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dgc004(Dynamo)Dynamo
9 May 2024

Hello,


My question is in regards to rewards program credit cards/bank accounts, where the business recevives more points for paying the ATO with this account.


I am assuming if the points are used for personal use - it becomes a FBT issue?


If the business uses the points to buy anything work related - the deduction is denied as there was no money spent?


Is my understanding correct?

3,951 views
1 replies
3,951 views
1 replies

Most helpful response

Most helpful replyATO Certified Response

CaroATO(Community Support)Community Support
ATO Certified Response15 May 2024

Hi @dgc004,


  1. Sure does! Because the card is owned by an employer and used for business, the points provided to the employee attract FBT.
  2. Spot on! Points reduce the cost of the goods to $0.

All replies

Most helpful replyATO Certified Response

CaroATO(Community Support)Community Support
ATO Certified Response15 May 2024

Hi @dgc004,


  1. Sure does! Because the card is owned by an employer and used for business, the points provided to the employee attract FBT.
  2. Spot on! Points reduce the cost of the goods to $0.

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Business Credit Card Rewards Points | ATO Community