Can you earn credit card points on tax payments?
If your credit card allows you to earn rewards points on ATO spending, you’ll be able earn rewards points on your tax bill, but only until 30 June 2027. Beyond that date, the ATO will no longer be accepting credit card payments.
Just bear in mind that virtually all personal credit cards, with the exception of Amex cards, do not offer points on ATO spending. It’s much more commonly allowed on business credit cards.
But if your card does allow you to earn points on ATO spend, the benefit is that until 30 June 2027 you’ll be able to earn points without having to pay a card surcharge.
This situation arose following the Reserve Bank of Australia’s surcharge ban that came into effect on 1 October 2026. Hot on the heels of the surcharge ban, the ATO announced it would stop accepting credit card payment from 1 December 2026. But following backlash from small business owners, the Treasurer intervened and effectively forced the ATO to delay the credit card ban until the end of this financial year.
But because surcharges are now banned, there’s a rare window for taxpayers to pay their bill on a credit card surcharge-free, while earning points if their credit card allows it.
The window of opportunity...
Will there be a way to earn points on ATO spending beyond 1 July 2027?
Sean Callery, Editor of Money.com.au
"After the ATO stops allowing credit card payments, it may still be possible to earn rewards points by paying your tax bill via a third-party platform. But there are typically provider fees involved if you want to do this, which puts a major dent in the benefit you ultimately get through the points."
Sean Callery, Editor of Money.com.au
Prior to the surcharge ban, more than a quarter of Australians (27%) planned to increase their credit card spending or bring forward purchases to earn points before the rewards were slashed, according to Money.com.au’s survey of over 1,000 Australians from July 2026.
What to consider when choosing a credit card to pay tax
1. Will you get enough value before the ATO stops accepting cards?
Remember, there’s a very limited window during which the ATO is actually accepting credit card payments. After 30 June 2027, how good or bad your credit card is for earning points on ATO spend will be completely irrelevant. In other words, if you’re shopping for a credit card, make sure it’s suitable for you beyond the tax payment considerations.
2. The earn rate for tax payment
If credit card providers do allow card holders to earn points on ATO spend, then generally a separate lower earn rate applied versus what you get on everyday spending. Check that the government spending earn rate is high enough to make it worth your while.
3. The amount of money owed to the ATO
The number of points you’ll earn will naturally also depend on how much your ATO bill will cost. If it’s a small bill, consider whether the points you’ll earn will make a meaningful difference. If you're expecting a large bill, make sure your credit card limit will be high enough to cover it.
4. The card’s interest rate and fees
Rewards credit cards tend to have higher interest rates than other card options. So, if you're not planning to pay off the card during the interest free-period, any interest paid will wipe the rewards benefit fast. The same goes for high annual or monthly card fees.
Money.com.au’s analysis shows that the average ATO spending earn rate on rewards credit cards is significantly lower than the everyday earn rate. On average, for personal reward credit cards the ATO earn rate is 0.69 points per $1 spent compared to the median everyday rate of 1.31 points. Similarly, business credit cards earn an average of 0.74 points per $1 spent, and have an average everyday rate of 1.08 points.
How to earn points by paying taxes with a credit card
There are three approaches you can take to paying your taxes with the ATO, as listed below. Some credit card providers could require that you use a certain method to pay, otherwise you may be in the habit of paying a particular way.
Pay the ATO directly through myGov
Navigate to the ATO section of your myGov account and follow the pathway until the ‘Payment Options’ section then select the card payment option and enter your credit card’s details.
Pay through the Government’s EasyPay service
Go to the Government’s EasyPay website and make a payment by entering your Payment Reference Number (PRN), the amount you're paying and your credit card details.
Pay through a bill payment service
There are also some services that let people pay bills, including taxes, with a credit card even if the biller doesn’t accept credit card payments. These include, Sniip, B2Bpay and RewardPay which are available for both personal and business use and allow cardholders to earn rewards points at the full everyday rate, rather than the reduced rate for government spending. To use these services, you’ll have to sign up for an account, save your card information and it will typically charge a processing per transaction fee depending on the payment method you use.
Pros and cons of paying tax with a credit card
Pros
- Earning rewards on a large expense that you would have had to pay anyway
- Could count towards an eligible purchase for a sign up bonus
- May help to manage cash flow by giving additional time between paying your tax bill and repaying the card’s balance
Cons
- Interest rates on reward credit cards are high
- It’s not a long term opportunity as the ATO’s credit card ban starts 30 June 2027
- Recent changes to rewards programs have seen points redemption value decrease
Is earning points on tax payments worth it?
For a short period of time, select reward credit card holders can earn points on ATO payments without having to pay surcharges. If you already have a credit card that earns you rewards points on ATO spend, happy days.
However, whether it's worthwhile signing up for a credit card based on its government spending earning potential is a different story and depends on your individual situation.
Previously, card surcharges considerably diminished the value of earning points on ATO spend as you’d be paying an extra 1.45% for payments made using an Amex card, 0.94% on a domestic Mastercard credit card and 0.98% on a domestic Visa credit card.
But in the current window up until 30 June 2027, the lack of a surcharge removes the biggest downside to using a rewards credit card to pay the ATO.
For example, a business owner with a tax bill of $60,000 that has an American Express card earning 1 Membership Rewards Point per dollar on ATO payments would earn 60,000 points from paying their tax bill. Prior to the RBA’s surcharge ban, this payment would’ve incurred a surcharge of 1.45% or approximately $870.
But there are other costs to consider when using a rewards credit card, including high purchase rates, annual fees, as well as over-the-limit and late payment fees, that make weighing up the benefits and the cost essential.
