Turning Business Payments into Rewards
Turning Business Payments into Rewards: A Close Look at Pay.com.au and Fringe Benefits Tax
For many Australian business owners, maximising every dollar spent is a priority. This is where platforms like Pay.com.au come into play. Pay.com.au (often just called Pay) is a business payment solution that enables businesses to pay bills, taxes, suppliers, rent, salaries and more — all while earning reward points that can be redeemed for travel, gift cards and other perks.
What is Pay.com.au and How Does It Work?
Pay.com.au is a streamlined payments platform that allows Australian businesses to settle virtually any business expense — including payments that traditionally don’t earn credit card rewards, such as ATO tax bills — using a variety of payment methods.
The big selling point? You can use reward-earning credit cards to process business payments that would otherwise offer little or no points. By routing these expenses through the Pay platform, businesses can accumulate PayRewards points at full value or even convert those points to frequent flyer or hotel loyalty programs — like Qantas Business Rewards — and redeem them for flights, upgrades, accommodation and more.
Whether it’s paying the Australian Taxation Office (ATO), BAS, rent or contractor fees, Pay.com.au lets businesses earn valuable rewards on everyday outgoings.
Why Businesses Love It
Earn points on all business spend: Even on transactions that wouldn’t normally earn rewards.
Cashflow benefits: Many credit cards offer up to 55 days interest-free on charges.
Flexibility: Integrations with accounting platforms like Xero make reconciliation easier.
These reward points can hold significant value — for example, thousands of frequent flyer points can translate into free flights for business owners or staff.
The Tax Catch: When Points Become Fringe Benefits
Earning points on purely business expenses is generally seen as a legitimate business benefit. But the story shifts when those rewards are used for personal benefit — especially if they’re retained by employees or business owners in a way that’s more personal than business-related.
In Australia, the Fringe Benefits Tax (FBT) is a tax paid by employers on non-cash benefits provided to employees (or their family members and associates) in respect of their employment. This includes things like cars, gym memberships, gifts and, importantly, some reward points or travel perks if they are tied to employment.
If a business owner or employee earns loyalty points through business expenses and then uses them for personal travel or leisure, the ATO may view this as a fringe benefit rather than a strict business benefit. Reward points transferred or redeemed for personal use — especially when the arrangement doesn’t have a clear business purpose — can attract FBT because they’re a non-cash benefit tied to employment or business use of funds.
Notably, the ATO and tax professionals have previously highlighted that points gained through business expenses, if used personally, may be treated as taxable benefits. The exact treatment can depend on specific circumstances, including who earns and uses the points and for what purpose.
Reporting and Compliance Considerations
FBT applies to employers, not employees. However, if reward points or benefits are provided to employees, the taxable value of these benefits must be calculated, reported and taxed accordingly. FBT is separate from income tax and typically must be lodged with the ATO annually.
To avoid unexpected tax liabilities, businesses using Pay.com.au should:
Keep careful records of who earns points and how they are used;
Consult qualified tax professionals to assess whether personal use of points attracts FBT; and
Understand the difference between purely business use vs personal benefit in the eyes of tax law.
In short, platforms like Pay.com.au offer a smart way to extract value from business expenses. But when reward points or benefits are used for personal gain, businesses need to be mindful of FBT implications and maintain strong records to stay compliant with Australian Tax Laws.
Business should also consider the cost of using Pay.com.au. Sometimes the cost of using Pay.com.au ends up dearer than the benefit.
Please note this is general advice only and you should seek help from a Tax Professional.