Banking Sector Adjusts to Regulatory Shifts
Australian financial institutions are preparing for a significant contraction in consumer rewards and credit card benefits starting October 1, 2026. This industry-wide shift follows a directive from the Reserve Bank of Australia (RBA) to ban credit and debit card surcharges, a move intended to reduce financial burdens on small businesses. As the RBA moves to eliminate these fees, banks are recalibrating their interchange fee structures—the processing costs paid by merchants—which historically funded the rewards points and perks offered to cardholders, according to SSBCrack. The Reserve Bank of Australia confirms that the no-surcharge rules begin on October 1, 2026.
Major Bank Policy Changes
The transition is prompting diverse responses from Australia’s “Big Four” banks, each restructuring their offerings to maintain margins in a post-surcharge environment:
- Commonwealth Bank: Launching “CommBank Yello” on September 29, the bank is pivoting away from the Qantas Frequent Flyer program. Customers will no longer earn Qantas points, and the $35 card fee waiver for Ultimate credit card holders is being replaced by monthly travel and dining vouchers.
- National Australia Bank (NAB): Effective October 1, NAB is reducing the points-earning rate on Qantas Rewards Premium cards. Points accrual will drop from one point per $1.50 to one per $2 for initial monthly spending, with further reductions for higher spending tiers. The bank is also removing merchandise and charity redemption options.
- ANZ: The bank has preemptively tightened terms on its Black and Platinum cards, significantly reducing sign-up bonuses and removing $100–$200 cashback offers. Additionally, ANZ has increased interest rates on cash advances and balance transfers to 23.49% per annum.
- Westpac: The institution is raising annual fees and interest rates on selected cards while scaling back travel insurance benefits, specifically removing coverage for trip cancellations and luggage delays.
Hospitality Sector and Economic Stakes
While the RBA’s ban is projected to save consumers approximately $1.6 billion in direct fees, the hospitality sector has expressed concerns regarding the broader economic impact. Industry representatives warn that the inability to pass processing costs to consumers may lead to a widespread increase in menu prices across restaurants and cafes, as businesses look to offset the loss of surcharge revenue. The transition period, which stakeholders describe as a challenging shift, is expected to finalize by early October, leaving consumers to navigate a landscape where high-value rewards programs are increasingly difficult to sustain.