Credit cards in Australia

Australia's card market is built around frequent flyer points — Qantas Points and Virgin Australia's Velocity Points — to a degree no other country matches. The big four banks (Commonwealth Bank, ANZ, Westpac, NAB), American Express and Citi-issued Qantas Money cards compete on points per dollar, lounge invitations and insurance. Alongside that sits a strong second market in low-rate, no-fee and 0% balance-transfer cards. This page explains how Australian cards work and which type fits which spender.

How Australian credit cards are different

• Points caps and monthly thresholds. Most frequent flyer cards earn 1 point per dollar only up to a monthly cap (A$3,000–A$10,000) and 0.5 beyond it. High spenders should compare caps, not just headline rates.
• Annual fees are high — and often discounted. Premium frequent flyer cards cost A$295–A$450 a year; first-year discounts and fee waivers (CommBank Ultimate, HSBC) are common.
• Purchase rates vary widely. Rewards cards charge 20%–24% p.a.; low-rate cards 11%–14%. If you carry a balance, the low-rate card wins by a mile.
• Responsible lending rules. Since 2019, issuers must assess whether you could repay the full limit within three years, and you can ask for a limit reduction or cancellation online at any time.
• Comprehensive credit reporting. Your repayment history on every card and loan is visible to lenders through Equifax, Experian and illion.

Which card type fits you

Qantas Points vs Velocity Points vs bank points

Qantas Points are the most valuable on Qantas Classic Reward flights and upgrades (often 1.5–2 cents each), earned directly on Qantas Money, ANZ Frequent Flyer and Amex Qantas cards. Velocity Points work similarly for Virgin Australia and partners. Bank points (Westpac Altitude, CommBank Awards, ANZ Rewards, Amex Membership Rewards) transfer to either airline, usually at 2:1 or 3:1, which halves the effective earn rate but keeps your options open. If you only fly Qantas, a direct-earn Qantas card is better; if you fly both airlines or abroad, flexible points are safer.

Approval in Australia

Lenders check your Equifax (0–1,200), Experian (0–1,000) and illion scores plus your repayment history. Premium cards want a 'very good' or 'excellent' band and proof of minimum income (A$65,000–A$75,000 is common). Responsible lending means the issuer will ask for income, expenses and existing limits and may offer a lower limit than you requested. Limits above A$6,000 on Amex-style cards typically need higher income.

Fees to check

• Annual fee — up to A$450; ask whether it is waived in year one or with a spend threshold.
• International transaction fee — 3% on most cards, 0% on Bankwest Zero, 28° Global, Coles Rewards, CommBank Ultimate and others.
• Cash advance — fee plus a higher rate (often 21%+) from the day of withdrawal.
• Balance-transfer fee — 1%–3% on many 0% offers; some NAB and Westpac offers have no fee.
• Late payment — around A$20–A$30 and a mark on your comprehensive credit report.

Consumer protections in Australia

ASIC regulates card issuers under the National Consumer Credit Protection Act. You have 55 interest-free days on most cards when you pay in full, can cancel or reduce limits online, and cannot be offered unsolicited limit increases. Liability for unauthorised transactions is limited under the ePayments Code, and chargeback rights apply through Visa, Mastercard and Amex. Disputes escalate to the Australian Financial Complaints Authority (AFCA).