Reward cards can be used to make an array of purchases that can make you gain points. The catch? You can gain access to points from eligible purchases or paying off certain bills with your reward card. If you are wondering if you will be able to earn points while paying off your tax bill, here is what you need to know.
Can you gain points from paying your tax bill?
This will depend on your card terms as there are some cards that come with fees and restrictions that will not permit such payments to be made using a reward card. However, this doesn’t mean that this is entirely impossible as there are a few reward cards on the market that allow you to gain points while paying off your bills at the Australian Taxation Office (ATO).
You may not get a strong value for your points
There are a handful of reward cards that can be used to settle your tax bill and other government fees. Before you pull out your card to pay off your bills it is useful to note that you could get a weaker value for each $1 spent. In general, such cards can give you a minimum of 0.5 points for every $1 spent to a maximum of 1 point for each $1 spent. Checking with your reward program can help you weigh whether it will be worth it or not.
How to know if your card gains points from tax payments?
The easiest way is checking with your reward program terms and conditions to see if such benefits are applicable to your card. You can also check the cards earn rate details for such payments on your card. If tax payment and other government fees fall under purchases that are not eligible on the card then that means you won’t be able to use your card to pay off bills and gain points.
Check what is defined as an eligible purchase
Credit cards come with terms that define what an eligible purchase is and what type of purchases can let you get access to points. But keep in mind that not all reward programs are the same, and they won’t have the same definition of what an eligible purchase that gives you access to points. Keep in mind that you could be charged a surcharge fee when carrying out such payments. However, this fee will not be applied if you pay your tax bill through bank transfers or opt to use BPAY
There may be a chance that the points you earn will be weak when using your reward card to earn points or that you could possibly not earn any at all. Therefore, it helps to know what other ways you can gain points. Most cards are created to help you gain access to points through everyday purchases or when you book for flights using your card.