Seems to me the surcharge ban has been really poorly handled by all and sundry.
I donât think it would have been nearly as bad if the Liberals were doing it even if they did nothing differently to Labor. The ATO should not have banned it, if I was Jim I would be pissed off with them if they canât find a 2 percent saving in order to obsurb the cost then they have bigger problems. But the whole structure should be changed but it would be a big change involving not just the local banks but Visa and Mastercard as well.
The solution is that the government should be directing banks to find the savings in their obscenely inflated annual profits.
Combined Big Four: KPMG analysis of the major banks reported a combined profit after tax of $29.8 billion
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I think that would be the best plan but I donât see it happening anytime soon. Under the Liberals I doubt it would be any different if not worse with the Liberals just as much colluded with the banks as Labor are. Just using it to bag Labor when they would do nothing differently.
The problem with that is, as much as they could stand to do that, you know theyâll do? Theyâll see it as a weirdly worded excuse to outsource and offshore everything and cut everything.
Interesting about counterfeit rates being up - the highest since 2018. 20 in 1,000,000 notes are counterfeit (or 1 in 50K)
and where there are places where card payment is the only payment method offered, but they whacked on a surcharge on top of the advertised price. We have laws that said that companies canât whack on GST after the sale price, it has to be inclusive. But businesses were allowed to sneak in this extra charge.
You shouldnât be allowed to pay your tax bill with someone elseâs money.
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Why not? People buy million dollar houses with someone elseâs money. You can put a $50k holiday on a credit card, buy a car or spend $50k fitting out a business. Thatâs literally how credit works. Banks lend you money, assess the risk and you pay it back. Credit makes the economy go round.
And what about small businesses? A business might have a $70,000 tax bill due but still be waiting on $100,000 in unpaid invoices. Using a credit card gives them some breathing room to manage cash flow. Thatâs not irresponsible, itâs how plenty of businesses operate.
And yes, some people deliberately put large expenses on credit cards to earn frequent flyer points. The banks are perfectly happy to offer those incentives.
If the bank is willing to extend the credit, and the taxpayer is willing to accept the borrowing costs, I donât see why the government should be dictating how people finance their tax obligations. Credit is what keeps businesses operating, investing and growing. Thereâs nothing inherently wrong with using it to manage cash flow.
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HMV was once a mighty landmark retailer on Oxford Street in London.
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Oxford Street is being closed this month and turned into a mall
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It is extremely irresponsible to pay a $70,000 tax debt on credit card and only encourages further debt spirals - but as long as the Qantas points are worth it, itâs fine.
Small businesses have to be the biggest whingers in the Australian economy. Wind blowing too heavily? Governmentâs fault.
How is that irresponsible? A business might have $200,000 sitting in the bank earning 5% interest, but choose to put a $70,000 tax bill on a credit card, taking advantage of up to 60 interest-free days while their cash continues earning interest. Thatâs not irresponsible. Thatâs putting money to work.
Using credit strategically to manage cash flow, preserve capital and fund growth is extremely smart business practice. Itâs how businesses operate and build wealth.
And your sarcastic comment about Qantas points? If someone can put a $70,000 bill on their card, collect the points and clear the balance in full, why wouldnât they? Banks actively encourage credit card spending through rewards and interest-free periods. They assess the risk and extend the credit. Thatâs the entire business model.
The method of payment tells you absolutely nothing about someoneâs ability to afford it, youâre presuming it does.
Literally the definition of irresponsible spending but go off.
Not going to keep engaging with ChatGPT either, cheers.
As long as the balance is paid off in full each month how is it irresponsible?
If you have accrued such a significant tax bill in the first place, that alone is irresponsible. Putting it on credit is moronic.
Encouraging it as fiscal policy is just deadshit behaviour from a government with no backbone.
Not necessarily you could have a lot of turn over but customers are slow at paying as others have stated. If the accured points means you can get a free flight upgrade or use it for an employee to attend a conference as long as the balance is paid off in full and you get more rewards out of it then what it costs in annual fees then itâs not irresponsible itâs a smart tool to assist with cash flow etc.
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$70,000 isnât that large, especially for any decent sized retailer by the time you add payroll tax and GST. We have credit cards offering 60 days interest free and frequent flyer points.
by waiting until day 55 to pay our credit card, we get interest on the money, and we get frequent flyer points we use to book business travel. this means we win twice - we not only get interest on the money until we pay the credit company, we also save on flights.
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Plus using credit card is beneficial for cash flow especially for businesses who have costs due upfront and donât receive payment for goods until after the costs were incurred.
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A business can rack up that amount in GST, PAYG etc simply by generating revenue and employing people. Thatâs not irresponsible spending at all.
And using a credit card to pay that bill while keeping cash in the bank earning interest, then clearing the balance before interest kicks in, isnât irresponsible either. Itâs basic cash flow management and leveraging credit purposefully and strategically.
My personal tax bill is not quite $70k but every year I pay my tax bill on card collect points and pay it off 60 days later zero interest.