Is my math correct for calculating cost of acquiring points (using B2Bpay to pay ATO)?

Credit Cards & Credit Card Programs
1

Hi all,

Just looking for some re-assurance.

I am looking to pay $8000 to the ATO using Amex and B2bPay.

My understanding of B2Bpay is that they charge 2.4% 1.68% after tax deduction.

the cost of using B2bpay would be $134.40.

i would earn 12,080 points

giving a cost per point of 1.1 cents

I am thinking this is good value if I am saving medium term for a Classic reward RTW flight business class.

I hope to hear your thoughts.

2

Assuming you earn 1.5 Qantas point per dollar spent and your after tax deduction % surcharge is correct, your math seems sound.

I never used B2B specifically, but I earn points too for the surcharges from payment services I have used.

1.1cpp is a reasonable acquiring cost (not excessively high). As long as your redemption value exceeds that. RTW business class redemption should yield a pretty decent value.

3