Earning credit card reward points at the Australian Tax Office and other government agencies has long been a challenge for savvy frequent flyers, as banks have gradually reduced the points earned on those transactions.
Add to that the credit card surcharges that many institutions charge (although those are set to disappear from 1 October 2026), and you’ll quickly see why it’s just often not worth pursuing the points when paying off those types of bills.
But one tactic is going through a third-party payment provider. These platforms usually settle your bills via BPAY, offering full reward points when you pay for the service via credit card, in exchange for a small fee.
For business payments, Pay.com.au is worth considering, especially with the vast number of transfer partners that they have. But for your personal payments, there’s Sniip.
American Express Velocity Platinum
- Bonus points
- 50,000 bonus Velocity Points¹
- Annual fee
- $440 p.a.
- Earn
- 1.25 Velocity Points earned per $1 on all eligible spend except for government bodies⁵. 2.25 Velocity Points per $1 spent on selected Virgin Australia purchases⁵. 0.5 Velocity Points per $1 on Government spend⁵
American Express Velocity Platinum
- Bonus Points
- 50,000 bonus Velocity Points¹
- Annual Fee
- $440 p.a.
- Earn
- 1.25 Velocity Points earned per $1 on all eligible spend except for government bodies⁵. 2.25 Velocity Points per $1 spent on selected Virgin Australia purchases⁵. 0.5 Velocity Points per $1 on Government spend⁵
Earn 50,000 Velocity Points¹ when you apply online, are approved, and spend $5,000 on eligible purchases on your new American Express Velocity Platinum Card within the first 3 months. New American Express Card Members only.
What is Sniip?
Sniip is a payment platform that lets you pay personal and household expenses with any credit card, all through one easy app. In March 2023, the company updated its agreement with American Express to offer a lower processing fee of 1.29% for personal transactions (excluding the ATO).
You can pay bills via BPay or with BSB and account number, though the latter method requires verification for security purposes. Whether it’s council rates, a water bill or a tradie’s invoice, Sniip could help you earn full credit card points. The fees for personal and non-ATO Amex payments are:
| Payment method | Fee (inc GST) |
| Bank accounts | 0.00% |
| Debit cards | 0.65% |
| Amex | 1.29% |
| Mastercard credit | 1.50% |
| Visa credit | 1.50% |
| 1.87% | |
| Alipay | 1.87% |
| Australian prepaid cards (excl. international cards) | 0.85% |
| Qantas Pay | 0.85% |
| Crypto.com | 0.85% |
| Visa/Mastercard international cards | 3.00% |
Of that list, Amex probably offers the best bang-for-buck in terms of the points earned vs the fee. However, always do your own calculations to see if it works for you.
How does Sniip work?
Here are the steps to start using Sniip.
- Download the Sniip App from Google Play or the Apple App Store.
- Register for an account or login.
- Under ‘Payment Methods’, ensure you have a valid payment method set up.
- Tap on the blue ‘+’ icon to add a new bill. You can scan it, add the details manually or sync your email account.
- Enter the payment amount and the due date, then tap ‘Add Bill’.
- Confirm all details are correct. If needed, you can set up a payment reminder through the app and add attachments.
- Tap ‘Pay’ to pay now or ‘Schedule’ to schedule the payment for later.
- Once the funds are cleared from your credit card, Sniip will make the BPay payment to your biller, which may take up to 3 working days.
Pay bills and other expenses via BPay, even when credit cards aren’t usually accepted
Sniip utilises a mobile app to scan your bills and make payments. As long as your biller accepts BPay payments, you can use Sniip to pay those invoices with a credit card and earn reward points.
This applies even if the biller doesn’t accept American Express cards, or in extreme examples, any type of credit card at all. That’s because you pay Sniip with your credit card to earn points, and Sniip then pays your biller via BPay or bank transfer to settle your amount owing.
Pay ATO and government agencies to earn points, even when your credit card doesn’t normally permit it
Typically, American Express reduces its points earn on ATO and other government-related transactions down to a low 0.5 Membership Rewards or 1 Qantas/Velocity point per A$1. That’s a big drop given that some cards earn up to 2.25 Membership Reward points per dollar!
Rather than pay the ATO’s 1.45% Amex fee and earn fewer points, Sniip’s proposition is to charge up to a 1.99% + GST fee instead and earn the full potential of your American Express card. Note that since 1 March 2023, all Amex payments to the ATO are charged at Business rates (1.99% + GST or less). That applies to personal ATO payments too.
An example of Sniip’s fees for a personal bill
Let’s say you’re an individual who owes a $5,000 bill to a tradie doing renovations on your place, and want to maximise the points on your American Express Platinum Charge card or your Qantas Premier Platinum Mastercard. They accept payment via the digital invoice for a fee of 1.7% + $0.30.
Here are some scenarios that could occur, taking into account payment fees and the value of points earned, according to our proprietary points calculator.
| Payment fee for this option | Fee paid on the transaction | Points earned (including fee) | Value of points earned | Overall result | ||
| Direct payment to the tradie | Bank transfer | 0% | A$0 | 0 points | n/a | No points earned |
| Qantas Premier Platinum | 1.7% + $0.30 | A$85.3 | 5,085 Qantas Points | A$81.4 | Lose around A$3.9 in value | |
| Amex Platinum | 1.7% + $0.30 | A$85.3 | 11,441 MR points | A$91.5 | Earn around A$6.2 in value | |
| Payment through Sniip | Qantas Premier Platinum | 1.50% | A$75.00 | 5,075 Qantas Points | A$81.2 | Earn around A$6.2 in value |
| Amex Platinum | 1.29% | A$64.50 | 11,394 MR points | A$91.16 | Earn around A$26.6 in value |
Analysis of the results
Qantas Premier Platinum
With the Qantas Premier Platinum, you’d earn 5,085 points directly with the tradie’s online processor with a $81.4 fee. Through Sniip, you’ll earn slightly fewer 5,075 points but also save around $10 in fees, which is worth it overall.
American Express Platinum Card
With the American Express Platinum Card, you could earn 11,441 Membership Rewards points if you pay the tradie’s invoice directly, at a $91.5 fee. There’s a 2:1 conversion rate from Membership Rewards to Velocity or Qantas. That haul of 11,441 MR Points is worth 5,720 Qantas Points, for instance.
But with Sniip, you’ll save over $20 in fees while earning a similar haul of 11,394 Membership Rewards points. That’s thanks to Sniip’s lower Amex rates for personal payments.
Summing up
Sniip can be a good way to earn credit card points on personal bills. Unfortunately, the numbers don;t quite stack up as well for the ATO because if you’re paying via Amex, the higher ‘business’ rates apply.
It’s important to note that our points valuations above are conservative, so you’ll likely be able to redeem the points for a higher value than above. Conversely, if you used the points for a lower-value reward like gift cards, you could effectively ‘lose money’ on the value of your points relative to the fee paid.
With most credit cards offering up to 55 days interest-free on regular payments, it could make sense to funnel some of your larger bills through a service like Sniip to maximise rewards and boost your cash flow.
Disclaimer
Transparency is important to us. Point Hacks has no affiliation with Sniip – this guide is provided for your information. Point Hacks is affiliated with Pay.com.au.
Good luck registering with pay.com.au – absolutely neanderthal registration process. It’s easier to sign up to a SMSF than it is getting registered with them.
Do ATO payments via sniip count towards min spend on new credit card?
Thanks
Brandon, you’ve got your points calculation wrong, mate! 1 Amex point is approximately 0.66 cents.
Taking advantage of Amex’s current 20% cashback offer up to $30 is worth the 1.5% amex fee…obviously don’t pay a big bill. A $150 bill will cost $2.25 but getting $30 back, means a net gain of $27.75. As a once off it’s worth it.
Hi, 1000 Amex points = $5, how did you get to $135 with 11.250 points?
Thanks
@samantha – did you get a response for the question. I have the same doubt.
Just tried to make a payment to a biller and Sniip would not allow payment via Amex, noting that the biller does not accept Amex (which I don’t even think is correct) – this is in stark contrast to what is noted in this article – that is, it shouldn’t matter whether the biller accepts Amex. Disappointing.
Hey Adam, the Sniip FAQs state “Sniip does have the ability to process Amex for bills paid using a BPay Biller code and reference.” If you’re doing that and still having an issue, best to follow up with Sniip directly. Thanks for letting us know about your experiences.
Hi Brandon My AMEX Platinum card rewards me with Velocity Points. Will I still receive the same 1.25 Velocity Points per $ or does this only apply to MR Points? Thanks
Hi Larry, it applies to any Amex points. So in your case, you’d still earn the full 1.25 Velocity Points per $1 spent with Sniip on bills, in exchange for a 1.5% fee.
Hi,
Are the credit card fees tax deductible?
Thanks.
Hi AK, this is a question for your tax advisor. However, generally speaking, payment fees for business expenses could be tax-deductible in certain circumstances.
How does this compare with b2bpay