Australian credit card rewards are set for a significant overhaul as major banks adjust their products ahead of the Reserve Bank of Australia’s interchange fee cap reduction to 0.3%. With lower interchange revenue, banks are introducing a mix of changes that will reshape the value of many rewards and frequent flyer cards.
To manage the impact, banks are leveraging several cost‑recovery strategies, including:
- Reduced points‑earning rates – Personal rewards and frequent flyer cards may earn fewer points per dollar as issuers respond to lower interchange income.
- More Points for redemptions – In some cases, you will need more points to redeem an award, or transfer rates to other programs will become worse
- Higher annual fees – Premium card tiers are likely to see fee increases as banks offset lost revenue.
- Adjusted interest rates and stricter credit criteria – These changes primarily affect customers who carry a balance month‑to‑month.
- Cutbacks to complimentary insurance and extended warranty benefits – Reducing insurance coverage is a straightforward cost‑saving measure for issuers.
What’s notable is that each bank is taking a different approach. Because providers are rolling out unique combinations of fee changes, earn‑rate reductions, and benefit adjustments, the value of individual cards may diverge sharply. Reviewing the latest updates from your bank can help you identify which rewards card still aligns with your spending habits and which products may no longer deliver strong value.
The Big Four
ANZ
ANZ’s credit card changes are particularly notable because the bank is one of the few issuers preserving its points‑earning rates. Rather than lowering earn rates, ANZ has taken an alternative approach by adding new points caps and reducing the range of complimentary insurance benefits included with several cards.
Points
ANZ has largely preserved its rewards program compared to its competitors, but it is introducing monthly points earning caps. From late 2026, ANZ Rewards Platinum cardholders will only earn points on up to $25,000 of eligible spend per statement period, while ANZ Rewards Black cardholders will be capped at $50,000 per statement period. Similar caps are also being introduced across ANZ’s Qantas Frequent Flyer credit card range.
For most cardholders, day-to-day earning rates remain unchanged. However, high spenders will see lower overall rewards accumulation once the new caps take effect
Fees
Annual card fees have generally remained unchanged across the rewards portfolio. However, ANZ is increasing cash advance fees and standard purchase interest rates on several cards. Cash advance fees will rise from 3% to 3.5%, while minimum and maximum cash advance charges are also increasing.
Insurance
ANZ will make substantial cuts to complimentary insurance benefits from late 2026 and early 2027. The changes vary by card, with ANZ reducing coverage levels, shortening benefit periods and, in some cases, removing complimentary travel insurance altogether.
Several cards, including the ANZ Rewards Platinum, will lose key travel insurance benefits. ANZ will remove International Travel Insurance, Domestic Travel Insurance and Rental Vehicle Excess Insurance from affected products, significantly reducing their overall value proposition for travellers.
CommBank
CommBank has delivered the most substantial rewards program overhaul among Australia’s major banks. As such, the changes are less about card-specific rewards and more about replacing its entire rewards ecosystem.
Points Earn
CommBank Awards will be closed and replaced by the broader CommBank Yello program. Instead of earning Awards points solely through credit card spend, customers will be able to earn Yello Points through credit cards, banking products, loans, insurance, travel bookings, savings and partner offers. Earn rates will vary according to a customer’s Yello status tier
Redemptions
Existing Awards points will convert into Yello Points. The new program introduces additional transfer partners, but transfer rates to airline partners such as Velocity and Qantas are less generous than under the previous Awards program
Fees
A major change affects the popular Ultimate Awards card. The long-standing monthly fee waiver based on spending requirements is being removed, effectively turning the product into a higher-cost premium card.
Insurance
Unlike several competitors, CommBank has largely retained travel insurance benefits on premium cards such as the Ultimate card. International travel insurance remains available, subject to eligibility and activation requirements
NAB
NAB is making significant changes to its rewards program from 1 October 2026. These include changes to earn rates, redemption rates and rewards redemption options.
Points
NAB is reducing earn rates across both its NAB Rewards and NAB Qantas products. For example, Qantas earn rates on the Signature card fall from 1 point per dollar on the first $5,000 of monthly spend to 0.75 points per dollar on the first $3,000, with lower earn rates applying beyond that threshold. Some cards gain bonus earning opportunities on groceries, petrol, and international transactions, but overall rewards value is lower than before.
Redemptions
Redemptions are being devalued significantly. Gift cards require substantially more points, and Velocity transfers move from a 2:1 transfer ratio to 3:1. NAB will provide a one-off points adjustment to existing balances to preserve the value of points already earned before the changes take effect.
Fees
NAB’s October 2026 changes focus primarily on rewards devaluation rather than substantial fee increases. That said, NAB making changes to the interest rates that are charged for both purchases and cash advances.
Insurance
Most of NAB’s insurance reductions occurred earlier in 2026. While there were no additional reductions, many NAB Rewards Platinum, Velocity Rewards Premium and other cards no longer include International Travel Insurance, Domestic Travel Insurance or Rental Vehicle Excess Insurance
Westpac
Westpac has taken a different approach by targeting insurance benefits rather than dramatically cutting ongoing earn rates.
Points
Earn rates were cut in 2025, with lower earnings after monthly spend thresholds and weaker airline transfer rates from 2026. In the latest round of changes, dining spend will earn fewer points.
In addition, there will be changes to transfer rates.
Redemptions
Altitude Rewards transfer rates are worsening. Transfers to partners such as KrisFlyer, Velocity and Asia Miles require more Altitude points than before, reducing redemption value.
Fees
Westpac is introducing a new annual rewards fee on Altitude Rewards cards and increasing program fees for Altitude Qantas and Altitude Velocity products. This means many customers will pay more while simultaneously earning fewer rewards
Insurance
From 1 October 2026, Westpac is significantly reducing its complimentary travel insurance offering. Many benefits are being removed, with coverage largely restricted to:
- International Medical Travel Insurance
- Domestic Travel Insurance
- Rental Vehicle Excess Insurance in Australia
The Others
Bankwest
Bankwest’s changes represent one of the clearest devaluations for reward-focused and insurance-focused cardholders.
Points
The More Rewards portfolio is shifting to a monthly tiered earning model. Instead of earning a single rate across all spending, cardholders will earn full points only up to a monthly spending threshold. Reduced earn rates will apply after that threshold is reached
The Qantas Classic, Qantas Platinum and Qantas World cards will all earn fewer Qantas Points once monthly spending thresholds are exceeded.
Redemptions
No significant changes to redemption rates or transfer rates have been announced. Most of the impact is on earning points rather than spending them
Insurance
Bankwest has confirmed changes to its complimentary credit card insurance program from 1 October 2026. The changes affect eligible cardholders covered by Bankwest’s complimentary travel insurance arrangements.
New benefits being added
For eligible Platinum and World Mastercard holders:
- Overseas Funeral/Cremation/Body Repatriation
- $15,000 per cardholder
- $30,000 for cardholder and family
- Baggage Delay Expenses
- $600 per cardholder
- $1,200 for cardholder and family
Benefits being removed
The following complimentary insurance benefits will no longer be included from 1 October 2026:
- Accidental Death cover
- Extended Warranty
- Purchase Security
- Price Guarantee
- Interstate Flight Inconvenience cover
- Transit Accident Insurance
MyCard
MyCard is seeing changes very similar to NAB’s rewards strategy. This is probably not surprising given that NAB is the issuer behind MyCard.
Points earn
The impact depends on the card. Rewards-focused cards generally receive improved earn rates on supermarket, petrol and international spending. However, Qantas variants suffer lower earn rates and new caps, while the Prestige card is being discontinued entirely.
Redemptions
This is one of the biggest changes. Gift cards, cashback and Velocity transfers all require more points from October. To offset the change, MyCard will provide a one-off points uplift on existing balances.
Fees
The entry-level MyCard Rewards annual fee increases from $199 to $249 for new customers.
Insurance
No major changes to complimentary insurance have been announced as part of the October update package. Most announced changes relate to rewards, earn rates, redemption values and product restructuring
Overall
How you are affected by the change will depend on just which cards you hold. Here’s a bit of a summary:
- Most severe insurance cuts: Westpac, Bankwest and ANZ.
- Biggest rewards devaluations: NAB and MyCard, largely through a combination of lower earn rates and more expensive redemptions.
- Most structural change: CommBank, with the end of Awards and migration to Yello.
- Least affected on ongoing earn rates: ANZ, although high spenders will notice the new earning caps.
- Most disappointing for frequent travellers: Bankwest and Westpac due to the substantial reduction in travel and purchase protection insurance benefits.
