The Australian credit card market is going through a shake-up
If you have compared credit cards in Australia before, you will notice things look different now. Banks have been adjusting their offerings, and the Reserve Bank of Australia's decision to remove card payment surcharges from 1 October 2026 has pushed major lenders to rethink how they fund rewards. With interchange fees capped lower, banks are recovering revenue through higher annual fees, adjusted interest rates, and slimmer perks. That means the old rule of thumb "pick the card with the best points" no longer works on its own.
Several factors now matter more than they used to. The purchase interest rate (often around 20.99% p.a. on rewards cards) is worth checking if you ever carry a balance. The annual fee range has widened, from $0 for basic cards up to several hundred dollars for premium products. And the points earn structure is changing across the big four banks. Westpac, for example, has flagged updates to its Rewards Points program and credit card fees from late September 2026, while NAB is adjusting points earn rates from 1 October 2026. Commonwealth Bank has folded credit card benefits into its broader Yello loyalty program, where earning rates now depend on your tier and how many products you hold with the bank.
Match the card to your spending, not the marketing
The biggest mistake Australians make is chasing a sign-up bonus they cannot realistically hit. A $15,000 minimum spend in 90 days sounds great until you realise your monthly outgoings are closer to $3,000. Instead, work backwards from your lifestyle.
If you fly regularly with Qantas, a Qantas Rewards card from NAB or Westpac could be a sensible fit. NAB's current offer includes up to 130,000 bonus Qantas Points plus $250 cashback, with 0% balance transfer for 12 months. Westpac's Altitude Qantas Black card earns up to 1.2 Qantas Points per dollar and offers lounge passes and complimentary insurances, but it demands a $75,000 minimum income and carries a $395 annual package fee plus a $75 rewards program fee. Those are significant costs, so the card only pays off for frequent flyers who spend consistently.
If you prefer flexibility, a cashback or low-rate card may serve you better. Westpac's Low Rate card sits at 13.74% p.a. on purchases with a $500 minimum credit limit, and it offers up to $450 cashback in the first six months. For people who occasionally carry a balance, the lower interest rate beats any points program. Cashback deals from ANZ and others follow a similar pattern: earn a set amount back per month when you spend above a threshold.
Then there is the everyday spender who wants no annual fee and a simple structure. Many banks offer no-fee cards with modest earn rates, and these can be the smartest option if your annual spending is under roughly $15,000. Paying $395 a year for points that are worth less than that in travel redemptions is not a good trade.
| Card type | Typical example | Annual fee range | Best for | Main advantage | Watch out for |
|---|
| Premium rewards | Westpac Altitude Qantas Black, ANZ Rewards Black | $295-$395 plus program fee | Frequent flyers, high spenders | Lounge access, high points earn, complimentary insurances | High minimum income and spend requirements |
| Mid-range rewards | NAB Qantas Rewards Premium | $100-$300 | Regular travellers | Solid points earn with bonus offers | Points tiers may change from October 2026 |
| Low rate | Westpac Low Rate | $0-$30 | Balance carriers | Lower purchase interest rate | Fewer rewards features |
| Cashback | NAB or Westpac cashback offers | $0 first year, then low ongoing | Consistent monthly spenders | Direct money back | Requires meeting monthly spend targets |
| No annual fee | Various basic cards | $0 | Light users | No ongoing cost | Limited perks, often higher standard rate |
Balance transfers: useful, but read the fine print
Balance transfer offers remain popular in Australia, and they can genuinely help you clear debt faster. A typical deal runs at 0% p.a. for 12 to 20 months, with a balance transfer fee around 3%. After the promotional period ends, the unpaid amount reverts to the variable cash advance rate, which can be well above the purchase rate. The key is having a repayment plan before you apply. If you transfer a balance and keep spending on the card, most banks allocate payments to the cheapest debt first, which means your new purchases can sit at the full interest rate while the 0% balance slowly reduces. Use a separate card for new spending, or stop using the card during the promotional window.
What the surcharge ban means for you
From 1 October 2026, businesses in Australia can no longer charge surcharges on debit and credit card payments, and interchange fees are capped at lower levels. For consumers, the visible change is simple: that extra 1% to 1.5% fee you used to pay at cafes, restaurants, and retailers disappears. The hidden change is that banks are recovering the lost revenue elsewhere. Watch your statement carefully after October. Your annual fee, interest rate, or points earn rate may have shifted without much fanfare. The RBA itself has acknowledged that issuers may change how they fund rewards, so comparing your card against the market once a year is now genuinely worthwhile.
Steps to choose and apply for the right card
Start by pulling your last three months of bank statements and categorising your spending. Are you paying for flights, groceries, fuel, or bills? Each category earns differently, and some transactions, such as ATO payments, BPAY, cash advances, and gambling, are excluded from points on most cards. NAB, ANZ, and Westpac all list these exclusions clearly in their terms.
Next, decide what you actually value. Frequent flyers should check whether points convert into Qantas, Velocity, or airline miles and whether the redemption value beats the annual fee. Balance carriers should prioritise the lowest purchase rate, not the flashiest bonus. Cashback seekers should confirm the monthly spend threshold is realistic for their budget.
When you apply, have your ID, income details, and employment information ready. Australian banks require you to be 18 or over, a citizen or permanent resident, or a visa holder with more than 12 months remaining, and you need a good credit rating. Most applications are assessed online, and many banks let you check your eligibility without affecting your credit score through a pre-approval step.
Finally, review your card once a year. Set a reminder to check whether your earn rate, fee, or benefits have changed. If your spending habits have shifted, switching to a lower-fee card or a different rewards program could save you money without losing the perks you actually use. Compare sites like Canstar and Finder update their tables regularly and are a practical starting point, though the final choice should always be based on your own statement data.
Note: Interest rates, fees, and bonus offers vary by bank and are subject to change. Figures mentioned here reflect publicly available product information as of late September 2026. Always read the terms and conditions and confirm current rates with the issuer before applying.
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