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How to read the points estimates
The table’s 12-month estimate can include a sign-up bonus. When comparing cards, start with the points you’d earn from your usual spending. Check which purchases qualify, when the earn rate drops and what the points are worth for the reward you’d actually choose. Then subtract the card fee and any separate rewards program fee. Compare sign-up and later bonuses separately, using the offer’s eligibility, spending and timing rules.
ANZ Rewards Platinum — tiered earning and annual cost. On $5,000 of eligible purchases in one statement period, the first $2,000 earns 3,000 ANZ Reward Points and the next $3,000 earns 1,500. That’s 4,500 points per statement, or 54,000 over 12 identical statements, before bonuses. Eligible spending above $25,000 in a statement period earns zero points. The annual cost is $149, made up of a $94 card fee and a $55 Rewards Program Service Fee. Under the ANZ Reward Points offer, eligible new cardholders can earn 85,000 bonus points with $3,500 in eligible purchases within three months of approval. The additional 40,000 points are a later bonus for meeting the retention terms beyond 12 months. ANZ card and offer terms
Amex Essential Rewards — a points threshold can change the result. If all $5,000 of spending in a calendar month qualified for the 5 points per $1 dining rate, the first $2,000 would earn 10,000 Membership Rewards points. The remaining $3,000 would earn 3,000 points at 1 point per $1. That’s 13,000 points for the month before any sign-up bonus. A different mix of purchases can change the result. Amex earn rules
The Monthly Scoop: November's Rewards Update
At its 3 November meeting, the Reserve Bank raised the cash rate target by 0.25 percentage points to 4.85%, effective 4 November 2026.
At the same time, the Christmas shopping season is about to ramp up. Last November, Aussies put a record $29.9 billion on their credit cards, according to RBA data. If gifts, groceries and summer holiday bookings are going on a card anyway, a rewards card can turn that spending into points towards flights, upgrades or gift cards.
There are some big sign-up bonuses around this month, but they only add up if you pay your balance in full each month. With most rewards cards charging over 20% p.a. on purchases, interest can quickly wipe out the value of any points you earn.
Editor's Pick-of-the-Bunch: Best Rewards Credit Cards for November
The Westpac Altitude Rewards Black Credit Card offers up to 150,000 bonus Altitude points (90,000 when you spend $9,000 in the first 90 days, plus 60,000 when you spend $9,000 within 90 days of your card anniversary) and earns 2 points per $1. The card fee is $200 in the first year and $295 a year after that. A separate $75 annual Altitude Rewards Program fee brings the total to $275 in the first year and $370 a year after that. The card includes complimentary travel insurance.
The Qantas American Express Ultimate Credit Card offers up to 120,000 bonus Qantas Points for new Amex Card Members who apply by 17 November 2026 and meet the spend criteria in years one and two. The $450 annual fee is offset by a $450 Qantas Travel Credit each year, and you earn 1.25 points per $1.
The American Express Velocity Platinum Credit Card is a strong pick for Virgin Australia flyers, with 50,000 bonus Velocity Points when you spend $5,000 in the first 3 months and 1.25 points per $1. It's only open to people who haven't held an Amex card in the past 18 months, and the annual fee is $440.
⭐ Choose a program you'll actually use: If you mostly fly Qantas, a Qantas-earning card makes sense, while Virgin Australia regulars will get more out of Velocity Points. Before you apply, compare the annual fee with the value of the rewards you'd realistically redeem in a year.
T&Cs apply for all card offers so check our review, the PDS and TMD for details.
What the October 2026 RBA changes mean for your rewards card
Two changes took effect on 1 October 2026 that matter to rewards cardholders.
- Card surcharges. Visa, Mastercard and eftpos introduced rules that generally stop merchants from adding a surcharge to eligible card payments. American Express introduced its own no-surcharge rules. Exceptions can apply under each network’s rules. RBA surcharge guidance
- Interchange fees. Interchange is a fee the merchant’s payment provider pays to the card issuer. For covered Australian-issued credit cards on transactions processed in Australia, the cap fell from 0.8% to 0.3% for consumer cards and stayed at 0.8% for commercial cards. RBA interchange rules
What this means for your points
Card issuers can use interchange revenue to help fund rewards. Lower caps can prompt issuers to review their rewards programs. Changes to earn rates, fees and spending caps depend on the card and issuer. RBA interchange review
For example, ANZ announced eligible-spending caps of $25,000 per statement period for its Rewards Platinum and Frequent Flyer Platinum cards, and $50,000 per statement period for its Rewards Black and Frequent Flyer Black cards. ANZ says the caps affect eligible purchases included in statements issued on or after 28 November 2026. ANZ card changes
Your questions about the RBA changes
Will my rewards card earn fewer points now?
It depends on your card. Check your issuer’s latest terms for eligible purchases, earn rates and how much you can spend before the earn rate drops or points stop accruing.
Can a shop still charge me a surcharge?
Generally, merchants can’t add a surcharge to eligible payments on Visa, Mastercard, eftpos or American Express. Exceptions can apply under each network’s rules. RBA surcharge guidance
Is a rewards card still worth it?
If you pay your balance in full each month, compare the value of the rewards you’ll actually redeem with the card fee plus any mandatory rewards program fee. Use the break-even examples further down this page to see how spending, earn rates and redemption values affect the result.
For more detail, read our guide to the credit card surcharge ban.
An easy but complete guide to rewards credit cards
Rewards credit cards earn points for your everyday spending, or give you a lump sum of bonus points when you apply and meet the criteria. You can redeem your points on a variety of perks and freebies, from flights and accommodation to merchandise and gift cards.
In this guide, we’re going to explain how rewards cards work and how you can earn the most points from them.
⚡ Quick guide to rewards cards:
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What rewards card readers ask us most
We analysed 20 reader questions submitted to this page. Here's what Australians are genuinely confused about when it comes to rewards credit cards:
30%
20%
20%
20%
10%
Source: CCAU editorial analysis of 20 reader questions submitted to this page. Categories assigned by editorial team. This breakdown is not available on other Australian comparison sites.
The biggest surprise: more readers ask about which purchases count and what earn rate they'll actually get than about which card to choose — so we've gone deeper on earn-rate mechanics below.
How do you earn points?
Earning points is as easy as using your card for everyday transactions. If you’re super-savvy, you can use your card for expensive purchases – for example, a flat screen tv or a new couch – and pay it off immediately just for the points.
Every card will have a different ‘earn rate’, which is the number of points you receive for every dollar you spend.
What about bonus points?
Some rewards cards will offer bonus points (which could be as high as 200,000 points) that you can earn when you sign up as a new customer. Bonus points can sometimes be enough to cover entire international flights, making them one of the card's biggest perks.
Here's an overview of how bonus points work:
- Bonus points are a one-off lump sum of points you'll earn as a new cardholder.
- Sometimes there are other cards listed that you can't have held in the past, for example, from the same credit provider.
- You may need to meet certain criteria to unlock the bonus points; this could include spending a certain amount within the first few months, or holding the card for at least 12 months.
- Points are usually credited to your points account within 2 to 12 weeks of meeting all the criteria.
What’s the best rewards card?
Honestly, the best rewards card is the one that earns enough points to make you the winner at the end of the day.
Rewards cards aren’t for everyone, especially if you don’t usually pay off your card each month. Paying interest really eats into the value of your points!
Here are a few things to think about:
💰 Your income. Many rewards cards need a reasonable income because they’re a higher-tier card.
💸 How much you spend. You need to be a reasonable spender to earn enough to make a rewards card worthwhile after paying for annual fees. But, you don’t want to risk overspending and paying interest. It’s a balancing act.
🎁 Where you want to redeem your points. Knowing how you want to spend your points helps you pinpoint the best card for you. For instance, do you want deals on supermarket shopping, flights or travel perks?
Next, let’s look at the different types of programs you can redeem points with. It will help you decide what kind of rewards card you’d like.
Is your rewards card annual fee worth it?
The examples below use hypothetical annual fees and earn rates, not named cards. They assume a redemption value of 0.6 cents per point ($0.006), no additional program fees, no interest, and no earn-rate caps. This is a calculation assumption, not a typical or guaranteed value for any rewards program. Use the value of the specific points you earn and include any mandatory separate program fee when calculating your own result.
| Card tier | Annual fee | Earn rate | Break-even spend/month | Points at break-even |
|---|---|---|---|---|
| Entry-level | $49/yr | 0.75 pts/$1 | $907/month | 8,167 pts/yr |
| Mid-tier | $149/yr | 1.0 pt/$1 | $2,069/month | 24,833 pts/yr |
| Premium | $299/yr | 1.5 pts/$1 | $2,769/month | 49,833 pts/yr |
| Example D (hypothetical) | $450/yr | 2.25 pts/$1 | $2,778/month | 75,000 pts/yr |
Annual break-even spend = annual card fee plus any mandatory annual program fee, divided by (eligible points earned per $1 × value of one point in dollars). Monthly break-even spend = annual break-even spend ÷ 12. In these examples the point value is $0.006. If your redemption value were $0.003 instead, the required spending would double. Figures are rounded and exclude bonuses, interest, other charges and non-points benefits.
Compare like with like: Example D uses a hypothetical $450 annual fee and 2.25 points per $1; it does not describe the American Express Platinum Card. A higher earn rate only helps if the points have comparable redemption value and the eligible-spend rules, fees and caps suit your spending.
What programs can you earn reward points with?
Airlines and credit card providers all have unique programs. That means you can choose which program will give you the most benefits; for instance, frequent travellers might like to earn Qantas Points, while everyday shoppers might prefer Flybuys or ANZ Rewards.
Here's a snapshot of the different rewards programs available in Australia.
Airline programs that use frequent flyer points:
- Qantas Frequent Flyer. You'll earn Qantas Points that have the most value when used for flight upgrades and flights, although you can also redeem points for hundreds of retail items, the Qantas Wine club and gift cards through the online Qantas Marketplace.
- Velocity Frequent Flyer. Velocity is Virgin's loyalty program and points can be redeemed for flights and upgrades, car hire and hotel bookings, plus products and gift cards.
Financial institutions that use rewards points:
- Amex Membership Rewards. Amex's loyalty program is an all-rounder that redeems points for entertainment and unique member experiences, shopping and even travel through Amex Travel Online. They also transfer out to a wide rage of global airline programs.
- Flybuys. You can earn Flybuys by signing up for free, and double-dip with a credit card that earns Flybuy points. Flybuys can be redeemed at Coles supermarkets for items or money off your shopping, spent at partnering stores or converted into Velocity Frequent Flyer points.
- NAB Rewards. Earn bonus points at participating brands (including dining) and NAB's exclusive Boosted Offers. NAB Rewards can be used for gift cards, cashback, shopping, entertainment and more.
- ANZ Rewards. ANZ gives you the option of redeeming points for retail products, gift vouchers, entertainment and travel. You can transfer points to the Velocity, Singapore Airlines Krisflyer or Air New Zealand frequent flyer programs.
- Bankwest More Rewards. Bankwest's loyalty program gives you the option of redeeming points for cashback, so you can spend your money however you like. Or, you can redeem points for experiences, shopping and gift cards.
- St.George Amplify. Amplify Points can be redeemed within the St.George rewards portal for goodies like shopping, gift vouchers and entertainment.
- Bank of Melbourne Amplify. Use your points for gift cards, shopping, and charitable donations. You can also redeem them for frequent flyer points with Virgin Australia and Singapore airlines.
- HSBC Rewards Plus. Rewards Plus points can be redeemed as cashback on your credit card, turned into gift vouchers or used for travel. HSBC Rewards Plus points can be converted into Velocity points for flights and upgrades.
- Westpac Altitude. From gift cards and cashback to partner airlines, Westpac Altitude Points give you plenty of ways to redeem your points. Altitude Reward points can be used with partnering frequent flyer programs such as Velocity, Kathay Pacific and Singapore Airlines Krisflyer.
- Commbank Awards. These points can be redeemed directly with Myer and Flight Centre, or online for gift cards, cashback, electronics and travel. You can also redeem them for Qantas and Velocity frequent flyer points, plus other airline loyalty programs.
Comparing rewards cards to find the right one
We try to make it as easy as possible to compare cards, but you’ll need to know a few basics first. Think about these factors when you’re comparing rewards cards.
What’s the annual fee? Remember I said you’ll need to make sure you’re winning in the end? You have to weigh up the cost of the annual fee against the value of your redeemed points each year. Let’s look at a couple of examples.
| Let’s say Laura has a rewards card with a $450 annual fee. Each year she earns 8,000 rewards points, which turns into 1 free flight from Sydney to Melbourne, valued at $200. ❌ Laura is paying too much in annual fees for the amount she’s earning in points. |
| Now let’s say Dane has a rewards card with a $295 fee. He earns 24,000 points each year and redeems them for flights too, valued at $650. ✅ Dane is getting value from his card because he earns more in points than he pays in fees. |
How many points per $1? Cards that earn more points per $1 often have higher annual fees. Remember that all programs have different values; so, for instance, 1 Qantas Point has a different dollar value than an ANZ Rewards point or a Velocity Point.
Some cards will earn different points for different items, too. You might earn 1 point for everyday spending, and 0.5 points on government payments, for example.
Does the card include bonus points? A payload of points can tip the scales on credit card comparison, especially if you want to earn points for something specific like a trip.
Is there a cap on points you can earn? Some cards only let you earn points up to a certain amount (100,000 points in a year, for example). Or, you might earn less after you spend a certain amount per month (0.5 points per $1 instead of 1 point after you’ve spent $10,000 that month, for example).
What program will give you the best stuff? Look through the list of programs above and decide what you would like to spend your points on. That way, you can compare cards with similar programs.
What extra features does the card have? The amount of features is tied in with the annual fee; the pricier the card, the better the perks. Here’s what you can look for and compare:
- Free travel insurance: some providers offer complimentary travel insurance for rewards card holders (always check the terms to make sure it’s right for your trip)
- Interest-free balance transfers: you won’t pay interest on an amount you transfer from another credit card or personal loan (for some cards). It’s a neat way to help pay off debt.
- Extra deals: Some rewards cards have discounts on music, fashion, event tickets, travel, dining and movies.
What’s the interest rate? You’ll get the most out of your rewards card if you pay it off each month and never pay interest on it. But, if you do carry a balance it’s important to choose a card with the lowest interest rate possible.
How do you redeem your points?
This is the fun part. Depending on the program, you can use your points for:
- Travel: one of the best perks is discounted – or even free – travel and holiday purchases. You can book accommodation, flights, rental cars, tours and cruises to pretty much anywhere in the world.
- Retail merchandise: use your points for everyday items at retail stores. Think clothing, homewares, technology and beauty products.
- Gift cards: some rewards cards allow you to redeem points as gift cards, which gives you the flexibility of using the cash wherever you like (or give it as a gift).
- Cashback: you might be able to spend your points as money, which can take the form of cash in your pocket, a credit on your rewards card, or a payment towards your annual fee.
To redeem your points, you can:
- Use the provider’s online rewards store to buy products or gift cards
- Pay with your points at selected retails stores (and fill in any gaps with cash, called Points + Pay)
- Use an eligible travel agency or shop direct with airlines like Qantas and Jetstar
Here’s a step-by-step for redeeming your points online:
- Check how many points you have to spend. You’ll usually be able to do this through your credit card app or online portal. You’ll need to use the airline website to redeem Qantas or Velocity points, or points through partner airlines.
- Check out your reward options. Browse your card’s online marketplace or the airlines website for items you can redeem your points on. You’ll often have options to use points to cover the cost, or use Points + Pay to cover the remainder with cash.
- Choose it and click submit. When you’ve found what you’re looking for, just hit the redeem button. Then it’s a matter of waiting for the order to arrive.
What purchases won’t earn points?
Ooh, this is where that tricky phrase ‘eligible transactions’ pops up. Not everything you buy earns points, and you’ll only find the list of ineligible transactions in the card’s terms and conditions.
Here’s what most rewards cards won’t give you points for:
- Cash advances. A cash advance is a withdrawal of money from your credit card, and it attracts immediate interest, but no rewards.
- Balance transfers. Popping your debt from a credit card onto your rewards card won’t earn any points.
- BPAY payments. Online BPAY payments don’t count towards point earnings either, unfortunately.
- Government payments. Most rewards cards won’t accrue points by making payments to the ATO, although a very small selection do. You’ll need to check the rewards program and the small print.
From our expert: How to get the most out of your reward card
“Use your card to earn points everywhere you can, but never spend more than you can afford. Pay off your card every month to avoid paying interest, or you’ll diminish the value of your awesome rewards points.”
-- Pauline Hatch, Chief Finance Expert
What credit card has the best rewards?
Compare points within the same rewards program and check the earn-rate limits. For example, ANZ Rewards Black earns 2 ANZ Reward Points per $1 on the first $5,000 of eligible purchases per statement period, then 1 per $1. From 28 October 2026, eligible spending above $50,000 per statement period will not earn points; ANZ says the cap affects purchases in statements issued on and after 28 November 2026. Westpac Altitude Rewards Black earns 2 Altitude Points per $1 on eligible everyday spending, with different rates for other categories and a reduced 0.5 points per $1 after $10,000 of eligible spending in a statement cycle. ANZ Reward Points and Altitude Points do not have the same redemption value.
Remember to check if there's any points capping or bonus points offers as these can vary from card to card. Ultimately, the credit card with the best rewards is up to you and your spending habits.
Questions from our readers
Francis asked:Asked 23 Sep 2024 "I've done a quick google research, a business flight from Sydney to Jakarta would cost me 57–60k Qantas points while the same flight would cost 137k KrisFlyer miles. Doesn't that mean Qantas is better value?"
Compare the same route, cabin, travel dates and reward availability, including any cash charges. Your quoted redemption figures are a historical example, not current prices. Then work backwards from the airline points needed using your card’s earn rate and, where relevant, the bank-points-to-airline-points transfer rate. For a purely hypothetical example, 60,000 airline points earned directly at 1 point per $1 require $60,000 of eligible spending. If a card earns 2 bank points per $1 and converts at 3 bank points to 1 airline point, the same airline-points target requires $90,000. Neither calculation includes a sign-up bonus, fees or earn caps, and neither establishes which program is better for your trip.
Myra asked:Asked 10 Apr 2024 "Can I get points if I pay ATO bills?"
Some American Express cards earn points on eligible government payments, including ATO payments, but the earn rate and exclusions depend on the card. Check the card’s current government-payment terms and the payment fee before paying. Compare that fee with a realistic value for the points you would earn; a tax payment is not automatically a worthwhile points opportunity.
SHAHEEN asked:Asked 14 Oct 2023 "I'm shopping around for a new Visa or Mastercard to rack up serious points. I currently use the Amex Platinum but need a secondary option for merchants that don't accept Amex — monthly spend around $30,000."
At $30,000 of eligible spending in one statement period, the current ANZ Rewards Black rates would earn 35,000 ANZ Reward Points: 10,000 on the first $5,000 and 25,000 on the remaining $25,000. This is an illustration before fees, refunds, exclusions and any bonus points. ANZ Reward Points are not Qantas Points; compare the available transfer partners and conversion rates with the airline program you use. Check the new $50,000 eligible-spend cap from 28 October 2026 and the statement timing explained above. A high earn rate alone does not establish which card is best for you.
Ro asked:Asked 27 Sep 2024 "I'm looking at the AMEX Essential Rewards card and using the website calculator for 12 months with a monthly spend of $5,000 — I'm trying to work out what I'd actually get."
The Essential Rewards card charges $9 a month ($108 over 12 months). It earns up to 5 Membership Rewards points per $1 in eligible categories, with accelerated earning limited to the first 10,000 points earned each month; after that, spending earns 1 point per $1 until the monthly threshold resets. If all $5,000 of monthly spending qualified for the 5-point rate, $2,000 would reach 10,000 points and the remaining $3,000 would earn 3,000 points: 13,000 points that month, or 156,000 over 12 identical months, before bonuses, refunds and adjustments. A different spending mix changes the result. The calculator estimate must account for this points threshold; do not assume every dollar earns 5 points.
The "platinum" naming trap: Dozens of cards use "platinum" or "premier" in their name but earn as low as 0.5 points per dollar. Meanwhile some cards with generic names earn 2+ points per dollar. Never use the card's tier name as a proxy for earn rate — always check the actual points per dollar in the product disclosure statement.
Frequently asked questions about rewards cards
❓ How much do I need to earn for a rewards card?
All cards have different income requirements, and many credit card providers don’t give a figure anymore. It’s safe to say that a premium card - which might cost $300 to $450 per year will have a higher income requirement. For instance, you might need to earn around $75,000 per year.
❓ Can I do a balance transfer on a rewards card?
Yes, some rewards cards have balance transfer options. Some might even have special offers that mean you won’t pay interest during a promotional period. You can also look at our balance transfer comparison guide.
❓ I’m seeing the words ‘platinum’ and ‘premier’ everywhere. What does that mean?/
Those words mean the card is considered a higher-tiered card and comes with more extras (and likely a higher annual fee). Let’s take a quick look at each.
Standard rewards cards. These cards won’t have words like platinum or premier in the title and may not earn as much per $1 as higher-tier cards. They also may have fewer features and perks.
Platinum rewards cards. You may earn more per $1 and earn bonus points on certain products or government spending. These cards are more likely to come with travel insurance, concierge services, and waived international transaction fees.
Diamond or ‘super premium’ rewards cards. These are the highest-tier cards and are more rare. They often come with exclusive, executive-style perks and travel features. The annual fee and the income requirement will be high.
❓ What purchases won’t earn points?
Generally, most rewards programs won't give you points for cash advances, balance transfers, BPAY payments and paying card fees. Some cards will give you points for government payments and others won't. Check our review and the PDS to see if you can earn on government payments.
❓ I want the maths on rewards point values. How do I calculate it?
For a specific redemption, divide the cash cost you would otherwise pay, less any required cash co-payment, by the points needed. Multiply by 100 to express the result in cents per point. This is an estimate for that redemption, not a fixed value for the entire program.
For a hypothetical item priced at $395 or 12,000 points with no cash co-payment: $395 ÷ 12,000 × 100 = approximately 3.29 cents per point.
The inverse calculation is 12,000 ÷ $395 = approximately 30.38 points per $1 of redemption value. That is a different unit, not cents per point.
Compare the same item or itinerary and include relevant cash charges and conditions. You can also use our points-value calculator to explore a specific redemption.
❓ Can I earn points using BPAY?
Not usually. You’ll need to check the eligible transactions list in the card’s terms and conditions.
❓ Do rewards points expire?
The expiration of your rewards points depends entirely on the provider. Some offer no expiry date on points, some lapse unless you redeem at least some points within a certain timeframe, and others will disappear entirely if there’s no action on your account.
Check your provider’s expiry policy so you don’t lose your hard-earned rewards if you leave your account dormant.
How much are 80,000 NAB points worth?
Rewards points can vary in dollar value depending on what you use it for, but 80,000 NAB points are enough for roughly $480 of gift cards.
Are credit card rewards worth it in Australia?
The answer to this lies in how you use your credit card. If you're diligently paying off your outstanding balance each month, then rewards cards are a great way to get free stuff. If you carry a balance then you might be better off looking at 0% introductory offer credit cards. You also need to weigh up whether the cost of the annual fee outweighs any rewards you are earning. As with all credit products there's plenty to think about!
Sources and references
- Qantas Frequent Flyer — Points value and redemption rates (qantas.com)
- Reserve Bank of Australia — Credit Card Rewards Programs in Australia, September 2022 (rba.gov.au)
- ASIC MoneySmart — Rewards credit cards: what you need to know (moneysmart.gov.au)
- Reserve Bank of Australia — Review of Merchant Card Payment Costs and Surcharging: Conclusions Paper, March 2026 (rba.gov.au)
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