How to maximise frequent flyer points [#276]

✈️ Are frequent flyer points still worth it after the rewards shake-up?

❓Question:
With banks reducing rewards and changes to card surcharges coming into effect, should Australians still be chasing frequent flyer points?

✅ Short Answer:
Yes, but only if you play the game strategically. Frequent flyer points can still deliver significant value, particularly for travel, but the rules are changing. According to points expert David Moloney, Australians need to focus on earning points efficiently, avoiding interest charges, and redeeming points before they lose value.

💡 Key Takeaways:
New RBA rules are reducing the amount banks earn from credit card transactions, which means some rewards programs are becoming less generous.
Around 35% of credit card payments are linked to frequent flyer programs, meaning millions of Australians could be affected by changes to rewards schemes.
Two-thirds of Qantas Frequent Flyer points are now earned on the ground rather than in the air through shopping, credit cards and loyalty partnerships.
Simple strategies such as linking supermarket rewards programs, using airline shopping portals and pooling family points can boost balances with little extra effort.
The most valuable points collectors focus on the highest return for the lowest level of effort, rather than chasing every available promotion.

🚨 Watch Out For:
Never carry credit card debt just to earn points. Interest charges can wipe out any rewards value.
Credit card annual fees only make sense if the value of the points and benefits exceeds the cost.
Paying card surcharges that are greater than the value of points earned can leave you worse off.
Avoid making unnecessary purchases simply to earn points. The points should be a bonus, not the reason for spending.
Redeem points regularly rather than hoarding them for years, as airlines and loyalty schemes can devalue points over time.

🎯 Who This Matters To:
This episode is for travellers, credit card users, frequent flyer members and anyone looking to get more value from everyday spending. If you collect Qantas Points, Velocity Points or other loyalty rewards, you’ll learn practical ways to maximise your rewards while avoiding costly mistakes.

📚 Resources & Links:
Points: Mastering the Game of Frequent Flyers by David Moloney
Qantas Frequent Flyer Program
Reserve Bank of Australia payments and surcharge reforms discussed in the episode

⏱️ Timestamps:
00:00 Introduction
01:08 How the new RBA rules are changing rewards programs
02:10 Why Australians should still collect points
03:05 Why most points are now earned on the ground
04:13 The “highest return for lowest effort” strategy
05:45 Three easy ways to earn more points
07:29 Are points really free?
08:00 The dangers of credit card debt and rewards chasing
09:11 The hidden “lazy tax” points collectors pay
10:37 Why you should redeem points before they lose value
11:00 Final thoughts

Podcast Links:
Listen on Apple Podcasts: https://apple.co/3mV0Cbr
Listen on Spotify: https://spoti.fi/3fSPI2h
Website: https://moneymag.com.au
Email: podcast@moneymag.com.au
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