Impact of RBA surcharge ban on Qantas points earnings and alternatives

Consensus Summary

The core story revolves around the Reserve Bank of Australia’s October 2023 ban on debit and credit surcharges, which indirectly threatens the lucrative rewards programs of credit card providers. The 63% reduction in interchange fees—from 0.8% to 0.3%—cuts into the revenue banks pay airlines for frequent flyer points, mirroring the 2017 RBA crackdown that slashed points earn rates and capped sign-up bonuses. With credit cards no longer a reliable way to accumulate bulk Qantas points, the article highlights alternative methods to earn rewards, such as Qantas Health Insurance (140,000 points for new sign-ups), the Qantas Wellbeing app (1,000 points in the first month for fitness goals), and partnerships with retailers like Woolworths, Red Energy, and Ampol. These alternatives offer ongoing earning opportunities through everyday spending, utility bills, and shopping portals, though the long-term sustainability of these deals remains uncertain as competition for points earners intensifies. The consensus is clear: frequent flyers must adapt their strategies away from credit cards to maintain access to rewards, with Qantas and other airlines adjusting their promotions to compensate for lost revenue.