Did you know that paying your payroll tax with a credit card can not only help manage cash flow but also earn you valuable points? In this article, we will show you how to use a credit card for payroll tax payments and maximising rewards points. Get ready to discover “how to pay payroll tax with a credit card and earn points” - turning a necessary business expense into an opportunity for valuable rewards.

Understanding Payroll Tax and Credit Card Points

Payroll tax is a state-based tax imposed on employers based on the wages they pay to their employees. On the other hand, credit card points are rewards earned when making purchases with a credit card, with the number of points earned depending on the specific credit card and its rewards program.

Payroll Tax Basics

Payroll tax is levied on wages paid or payable by an employer to its employees when the total taxable wages of an employer (or group of employers) exceeds a threshold amount. Payroll tax is self-assessed and lodged by the employer. Payroll tax is administered by revenue offices in each individual state or territory.  

Credit Card Points System

Credit card points, also known as credit card reward points, are earned through eligible purchases and can be redeemed for various rewards, such as flights, gift cards, or cashback 

Businesses wanting to maximise points earnings can turn to third-party payment services like RewardPay

Benefits of Paying Payroll Tax with a Credit Card

Paying your payroll tax with a credit card can provide a range of benefits, including improved cash flow, earning rewards points, and a tax deduction for fees.

Improved Cash Flow

When you use a credit card to pay your payroll tax, the money doesn’t leave your bank account immediately, providing an interest-free period that can help manage cash flow for your business.

This advantage allows you to better allocate resources and plan for future expenses, making credit card payments a strategic option for payroll tax payments.

See what one of our customers has to say about RewardPay. 


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Earning Rewards Points

Using a credit card for payroll tax payments can earn you rewards points that can be redeemed for various benefits, such as flights, gift cards, or cashback. 

Tax-Deductible Fees

In some cases, credit card processing fees for payroll tax payments may be tax-deductible, offsetting the cost of using a credit card for these payments. This benefit can help reduce your overall tax liability, making using a credit card for payroll tax payments an even more attractive option for your business.

Choosing the Right Credit Card for Payroll Tax Payments

Given the multitude of credit card options, choosing the most suitable one for payroll tax payments becomes important, especially when considering the impact on your credit card bill and the importance of processing credit card payments efficiently.

Credit Card Types

While deciding on the credit card for payroll tax payments, one should assess Visa, Mastercard, or American Express cards due to their distinct fees and rewards structures.

RewardPay partners with American Express because there’s more in it for you. Of all the cards available in Australia, American Express cards offer the highest points earn rate and most versatile loyalty programme. For example, if you choose an American Express Membership Platinum Card you can earn 2.25 Membership Rewards points for every $1 you spend, and with RewardPay you get 2.25 Membership Rewards points per $1 for ATO payments as well ( normally 1 point per $ if you pay ATO direct).

Reward Programs

Evaluating reward programs offered by credit card providers is another important step in choosing the right credit card for payroll tax payments. The more rewarding the program, the more points you can earn for every dollar spent on payroll tax payments, which can then be redeemed for various benefits.

With RewardPay you can earn your normal full points allocation as with any other Amex card payment rather than half the points if you were paying the ATO directly with your Amex. Traditionally, businesses received reduced points incentives for ATO payments. But with a high points-earning American Express credit card and a RewardPay account, you can watch the points pile up. Our secure, end-to-end encrypted systems ensure PCI Data Security Standard compliance and the process is straightforward - it just takes a couple of clicks. 

Points Caps and Restrictions

pLastly, be aware of points caps and restrictions when selecting a credit card for payroll tax payments to ensure maximum rewards. Some cards may have a limit on the number of points that can be earned in a given month or year, while others may have no points cap, allowing for unlimited accumulation of points.

Third-Party Payment Services 

Third-party payment services like RewardPay can help maximise points earned on payroll tax payments by providing additional benefits and rewards opportunities.

We will delve into the details of these services in the subsequent sections and discuss their contribution to your points earnings.

How much can you earn?

GST and ATO payments are just the start. You can also use the Amex/RewardPay connection to pay for all your other business expenses, including employees’ superannuation, rent, supplier payments, asset purchases and contractors . Some of these expenses aren’t usually payable with a credit card, but RewardPay makes it possible. 

Here’s a quick scenario to explain the added value you get by using RewardPay: 

If your business has $20,000 of business expenses per month, you could earn close to 400,000 Amex points every year. That’s the equivalent to travelling business class from Sydney to Hong Kong and back three times, and there will still be enough for a return business class trip between Sydney and Melbourne. 

Tips for Managing Payroll Tax Payments and Credit Card Points

To wrap up, let’s review some tips for managing payroll tax payments and credit card points effectively. Implementing these strategies can enhance your rewards program and financial planning.

Timely Payments

Ensure timely payments of payroll tax and credit card bills to avoid late fees and maintain a good credit history. Timely payments can ensure consistent points earnings and display responsible financial management to creditors and lenders.

Tracking Points Earnings

Keep track of points as you earn rewards points on payroll tax payments to maximise rewards and monitor progress towards redemption goals.

Keeping a track of your points earnings aids in making informed decisions about your spending and payment strategies, ultimately optimising your rewards program.

Balancing Rewards and Costs

Lastly, balance the rewards and costs of using a credit card for payroll tax payments, considering card payment fee, interest rates, and points earned.

Weighing the benefits against the associated costs can help you fully leverage your credit card rewards program and optimise your financial planning.


In conclusion, paying payroll tax with a credit card can provide numerous benefits, including improved cash flow, earning rewards points, and tax-deductible fees. By choosing the right credit card, maximising points through third-party payment services like RewardPay, and implementing effective management strategies, businesses can turn a necessary expense into an opportunity for valuable rewards. It’s time to take control of your payroll tax payments and make the most of your credit card rewards program.