Australian Credit Card Rewards Just Got Worse: Is Your Card Still Worth the Annual Fee?
October reward cuts can change the value of your card. Compare Bankwest and NAB earn bands, calculate the fee break-even point, and decide whether to keep, downgrade or switch.
Quick Answer
October 2026 changes have made some Australian rewards cards less generous, especially for people who spend beyond a monthly points cap or transfer bank points to airline programs. A card is still worth its fee only if the value you actually redeem, plus benefits you genuinely use, exceeds its annual and program fees. If you carry a balance and pay interest, compare that cost first: points are unlikely to rescue an expensive borrowing habit.
The fastest check is to open your last three statements, total eligible purchases by statement period, apply your card's current earn bands, and value the rewards at the redemption you really use. Do not treat one point as one dollar, or assume a 1:1 conversion preserves spending value.
What changed in October?
| Card or program | Verified current position | What to check on your own account |
|---|---|---|
| Bankwest Qantas World | From 1 October: 1 Qantas Point per A$1 on the first A$3,000 of eligible monthly spend, then 0.2 point per A$1. Previously the first band ran to A$5,000, then 0.5. | How much spend sits above A$3,000 each month. |
| Bankwest Qantas Platinum | 0.6 point per A$1 to A$2,500, then 0.15. The lower band was previously 0.3. | Whether your statement regularly crosses A$2,500. |
| NAB Qantas Rewards Signature | Current published earn rate: 0.75 Qantas Point per A$1 on the first A$3,000 per statement period, then 0.25 on eligible spend from A$3,001 to A$15,000. Published annual fee A$449. | Your exact statement period, eligible spend and fee anniversary. |
| NAB Rewards Travel Card | Current published annual fee A$395; 1.5 NAB Rewards points per A$1 on eligible purchases up to A$10,000 per month, then 0.5, with category bonuses subject to terms. | If you hold an older Signature product, read your own change notice rather than assuming identical terms. |
| Westpac cards | Westpac says some card fees, rates and rewards changed from 30 September, with complimentary insurance changes from 1 October. | Look up your specific card's notice and insurance eligibility. |
These are published terms checked on 3 October 2026, not a ranking of every Australian credit card. Fees, caps, exclusions and promotional offers vary by product. An earn rate is only the first step; redemption value determines the money you receive.
The Bankwest change in real numbers
Take a Bankwest Qantas World holder spending A$4,000 in eligible purchases every month. Under the former bands, that earned 4,000 Qantas Points per month. Under the bands effective 1 October, A$3,000 earns 3,000 points and the remaining A$1,000 earns 200: 3,200 points per month, or 800 fewer. If identical spending continued for 12 months, the difference would be 9,600 points. This is a points calculation, not a claim that those points have a fixed cash value.
At A$6,000 monthly eligible spend, the former bands would have yielded 5,500 points; the current bands yield 3,600. That is 1,900 fewer points per month. The higher your spend above A$3,000, the more important it is to rerun your comparison rather than relying on a headline earn rate.
For Bankwest Qantas Platinum, A$4,000 of eligible monthly spend now earns 1,725 points: A$2,500 × 0.6 plus A$1,500 × 0.15. The old second band would have brought the total to 1,950. Your actual result also depends on which purchases count and when they post.
Is the A$449 annual fee worth paying? One NAB example
At A$4,000 of eligible spending in each NAB Qantas Rewards Signature statement period, the published standard bands produce 2,500 Qantas Points: 3,000 × 0.75 plus 1,000 × 0.25. Across 12 identical periods, that is 30,000 points before any qualifying bonuses.
To cover the published A$449 annual fee using only those 30,000 points, you would need to redeem them for at least A$449 of value: about 1.50 Australian cents per point. That is a break-even threshold, not a promise that a Qantas Point is worth 1.50 cents. At A$3,000 per period, the same calculation gives 27,000 points a year and a threshold of about 1.66 cents each. Optional benefits may change your personal result only when you would otherwise pay for them.
If you pay interest, add that cost. NAB's published purchase rate for the Signature card is 22.49% p.a.; your interest-free period and actual charges depend on your account and payment behaviour. Paying the closing balance by its due date under the card's terms matters far more than chasing an extra point.
Calculate your own net card value
Use this simple annual audit:
- Eligible spend: split each month or statement period at the card's earn cap; do not use total spending if exclusions apply.
- Points earned: multiply each band by its corresponding earn rate, then add only bonuses you actually qualify for.
- Value redeemed: use the cash price you would otherwise pay for the same reward, less any taxes or extra charges. Divide by the number of points required to get your own cents-per-point value.
- Net annual value: annual points × your observed A$ value per point + benefits you would really purchase − annual fee − program fees − interest or other card costs.
- Break-even spend: for one uncapped earn band, annual fee ÷ (12 × points earned per A$1 × A$ value per point). If the card has caps or multiple bands, calculate each band separately; there may be no single useful threshold.
For example, an assumed reward worth exactly A$0.01 per point would make 30,000 points worth A$300, leaving a A$149 gap against a A$449 fee before other benefits or costs. The one-cent assumption is illustrative, not a market valuation. Substitute a real redemption you would choose.
Keep, downgrade or switch?
Keep the card if you pay in full, can redeem points at a value that clears the fee, and use any travel insurance or other benefits under their actual conditions. Recheck the calculation after the first statement under the new rules.
Downgrade or seek a lower-fee alternative if you rarely cross a useful redemption threshold, pay for unused perks, or now earn materially less after a cap. Ask your bank what happens to accumulated points, insurance and any promotional terms before changing products.
Compare another card if your spend pattern falls into a sharply reduced band. Include the new card's fee, earn cap, point conversion, eligibility, and the value of a realistic redemption. Do not make several credit applications just to test offers; compare terms first.
Before cancelling, redeem or transfer points only after checking their expiry and transfer rules. Download statements, move recurring payments, confirm any outstanding balance and wait for the issuer's final account closure confirmation. If you were relying on travel insurance, check how a change affects cover for an existing booking.
What should you do now?
Find the change notice for your exact card and note the effective date. Take three recent statements and separate eligible spending below and above each new cap. Price one reward you would actually buy, work out the value per point, and subtract the full annual cost. If your next annual fee is approaching, contact the issuer about a lower-fee product before paying for another year. Check your most recent statement to see whether new rates have already applied.
Bottom Line
Rewards cuts do not automatically make every card a bad deal. They make the net annual value calculation more important. The decisive question is what your points can buy after the new earn bands, fees and your own spending pattern—not how many points a promotion advertises.
