ATO introduced credit card payment option for tax
debts from January 2016. Now you can pay your tax payments using Visa, MasterCard
and AMEX Card.
Paying your tax debt using your credit card is not
ideal situation for most of us. However, this gives us some relief if you are hard
pressed for tax due date.
ATO charges credit card payment fee. Charges can be
deductible on certain situations.
Claiming a credit card, or charge
card, payment fee as a deduction
When
you can claim a tax deduction
A
credit card payment fee or charge card payment fee will be deductible if:
the fee is
incurred by you as a result of paying a business tax liability (e.g. a
business income tax liability, a goods and services tax liability, a
fringe benefits tax liability or a PAYG withholding payments liability)
using that credit card or charge card,
you are
carrying on a business for the purpose of gaining or producing your
assessable income
the business
tax liability arises in connection with the carrying on of that business.
When
you cannot claim a deduction
A
credit card payment fee or charge card payment fee will not be deductible if:
the fee is
incurred by you as a result of paying your personal income tax liability
using that credit card or charge card and you are a salary and wage earner
or an individual partner in a partnership, or
the fee is
incurred by you as a result of paying a penalty (eg a failure to lodge
penalty) using that credit card or charge card.
JH Business Services & Taxation Accounting | Business Advisory | Taxation Specialist in small to medium business & personal taxation
Norwest Office
Suite 205 29-31 Lexington Drive Bella Vista NSW 2153