• Claiming a credit card, or charge card, payment fee as a deduction

    When you can claim a tax deduction

    A credit card payment fee or charge card payment fee will be deductible if:

    • the fee is incurred by you as a result of paying a business tax liability (e.g. a business income tax liability, a goods and services tax liability, a fringe benefits tax liability or a PAYG withholding payments liability) using that credit card or charge card,
    • you are carrying on a business for the purpose of gaining or producing your assessable income
    • the business tax liability arises in connection with the carrying on of that business.

    When you cannot claim a deduction

    A credit card payment fee or charge card payment fee will not be deductible if:

    • the fee is incurred by you as a result of paying your personal income tax liability using that credit card or charge card and you are a salary and wage earner or an individual partner in a partnership, or
    • the fee is incurred by you as a result of paying a penalty (eg a failure to lodge penalty) using that credit card or charge card.

    See also:

    What next?

    If you feel that our advice and guidance does not fully cover your circumstances, or you are unsure how it applies to you, seek professional advice or request a private binding ruling. How to apply for a private ruling

      Last modified: 06 Jul 2016QC 23373