What changed in the Australian card market this year
Two shifts matter. From 1 October 2026, businesses can no longer add a surcharge when you pay with an eligible debit or credit card. That removes a cost that quietly added up at cafes, petrol stations and small shops across the country. The other shift is regulatory. ASIC continues to enforce responsible lending rules, which means banks must check that a card fits your income and expenses before approving it. Approval is no longer a rubber stamp.
Rates sit in a wide band. Low rate cards start around 10.99% p.a. on purchases, while standard cards hover near 20% or higher. ANZ, for instance, lists 20.99% p.a. on its entry-level card, moving to 22.49% later this year. Cash advances cost more, typically above 21% p.a. plus a fee of around 3% of the amount withdrawn. Interest-free days, usually up to 55, only apply when you pay the statement balance in full. Miss that and interest runs from the purchase date, not the statement date.
Three mistakes that cost Australians real money
The first is chasing sign-up bonuses. Big point offers look attractive, but the spend thresholds are steep. A card offering 200,000 bonus points might require $12,000 of eligible spending in a year. People who take the card, pay a $199 or $295 annual fee and miss the target end up with an expensive piece of plastic and nothing to show for it. The bonus points are not free money. They are a reward for spending you may not have planned.
The second mistake is carrying a balance on a rewards card. Rewards cards carry higher interest rates. If you pay $20 in interest for every $1 of points value you earn, the maths simply does not work. Rewards cards suit people who clear the balance monthly. Everyone else should look at a low rate credit card or a balance transfer option.
The third mistake sits in balance transfers. A 0% p.a. offer for 24 or 26 months sounds like free money. It is not. Transfer fees of 2% to 3% apply upfront, and when the promotional period ends, the rate reverts to something much higher, often the cash advance rate. Without a repayment plan, the debt simply waits for you at the end of the tunnel.
Sarah from Brisbane found this out the hard way. She moved $8,000 onto a balance transfer card, kept spending on the old card, and when the 0% window closed, she owed more than when she started. Her fix was simple: close the old card, set a fixed monthly repayment and treat the transfer as a loan with a deadline. She now pays off the balance in 18 months instead of five years.
Comparing cards on the Australian market
The table below shows current offers that suit different spending styles. Rates and fees move often, so treat this as a starting point and check the product disclosure statement before applying.
| Category | Example card | Annual fee | Best for | Strengths | Watch out |
|---|
| Rewards (Qantas) | ANZ Frequent Flyer Black | $425 with $200 cashback in year one | Frequent Qantas flyers | 130,000 bonus Qantas points, lounge passes, travel insurance | High ongoing fee, earn rate drops above spending caps |
| Rewards (Velocity) | Westpac Altitude Velocity Black | Around $425 plus a $75 program fee | Virgin Australia regulars | 150,000 bonus Velocity points over two years, lounge passes | Two fees stack up; recent Westpac cardholders excluded |
| Low rate | CommBank Low Rate | $6 per month | People who carry a balance | Purchase rate from 10.99% p.a., 55 interest-free days | No rewards, personalised rate can go higher |
| Balance transfer | ANZ Low Rate (Balance Transfer) | $58 | Consolidating existing debt | 0% p.a. for 26 months on transfers | 3% transfer fee, reverts to 13.74% |
| No annual fee | American Express Low Rate | $0 | Keeping costs to zero | 10.99% purchase rate, 55 interest-free days | Amex not accepted everywhere |
For households that want points on groceries, the Coles Low Rate Mastercard earns 1 Flybuys point per $2 spent at Coles, with 0% balance transfers for 15 months. Kogan Money offers a $0 annual fee card with 0% for 10 months on transfers. These options suit shoppers who want everyday rewards without a premium fee.
Mark, a consultant based in Melbourne, flies Qantas for work twice a month. For him, a Qantas points credit card makes sense because the points convert to domestic flights he would buy anyway. His rule: pay the statement in full, every month, on time. The annual fee is a ticket he buys for the perks, not a cost he absorbs. In Perth, a small business owner we spoke with runs a different play. She uses a low rate card for stock purchases and a no annual fee card for online orders, keeping the two separate so her books stay clean.
A step-by-step plan for choosing your card
Start with your credit file. You are entitled to one credit report per year from each of the main reporting bodies, Equifax, illion and Experian, under Australian privacy law. Scores range from 0 to 1,000 or 1,200 depending on the agency, and a higher number improves your chances of approval and a lower personalised rate.
Decide your use case before you compare. Ask yourself three questions. Will I pay the balance in full each month? If yes, look at rewards. Will I carry debt for a while? Low rate or balance transfer. Do I travel overseas often? Check the foreign transaction fee, which can reach 3% on some cards.
Work out the real cost. Add the annual fee to any transfer fees, then subtract the value of the points you will realistically earn. Many rewards cards need significant annual spending just to break even on the fee. If your spending falls short, a no annual fee card wins.
Set the repayment to automatic. Banks will happily take the minimum, but that is how interest compounds. Pay more than the minimum and treat the interest-free window as a discount, not a delay.
Where to find help locally
ASIC's Moneysmart website is the most reliable starting point for credit card comparison in Australia and for understanding your rights. If you hit financial difficulty, contact your bank before missing a payment. Under responsible lending rules, banks must consider hardship variations, and asking early gives you more options. The Australian Financial Complaints Authority handles disputes if a lender treats you unfairly.
For travellers, keep one card with no foreign transaction fees for overseas purchases and another low rate card for everyday domestic use. That split covers most situations without paying twice for features you do not need. From October, you can also expect fewer surprise charges at the till, since card surcharges disappear.
The best credit card in Australia is not the one with the biggest bonus or the lowest advertised rate. It is the one that survives contact with your actual spending. Read the product disclosure statement, check the fees table and match the card to the life you live, not the one the marketing team imagines.
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