HSBC has decided to withdraw from retail banking in Australia. The bank will fully exit the local market and phase out its savings accounts, transaction accounts and credit cards over the coming months.
As of 31 July 2026, HSBC no longer accepts new applications for any Australian retail banking products, including credit cards. Existing customers can keep using their cards. HSBC says current card services, rewards and benefits remain unchanged for now. This includes the HSBC Star Alliance Credit Card, a favourite among frequent flyers.
The bank will close its Australian retail operation in phases over the next 18 months, pending regulatory approval. This staged exit covers its entire credit card portfolio, so it looks as though the Star Alliance Credit Card will eventually be discontinued.
HSBC Star Alliance Credit Card
HSBC issues several rewards cards, including options that earn Qantas Points. However, it probably best known for the Star Alliance Credit Card. It’s a card that became popular with frequent flyers because it made Star Alliance Gold status easy to reach.
One of its standout features was the path it offered to Star Alliance gold status. As a new cardholder, you were on the fast‑track to Star Alliance Gold by spending $4,000 on eligible purchases in the first 90 days. Depending on the chosen frequent flyer program, this could unlock status in a participating Star Alliance program.
For many, this was a program such as Singapore Airlines KrisFlyer Gold or Air Canada Aeroplan 50K. The Air Canada option was popular as it gave up to two years of Star Alliance Gold benefits. Whichever program was chosen, the perks included lounge access when flying eligible Star Alliance airlines.
The card also earned Star Alliance Points. These points could then convert into miles or points with participating programs. This had some appeal, especially because Australia offers very few ways to earn Star Alliance status through a credit card. For many flyers, this made the HSBC Star Alliance Credit Card a worthwhile option.
Existing Cardholders
That’s all well and good, but what happens if you already hold one of the cards? For now, existing HSBC cardholders can continue using their cards as normal. HSBC says all current credit card accounts will operate under their existing terms and conditions until further notice. Of course, that further notice will be coming your way at some point.
That said, the bank has already stopped accepting new credit card applications. It has also stopped processing requests for additional cardholders, credit limit increases, balance transfers and product transfers. In short, the product range is now closed to new activity.
HSBC says customers will receive direct communications with more details and timelines for their specific products in the coming weeks. One open question is how HSBC (or the individual Star Alliance programs) will manage existing Star Alliance status and points in the Star Alliance Rewards program during the shutdown.
However, the HSBC Star Alliance Rewards terms do give some indication of what may happen. They state that your membership in the program is automatically cancelled when your credit card account is closed. It even goes on to say that your status may be removed.
This means anyone holding the card primarily for Star Alliance Gold should watch HSBC’s upcoming communications closely. Ideally, the individual programs could offer a goodwill extension or at least grandfather existing benefits until their current expiry date. However, there is not guarantee that they will. Until the bank provides clarity, cardholders should pay close attention to any updates about Star Alliance Rewards and how the shutdown may affect their status and points.
Final Words
HSBC’s decision to shut down its transaction accounts and credit card operations isn’t a shock. The bank has been trying to sell its Australian retail business for some time. While it found a buyer for its home loan and personal loan portfolio, there was far less interest in the rest of its retail products.
Most everyday banking services can be replaced easily at other institutions. But Australian points collectors and frequent flyers will miss the HSBC Star Alliance Credit Card. There is nothing else quite like it. While not the most generous card points wise, the card offered a simple pathway to Star Alliance Gold and a way to earn and transfer Star Alliance Points, something no other Australian card currently matches.
That said, for existing cardholders, there’s no need to act immediately. HSBC says accounts will continue operating under current terms for now. Further information will be available soon.
Given there is no guarantee the card will continue, you may want to start considering where you’ll move your rewards strategy once HSBC closes the card.
