Qantas doubles points and status credits ahead of RBA credit card reforms

The offer, which doubles points and status credits for members, is seen as an attempt by Qantas to cushion the blow of incoming Reserve Bank of Australia regulations that will cap interchange fees and limit the lucrative rewards that credit card issuers can offer.

Starting October 1, the RBA’s new rules will reduce the interchange fees that banks can charge merchants on credit card transactions. The changes are expected to slash the revenue banks earn from premium rewards cards, prompting many issuers to cut sign-up bonuses and ongoing points earn rates. For frequent flyers, this means fewer points from everyday spending and new credit card accounts.

Qantas’s decision to double points and status credits now gives members a short-term opportunity to boost their balances before the new landscape takes hold. The airline’s loyalty program, Qantas Frequent Flyer, is one of the largest in Australia and a significant source of ancillary revenue for the carrier.

While the promotion rewards existing members, it also serves as a competitive move against rival Virgin Australia, which operates its own rewards scheme, Velocity. Airlines worldwide have faced pressure as credit card reform in various markets reduces the points ecosystem that drives program engagement.

The RBA’s reforms follow similar actions in other countries, including the United States, where the Durbin Amendment capped debit card interchange fees, and Europe, where regulations have limited fees for cross-border payments. Australian regulators have argued the changes will lower costs for merchants and, ultimately, consumers through lower prices.

Critics of the reforms, however, warn that consumers who use rewards credit cards could lose out on travel perks and points that make credit cards attractive. The Qantas bonus offer provides a temporary buffer, but members may find it harder to accumulate points after October.

The promotion runs until a date yet to be specified in the articles, but members are urged to act quickly to take advantage of the double points and status credits before the October deadline.

Why This Matters

Frequent flyers who rely on credit card spending to earn Qantas points face a significant reduction in earning capacity after October 1, making the current promotion a critical window to top up balances.
The RBA’s credit card reforms are part of a broader push to reduce merchant fees, potentially lowering costs for businesses and consumers but reshaping the rewards landscape for millions of Australians.
Qantas’s aggressive promotion signals that airlines view loyalty programs as a key competitive differentiator, and the changes may alter which credit cards consumers choose.

Background

The Reserve Bank of Australia has long reviewed interchange fees, which are charged to merchants when customers pay by card. These fees fund the rewards and points offered by credit card companies. In response to merchant complaints about high costs, the RBA moved to cap interchange fees, announced earlier in 2026. The October 1 implementation date gives banks and airlines little time to adjust. Qantas has historically relied on partnerships with banks like Westpac and Citi to offer co-branded cards with generous points. The new regulations are expected to reduce the profit margins on those cards, leading banks to cut back on rewards. This is not the first time Qantas has bolstered its loyalty program ahead of regulatory changes; similar moves occurred when the government reviewed credit card surcharging.

Key Perspectives

Qantas: The airline aims to retain member engagement and loyalty by offering a short-term boost. It benefits from a large points pool that encourages spending on partner products and services. Banks and credit card issuers: They face reduced revenue from interchange fees and may need to restructure their rewards offerings. Some may reduce sign-up bonuses or ongoing points earn rates, potentially losing customers to alternative payment methods. Consumer advocates and critics: They argue that rewards credit cards encourage spending and debt, and that the RBA reforms will ultimately benefit all consumers through lower merchant prices. However, they acknowledge that frequent flyers who chase points may lose out, as the promotion is a temporary fix rather than a long-term solution.

What to Watch

The specific earn rate changes announced by major banks (NAB, CBA, Westpac, ANZ) in the weeks leading up to October 1.
Whether Virgin Australia’s Velocity program launches a similar promotion to retain members.
Consumer spending patterns on credit cards after the reforms, especially premium card usage.
Any further RBA guidance or potential delays to the October 1 deadline.

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