Earning points from ATO overspend

Answered Closed
1
0

Has anyone ever thought of overpaying a sum to the ATO (using a credit card) and then claiming it back as a refund in the tax return as a quick way of earning points?

Any thoughts on this or is it a crazy strategy?

I had to pay several hundred thousand dollars in company tax which ended up getting refunded and now I’m into the points game I’m kicking myself that I didn’t drip feed the payments through credit cards!

Now I’m wondering if the strategy could be deployed to maximise points.

I’ve done something similar on a smaller scale by not claiming health rebates at the point of delivery e.g. dentists and then claiming the refund myself meaning more points… every bit helps!

  • You must to post comments
Great Response
0
0

Yes some people do this. Where else can you ‘buy’ points for 0.42% surcharge? On a 1 point per dollar credit card that’s 0.42c per point.

  • You must to post comments
Great Response
0
0

I have also considered this strategy. For me as an individual taxpayer the costs/risks outweighted the rewards.
An indiviual taxpayer could potentially benefit by over paying their June quarterly tax instalment in July and lodge their tax return immediately after to minimise the period of time the cash is held by the ATO. However the surcharge also applies to the payment and it may raise the attention of the ATO.

If you’re considering this strategy through a company you should run it past your accountant. There may be fringe benefits tax implications or company loan issues.

  • You must to post comments
0
0

Great idea – I’ve never considered it but certainly will now!

  • You must to post comments
0
0

Sounds like more trouble than it’s worth to be honest. I find the Tax Office hard enough to deal with as is and I wouldn’t really want them on my back in case they suspect a tax loophole being exploited…

  • You must to post comments
0
0

That’s a whole new ball game… and I’m impressed by both ideas! (mind starts scheming)

Seems like it could work? And so as to keep the cash earning interest/offsetting perhaps make payments close to the end of the financial year?

  • You must to post comments
0
0

You will still need to pay the surcharge so depending on how you value your points it might not be worth it?

 

  • You must to post comments
Showing 6 results