ATO (tax office) payments by credit card

[Origin]

I understand the 12month increase BUT why go for 2years PREPAY Health Insurance again?
Where is Mp's link for 18months?

If your income is over a certain level you will no longer get the 30% govt rebate after 30 June (or perhaps a reduced rebate). Hence prepaying puts off the 30% increase as long as possible.

 

[PLANT]

BUPA
Well rang...they are on to us! Government Levy.
Said only 14months in advance, but longer need to speak to supervisor.
Now speaking to supervisor..looking into 2years or longer...seeking 30th June 2014!
Gave me 2years to 31March 2014! Interesting to see the April 2012 price rise was $15
Saved 30%

 

[PLANT]

But if over $130K income then no benefit paying in advance as 30% N/A right?

 

[Origin]

But if over $130K income then no benefit paying in advance as 30% N/A right?

No the theory is that if you prepay before 3o June you still get the 30% rebate so they are the people that benefit the most from the prepayment. If they pay after 30 June you will be paying 30% more!!

 

[drross]

No the theory is that if you prepay before 3o June you still get the 30% rebate so they are the people that benefit the most from the prepayment. If they pay after 30 June you will be paying 30% more!!

Exactly. Make the most of it while you can

 

[amaroo]

But if over $130K income then no benefit paying in advance as 30% N/A right?

It's a little like pre-paying interest on a loan.....you pull the tax benefit into this year rather than the next.

Only in this case you get the tax rebate benefit for a period of 12, 18, 24 months (depending on the fund) even though Julia has "broken another election promise" by changing this critical initiative. Get a long enough pre-paid period and odds are you will never loss the rebate Hi Ho, Hi Ho, it's off to an election we go.........Bing, Bong, Bang - New Government

 

[medhead]

Well we have just returned from our first Wayne Swan rewards program flights.2 J return BNE-SIN all from MR points from paying my tax.Love it.

Sounds like the Keating Surfing Scholarship I was on.

V.Jealous from the sidelines as a PAYG.
Didnt know the trick about the Health Funds and will definitely be paying up front for that now

Hypothetically, if you assess that you will have a tax liability beyond the PAYG amount you are able (and allowed) to make advanced tax payments to the ATO in readiness for the big tax liability. If that tax liability doesn't eventuate the ATO can't really complain that one was wrong in their assessment of their future (unrealised) income.


Sent from the Throne

 

[Stephen65]

I understand the 12month increase BUT why go for 2years PREPAY Health Insurance again?
Where is Mp's link for 18months?

1. Prepayments come with the full 30% rebate. If you are a high income earner and pay for health insurance after 1 July you will not get that rebate. So prepaying is a way of getting 30% off future payments. Basically you keep Labor's hand out of your wallet for another year or two.

2. I don't know if it's on the MP website but when I rang up I could barely get the word "prepay" out of my mouth before the call centre agent was telling me that MP would accept prepayments up to 31 December 2013.

 

[scheps]

have you guys come across a tax bill where they specifically said you can not pay by credit card?

 

[drross]

have you guys come across a tax bill where they specifically said you can not pay by credit card?

No not yet. And hopefully never.

 

[trippin_the_rift]

1. Prepayment come with the full 30% rebate. If you are a high income earner and pay for health insurance after 1 July you will not get that rebate. So prepaying is a way of getting 30% off future payments. Basically you keep Labor's hand out of your wallet for another year or two.

Just prepaid mine til December 31, 2013. Very easy.

 

[scheps]

No not yet. And hopefully never.

My brother just did, and that is the first i have heard of it.....

 

[Duffa]

Is this the ultimate compliment?
I have just received an email from my accountant asking me how to use a credit card to maximise points/value on tax/BAS payments!
So I sent him a detailed reply about Visa and 0.48% and Amex and 1.25%, and which card was best etc etc

 

[oz_mark]

My brother just did, and that is the first i have heard of it.....

Some of the stationery says that credit cards can't be used, but I am not aware of anyone that's actually had problems.

 

[sumthinfornuthin]

If you have a read of the stationery is says " Credit cards cannot be paid at ATO offices..."

 

[Origin]

It's a little like pre-paying interest on a loan.....you pull the tax benefit into this year rather than the next.

t

It is better than prepaying interest because this is not just timing benefit, it is an absolute saving that will not come back to bite you if you don't prepay in the following year.

 

[amaroo]

Another that has contributed to what should be a record June result for MBP & other funds Talking to the lady that assisted me - it sounds like they have employed anyone with a pulse that can answer a phone! At least till the 23rd June.

FWIW the deadline for MBP is the 23rd June. Unfortunately, you can only pre-pay (MBP) till 31st Dec 2013......All things being equal, we will have a new Government by then - wonder how long it's going to take them to repeal 5+ years of mistakes Lets hope this one gets priority OPUP, in what will be very long list

Now to see if the figure I just paid is correct

 

[cove]

Gee Amaroo, Wayne just gave you a window of opportunity to help yourself. Spend your 30% tax saving wisely as it currently is a one off!

 

[adrian]

Can anyone with HCF confirm how far in advance they have been allowed to prepay. I have called them twice now, and on both occasions I was told 13 months - i.e. to 31 July 2013.

I thought I remembered reading somewhere in this thread that they got 2 years out of HCF, but I have gone back maybe 100 posts or so, but can't find that post... also, I did try to search this thread, but "hcf" was too short a search term....

Thanks is advance.

 

[Stephen65]

I thought I remembered reading somewhere in this thread that they got 2 years out of HCF, but I have gone back maybe 100 posts or so, but can't find that post... also, I did try to search this thread, but "hcf" was too short a search term....

That was me who mentioned HCF but this is the story: I attended a meeting given by a financial adviser about end of year tax strategies and during that meeting the subject of prepaying health insurance premiums came up and how long the various funds would allow. During that meeting someone mentioned that they were a HCF member and that their fund had allowed a 2 year prepayment. So it's second-hand and not confirmable but certainly worth asking for.