business earn a bucket load of rewards points by paying your BAS with a credit card.

All Australian businesses registered for GST need to lodge business activity statements with the Australian Taxation Office regularly, most doing so quarterly. Business activity statements help businesses report and pay for GST, pay-as-you-go (PAYG) withholding tax, PAYG instalments and other taxes.

With pay.com.au, you can pay your BAS using a points-earning credit card, even as many banks and credit card providers place caps on the points you can earn for government payments.

By using pay.com.au, you can still earn rewards on these payments, even with those caps in place.

The platform offers low fees and a seamless experience, allowing you to handle your business payments efficiently while maximising your reward points. Your next holiday or business-class upgrade might be closer than you think!

Don’t lose credit card rewards on your BAS payments

When you pay your BAS directly to the ATO with your credit card, you often get minimal rewards.

Most credit card providers cap points on government payments, sometimes offering you as little as 0.5 points per dollar compared to the standard 1.25 points. This significant reduction can result in substantial lost value for you over time.

Pay.com.au addresses this issue by enabling you to earn full points at your card’s standard rate for BAS payments.

This can potentially double your rewards compared to direct payments. As banks increasingly reduce or eliminate rewards for ATO transactions, pay.com.au offers you a solution to maintain these valuable points on your BAS expenses.

Benefits of paying your BAS with a credit card

• Earn rewards points: Large payments often mean big rewards. Use your points for business-class flights, luxury hotel stays, unique experiences and much more.
• Cash flow management: Many business credit cards offer you up to 55 days interest-free on purchases, which can help you manage temporary cash flow issues.
• Flexibility: Using a credit card for your BAS payments gives you more time to pay off the bill, potentially allowing you to prioritise other business expenses.

How many points can you earn by paying BAS with a credit card?

If you’re looking to optimise your credit card rewards, paying your BAS through pay.com.au offers you an interesting opportunity. This method can potentially yield significantly more points compared to direct ATO payments, which often come with capped or reduced earning rates.

Here’s how it works for you: pay.com.au allows you to earn points at your card’s standard rate when paying BAS. With the right card, this could mean you earn up to 1.25 points per dollar spent.

Let’s break it down with an example:

Imagine you have a $98,400 BAS payment and a credit card that earns you 1.25 points per dollar. Paying through pay.com.au could net you 123,000 points. In contrast, paying the same amount directly to the ATO might only earn you 49,200 points due to their typical capped rate of 0.5 points per dollar.

That’s a difference of 73,800 points for you – not an insignificant amount.

To put this into perspective, 134,000 Velocity Points could get you a return business class flight from Melbourne to Singapore. Or, if you’re planning a domestic trip, it could cover multiple return flights in business class between major Australian cities.

However, it’s important to consider the full picture. pay.com.au charges small fees for their service, which you’ll need to factor into your calculations. It’s worth using a points calculator to determine if the potential rewards outweigh the costs for your specific situation.

Ultimately, this strategy can be a useful tool for you if you’re looking to maximise your rewards on necessary BAS payments. As with any financial decision, it’s about weighing the costs and benefits to see if it aligns with your goals and circumstances.

How you can maximise your business rewards

To get the most out of your business payments, consider these strategies:

1. Choose a high-earning rewards card: Look for cards that offer you the best points-per-dollar ratio.
   Some cards even allow you to transfer AMEX points to Qantas Points.
2. Opt for a monthly pay.com.au subscription: These regular and premium subscriptions offer lower transaction fees and inclusions such as complimentary PayTravel inclusions.
3. Opt-in to earn PayRewards on bank transfers: With the pay.com.au platform, you can earn rewards on all payments made via your linked bank account.
4. Time your payments: If possible, schedule your larger payments when credit card bonus point offers are available. Some airlines even allow you to buy points or top-up points to reach your travel goals faster.
5. Explore point hacks: Australia has a vibrant community of points enthusiasts. Researching point hacks can help you maximise the value of your rewards.
6. Consider different reward programs: Whether you prefer Qantas Business Rewards, KrisFlyer miles, or something else, choose the program that best aligns with your travel goals.

Beyond BAS payments

Pay.com.au isn’t just for paying BAS with a credit card. You can also use the platform to earn rewards on:

• Payments to your contractors and suppliers
• Your equipment and capital goods purchases
• Your rent payments
• Your employee superannuation contributions (pay super with ease)
• Your other ATO payments (pay ATO with credit card or pay ATO online)

This means you can earn rewards on various business expenses, maximising your points-earning potential. It’s a great way for you to boost your business rewards across all your payments.

How our fees stack up

pay.com.au offers you some of the most competitive fees in the market for processing credit card payments for BAS:

• Mastercard: 1% + GST
• VISA: 1.20% + GST
• American Express: 2.10% + GST

These rates can be further reduced if you subscribe to their Regular or Premium packages. When compared to other B2B payment options, pay.com.au often emerges as a superior rewards and payments ecosystem for your business.

Is using pay.com.au worth it for your business?

When deciding whether to use pay.com.au for when you need to pay your BAS with a credit card, consider:

• The value of the rewards you’ll earn
• The fees you’ll pay
• The potential cash flow benefits for your business

For many businesses, especially those with high turnover and substantial BAS payments, the rewards earned can far outweigh the fees, making it a smart financial decision for you.

Getting started

It’s easy for you to get going with pay.com.au. And you’ll be earning full reward points when paying your BAS with a credit card.

Simply sign up, enter your ABN and a few general pieces of information; add your credit card to the digital wallet; add your payee information and you’re ready to go.

By using pay.com.au, you can turn your necessary BAS payments into a rewarding experience for your business. Start maximising your rewards today!

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