Who wouldn’t want to earn rewards points while paying their Business Activity Statement (BAS)? In this step-by-step guide, we’ll show you how to maximise earning credit card rewards points on BAS payments, making your Australian Tax Office (ATO) payments a bit more rewarding.

Key Takeaways

  • Maximise rewards points and reduce costs on BAS payments by comparing credit cards and understanding fees & rewards.
  • Utilise cash flow management, interest-free periods, & financial flexibility when using credit cards for BAS payments.
  • Follow best practices to maximise points earned while avoiding pitfalls such as cash advance fees & point caps/exclusions.

Maximising Credit Card Rewards Points on BAS Payments

Turning your tax bill into a rewarding experience is achievable and financially savvy when done correctly. This can be done by:

  • Opting for the right credit card
  • Employing payment processors that grant points on government payments
  • Enabling you to earn credit card rewards points on BAS payments

However, not all credit cards offer the same rewards or earn rates when it comes to ATO credit card payments. 

Choosing the Right Credit Card for BAS Payments

You can maximise your rewards points by carefully selecting the most suitable  card for BAS payments. 

RewardPay partners with Amex because Amex points are the most flexible and valuable points around. A favourite Amex points earn card for business owners is the The best American Express Platinum Card. With the Amex Platinum card you can earn 2.25 Membership Rewards points for every $1 you spend, and if you use this card to pay your tax bill with RewardPay then you still get 2.25 Membership Rewards points per $1 for ATO payments, rather than just  1 point per $ if you pay ATO with your Amex direct.

Payment Processors for Earning Points on BAS Payments

You can earn full credit card points on BAS payments with the help of payment processors like RewardPay. 

RewardPay works by acting as an intermediary between your business and whoever you’re paying. RewardPay accepts your credit card payment (with a small processing fee), and then pays the receiving party directly via EFT, usually in just 1-2 business days.

Keep in mind that the cost of RewardPay’s service may be tax deductible, so you could effectively pay as little as 1.61% to use the service.

Once you sign up for RewardPay (remember, it’s free to sign-up and you’re only charged when you actually use the service), you’ll have access to a dashboard that lets you add in suppliers, businesses and anyone else you need to pay.

Sign up for RewardPay here

Advantages of Using Credit Cards for BAS Payments

Several advantages accompany the use of credit cards for BAS payments. One significant benefit is better cash flow management, as making a credit card payment allows you to cover business expenses without having to wait for payment from customers. This can provide financial flexibility and help you manage your cash flow more effectively.

Another advantage is the interest-free periods offered by many credit cards. By taking advantage of these interest-free periods, businesses can delay payment without incurring any interest charges, further improving cash flow management.

Cash Flow Management

The financial health and stability of a business hinges on effective cash flow management. Using credit cards for BAS payments can help you monitor, analyse, and optimise the inflow and outflow of cash, ensuring that you have enough money to cover expenses and debts.

Your business cash flow can receive further assistance from payment processors like RewardPay, which grants access to the credit card interest-free period. This allows you to keep more of your funds in your account for longer and pay your suppliers and other business expenses with ease.

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Interest-Free Periods

Interest-free periods, a valuable feature of credit cards, enable you to make purchases without accruing interest charges, provided the balance is fully paid by the due date. Taking advantage of these periods can help your business save money and improve cash flow management.

To make the most of interest-free periods, ensure you pay off your credit card balance in full by the due date. Additionally, keep track of the due dates for each credit card to make timely payments and fully benefit from the interest-free period.

Calculating the Value of Credit Card Points for BAS Payments

How many points could you earn?

Let’s say you run a small business with $20,000 of business expenses per month. Paired with the right points earning card, you could either earn up to 40,000 frequent flyer points in a single month, or almost 400,000 points annually.

With those earnings, you could travel in business class from Sydney to Hong Kong on three return trips, and have enough points left over for a return business class trip between Sydney and Melbourne also.

In the example above, using the effective cost of 1.61% for RewardPay’s fees, you would’ve spent $3864 to acquire the points, but pulled out over $8,000 of value in flights after also paying the applicable taxes, fees and surcharges when making those reward bookings.

Comparing Fees and Points Earned

In the process of comparing fees and points earned through different credit cards and payment processors for BAS payments, you need to take into account the fees linked to each payment method and the value of the points garnered. In some cases, the points earned may outweigh the fees, making the transaction worthwhile.

Additionally, don’t forget to examine any additional benefits that may be offered by the credit card or payment processor, such as cash back or travel rewards. These can be incredibly valuable and should be factored into your decision-making process.

Best Practices for Maximising Points and Minimising Fees

Consider the following best practices to increase points and reduce fees when making BAS payments with credit cards:

  • Choose a credit card with a low or no cash advance fee, as these fees can quickly add up.
  • Work with a third party payment processor like RewardPay. 
  • Be mindful of points caps and exclusions, as these can limit the number of points you can earn on certain transactions.

By following these best practices, you can make the most of your credit card rewards points while minimising fees.

Making the Most of Your Credit Card Rewards Points

Having earned credit card rewards points on your BAS payments, it’s now time to fully utilise them. One popular way to redeem points is for travel, including flights, hotels, and car rentals. This can be a fantastic way to turn your tax payments into a well-deserved vacation or business trip.

Aside from travel, there are other exciting redemption options for your credit card rewards points. These include gift cards, merchandise, and statement credits. With so many options to choose from, you can find the perfect way to treat yourself or your business using the points you’ve earned.

Redeeming Points for Travel

Redeeming your credit card rewards points for travel can unlock amazing experiences for you and your business. You can use your points to:

  • Book flights directly through the airline’s website
  • Book flights through a third-party travel website
  • Save on airfare
  • Fly business class

Additionally, you can use your points to book hotels and car rentals, ensuring that your entire trip is covered by the rewards points you’ve earned. This can be a fantastic way to earn points and reward yourself for your hard work, making the most of your points.

Other Redemption Options

If travel isn’t your top priority, there are other exciting redemption options for your credit card rewards points. Gift cards are a popular choice, allowing you to shop at your favourite stores or dine at your favourite restaurants without spending a dime. You can easily redeem points for gift cards through the credit card issuer’s website or app.

Another option is to redeem your hard-earned points for merchandise, such as electronics, appliances, or clothing. You can also choose to redeem points for statement credits, which can be applied directly to your credit card balance, helping you save on future purchases. With so many options available, there’s sure to be a redemption option that suits your needs.

Avoiding Common Pitfalls When Earning Points on BAS Payments 

Though accruing credit card rewards points on BAS payments can be beneficial, it’s crucial to stay vigilant about potential drawbacks that could devalue your rewards. By being mindful of cash advance fees, points caps, and exclusions, you can ensure that you’re maximising your rewards while minimising potential risks.

Keeping abreast of the fees and rewards tied to each credit card and payment processor can guide you towards making the optimal decision for your business. By doing your research and following best practices, you can turn your BAS payments into a rewarding experience that benefits both you and your business.

Anyone with an ABN can use RewardPay, which means large companies, SMEs,

Cash Advance Fees

sole traders, contractors, and even family trusts.

Cash advance fees, a type of credit card fees, are charges imposed by credit card issuers when you make a cash advance transaction using your credit card. These fees are typically a percentage of the transaction amount, ranging from 3% to 5%, or a fixed amount, such as $2.50. The fee is added to your cash advance balance and is subject to cash advance interest rate charges.

Points Caps and Exclusions

Point caps and exclusions can limit the number of points you can earn within a specific time period or on certain purchases or transactions. To maximise your rewards points, including any bonus points, on BAS payments, be aware of any points caps or exclusions that may apply to your credit card or payment processor.

Staying updated on points caps and exclusions enables you to:

  • Make strategic decisions concerning the selection of a credit card or payment processor for your BAS payments
  • Maximise your rewards points
  • Ensure that you’re making the most of your credit card rewards program.


In conclusion, earning credit card rewards points on BAS payments can be a rewarding experience if done correctly. By choosing the right credit card, using payment processors that allow you to earn points on government payments, and following best practices to maximise points and minimise fees, you can turn your tax bill into a valuable opportunity. 

With the potential to redeem points for travel, gift cards, merchandise, and statement credits, your BAS payments can help you treat yourself or your business to amazing rewards. Start maximising your credit card rewards points on BAS payments today and unlock a world of possibilities.