Banks Slash Credit Card Rewards as RBA Cuts Loom

The Reserve Bank of Australia's (RBA) upcoming payment reforms are expected to negatively impact credit card rewards, and several major banks have already begun making changes. American Express has banned surcharges on some cards, while others like ANZ, Westpac, NAB, and Virgin Money have reduced sign-up bonuses or benefits for consumers. The RBA's interchange fee cap is set to be reduced by more than 60%, which could lead to lower rewards earnings.

Several credit card issuers are offering lucrative rewards programs that may be worth taking advantage of before the changes take effect on October 1, 2026. One such offer is from Westpac, which provides up to 150,000 bonus Qantas Points for spending $6,000+ within 90 days of card approval.

Other notable offers include the Qantas American Express Ultimate Card, which offers a $450 Qantas travel credit immediately offsetting its $450 annual fee. The American Express Explorer Card also stands out with a $400 travel credit and Membership Rewards Points transfer partners.