ATO Scrapped Debit Card Surcharge

By: MAD Wealth
January 27 2025
MAD Wealth

How Can You Save Money with the ATO’s No Debit Card Fee Policy?

Starting 1 January 2025, the ATO no surcharge debit cards policy is here to make paying taxes just a little less painful. Forget those pesky payment fees – now you can settle up with your debit card or even prepaid gift cards, like Visa or Mastercard, without the extra charges.

And the cherry on top?

You could score some sweet rewards points while you’re at it.

Let’s unpack how you can cash in (figuratively speaking) on this new change.

ATO No Surcharge Debit Cards Featured Image

What’s the Deal?

The ATO has scrapped payment fees for Australian debit cards, including prepaid Visa and Mastercard gift cards. You can pick up these prepaid cards at your local supermarket, often with bonus Flybuys or Everyday Rewards points up for grabs.

So not only can you avoid fees, but you might actually earn something while paying your taxes. Not bad, right?

Here’s everything you need to know from the ATO.

Why This Matters

Here’s why this change is worth celebrating:

  • No More Extra Costs: Paying the ATO with a debit card used to come with a little sting in the form of fees. Not anymore!
  • Get Rewarded for Paying Taxes: Prepaid cards often come with juicy rewards points, giving you something back for your tax dollars.

How to Make the Most of It

  1. Hunt for Promotions
    Prepaid cards often have bonus points deals. Keep an eye out for these at supermarkets, especially during Flybuys or Everyday Rewards campaigns. Sometimes, the purchase fee is even waived or discounted, giving you more bang for your buck. This guide from Point Hacks has some great insights on earning points with gift cards.
  2. Double Your Rewards
    Pay for prepaid cards with your rewards credit card. You’ll earn points on the card purchase and again when you use the prepaid card for ATO payments. Double the rewards = double the win.
  3. Plan Ahead
    Stock up on prepaid cards during promotions and use them strategically throughout the year for your tax payments.

Things to Watch Out For

  • Purchase Fees: While some prepaid cards have small purchase fees, bonus points can often outweigh the cost.
  • Expiry Dates: Prepaid cards don’t last forever, so use them before they expire.
  • Stick to the Amount You Need: Avoid loading up on cards you don’t plan to use – refunds can be tricky.

Why It’s Worth Your Time

Let’s face it – paying taxes isn’t exactly fun. But the ATO’s no debit card fee policy turns it into an opportunity to save a little and maybe even earn something back. Whether you’re running a business or managing personal finances, this update is worth taking advantage of.

So, go ahead, grab those prepaid cards, score your rewards, and make tax time work for you. Who says paying taxes can’t come with perks?

For more enquiries or questions about how this policy can work for you, don’t hesitate to contact us. We’re here to help you make smart financial decisions!

Disclaimer

The information in this article is for general informational purposes only and is not intended as financial advice. Please consult with a qualified professional for advice specific to your situation. By using this site, you agree to our Terms of Use.