Australian Credit Card Perks Set to Shrink from October as Points, Insurance and Fees Change — Sydney Auction Clearance Rate at 57%

Weekly Market Focus

From 1 October, Australia will ban card surcharges and significantly reduce the interchange fees banks can charge, a move expected to cut bank revenues by as much as AUD $900 million a year. In response, several banks have already begun reshaping their credit card offerings, with changes including lower rewards points, higher interest rates and annual fees on some products, and tighter complimentary travel insurance benefits.

ANZ has already reduced sign-up bonuses on selected new cards. For example, the Qantas Points bonus offered with the ANZ Frequent Flyer Black has been cut from 130,000 to 80,000 points, while the minimum spending requirement needed to qualify for the bonus has increased.

From 1 October, NAB will restructure its credit card rewards program, reducing the number of points earned per dollar spent across several products and lowering some higher-rate earning thresholds. For example, the NAB Qantas Rewards Premium Card, which currently earns one Qantas Point for every AUD $1.50 spent, will instead earn one point for every AUD $2 spent.

Westpac is focusing more heavily on changes to insurance benefits. Some credit cards will lose cover for trip cancellations, flight delays and baggage, while international travel insurance claims may attract an excess. The maximum duration of travel covered by many cards will also be reduced to just one month.

CBA will begin introducing its new arrangements from 29 September, including changes to rewards points and insurance benefits. The bank will also progressively replace some fee rebates with dining and travel vouchers, while its Yello program will shift away from a cashback-focused model towards a partner rewards system.

American Express is not directly covered by the new surcharge rules, but has also indicated that it plans to voluntarily reduce relevant fees. It has yet to announce specific changes to its credit card products.

Overall, Australian personal credit cards are likely to offer fewer rewards and complimentary benefits after October. For cardholders, this means it may be worth reassessing annual fees, interest rates, the real value of rewards points and travel insurance benefits to determine whether their existing card still offers good value.

Last Week’s Auction Results

Sydney: A total of 726 properties were taken to auction, with results reported for 425 properties. Of these, 241 were sold, resulting in a 57% clearance rate. The total auction value reached AUD 227,537,568, with a median sale price of AUD 1,620,000.

Melbourne: A total of 638 properties were taken to auction, with results reported for 456 properties. Of these, 275 were sold, resulting in a 60% clearance rate. The total auction value reached AUD 173,684,938, with a median sale price of AUD 986,000.