The $18k trap: could a rewards card leave you out of pocket?

Canstar Research estimates that Qantas Points are worth approximately $0.01334 each when redeemed for flight reward seats (as opposed to wine or other available rewards). This calculation is based on a range of flight routes, dates, and seat types, comparing the cash value of each flight against the number of points required to redeem it. Flight quotes were collected for dates ranging from October 2025 to July 2026.

Of course, it’s worth keeping in mind that frequent flyer points are only part of the picture, and are not the only perk offered by premium rewards credit cards. Some cards come with a variety of perks like complimentary travel insurance, airport lounge passes, and even annual travel credits. If you’re a frequent traveller and tend to pay your balance off on time, these perks can come in extremely handy, and can more than outweigh the annual fees.

Additionally, different rewards programs may offer better value for some purchases over others. For instance, a person redeeming their points for a flight might be able to afford a higher-value service in return for a certain number of points than another redeeming their points for a toaster.

Are rewards credit cards really worth it?

If you’re pondering whether to sign up for a rewards card, or even looking at your current one and wondering if it’s still cutting the mustard, it pays to ask yourself a few questions.

Will you carry a balance on the card?

Rewards cards tend to have the highest interest rates of all credit cards, hovering around 20.99% p.a. at the big four banks. If you don’t pay off your balance in full with each statement, you might be eating into the value of your rewards. If you’re the type to carry a balance on a credit card, then a rewards card may not suit your needs.

Is the sign-up bonus worth it?

Some rewards credit cards offer bonuses tied to your spend–for example, 50,000 Qantas points if you spend $5,000 in the first three months. Offers like this can be worthwhile if you normally spend at such a level and can comfortably pay your balance off. If not, your reward points could end up costing you more than you bargained for in credit card interest.

What are the rewards worth to YOU?

Some rewards may not be worth a lot for you. A card that rewards you with Qantas points won’t mean much if you don’t plan on flying Qantas. On the other hand, some cards may offer bonus points for spending at specific places, like petrol stations. If you already fill up there, then the extra rewards could make a meaningful difference to you.

Are you just chasing the rewards?

Credit card rewards can be appealing, but taking out a card just to chase the rewards can lead to reckless spending. If you do take out a rewards card, don’t spend more than you normally would just for the sake of chasing points, lest you find yourself drowning in debt without a lot to show for it.

Are credit card rewards changing in Australia?

The Australian credit card landscape will likely see big changes in the next few months. From 1 October 2026, the Reserve Bank of Australia (RBA) is banning surcharges on credit and debit payments across the eftpos, Mastercard, and Visa network.

While it’s unclear how banks will respond, there’s speculation that we may start to see credit card fees go up and rewards points programs scaled back to make up for lost earnings. We may even see some new players enter the field with different kinds of offerings.

Global fintech Revolut is currently trying to woo spenders with a rewards debit card. Revolut’s Ultra plan comes with a hefty monthly fee of $99.99 (or $999 annually) and offers rewards points for spending on debit, rather than credit cards.

Will any Australian banks follow suit and begin offering rewards debit cards of their own? This remains to be seen. But in the meantime, it’s worth doing an audit of your rewards credit card to see if you’re still getting value for money.