How many points can you earn in one year?

By olivergray | Oct 31, 2017, 12:06 AM
Is there a limit to how many points an individual can earn? Is it true that over 250k it is taxable?
I am wondering if any governing body is able to track how many points are earnt.

Thanks for any insight guys!
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By brinkers | Oct 31, 2017, 03:32 AM
Most airline and hotel programs have no set maximum as far as I am aware. Credit Cards have various maximum points (although nothing to do with the ATO)

If points are earned through private expenditure, there is no tax consequence (TD1999/34)

250,000 points is mentioned in one of the rulings as to whether things might be looked at a bit more closely.




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By olivergray | Oct 31, 2017, 04:21 PM
What if i were to pay my business expenses through my personal cc?
As you said they have nothing to do with ATO - how will any governing body assess that?
Also I also read that it's on 'redeemed' points? That was the only way they could put a monetary value on it.

Thanks for the reply brinkers :)
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By daft009 | Apr 06, 2018, 03:07 PM
i think being taxed on it is really unfair, though they haven't done it yet (not that I've read anyway)

I use my points from my business expenses so I can fly in J for my work trips, so I can fly out to my destination later (less time away from my business) and hit the ground running upon arrival and when I arrive back home I am back at work quicker, therefore reducing downtime due to jet lag.

I've increased my efficiency as I'm self employed and every hour in the day matters.
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Mike Beder

By RussM | Sep 24, 2018, 05:02 PM
If points over 250k were taxed then maybe it would be arguable that any annual fees would be tax deductible.
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By mushmush | Sep 24, 2018, 10:29 PM
I run all my business expenses through amex or visa, in one year alone just on amex i earned 800k points and i had no issues. Many hospitality operators do this as they can earn over 20k a week just by paying suppliers.
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By Theviewfrom1a | Oct 29, 2018, 02:09 PM
I run all my business expenses through amex or visa, in one year alone just on amex i earned 800k points and i had no issues. Many hospitality operators do this as they can earn over 20k a week just by paying suppliers.

I'm curious - giving a lot of vendors charge a credit card surcharge does this really cost in financially? Or are the points on offer too good to resist?

Having said that I'm as guilty as anyone of paying with an Amex for the points when it would be cheaper/free to use a debit card :)
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