Australian Banks Devalue Rewards Credit Cards, One-Off Points Top-Up Offered

Several Australian banks are set to devalue their rewards credit card products in October 2026. NAB, Westpac, CommBank, and St.George will significantly reduce the value of flexible points earned on their cards, requiring more bank points to redeem for airline frequent flyer points.

The changes aim to offset the loss of interchange fees due to the RBA's surcharge ban. While intended to save consumers money, many experts agree that this move will ultimately cost Australians more in the long run.

Not all banks are devaluing their rewards programs, however. American Express Membership Rewards and ANZ Rewards remain unchanged, but with some benefit cuts and new points caps.

The banks making changes include CommBank Yello (previously Awards), which will close entirely on 29 September 2026 and fold into the bank-wide Yello points program with worse transfer rates and annual fees. Qantas Frequent Flyer transfer rates will be affected, while Velocity Frequent Flyer's rate will change to 2.5:1 from 3:1.

Some banks are offering a one-off points top-up for existing balances before the changes take effect. NAB Rewards and MyCard will apply a top-up, with NAB providing an example where a 20,000-point balance gets a 13,200-point boost, or 66%.