Westpac’s St.George unit will cut the Amplify Rewards transfer multiplier on everyday supermarket and fuel purchases from 1 November, the latest sign that banks are tightening loyalty economics as interchange revenue and funding costs move in opposite directions.
What changes
Emails sent to cardholders on Monday said eligible spend in those categories will earn partner points at 0.5 times the previous rate when transferred to programs such as Qantas Frequent Flyer or Velocity. Bonus categories including dining and overseas spend are unchanged, and the annual fee on the platinum-tier Amplify card remains $295.
Westpac said the change aligns St.George with Amplify products issued under the Westpac and Bank of Melbourne brands after a harmonisation review. Consumer advocates said the notice period—roughly four weeks—meets regulatory guidance but leaves little time for households planning Christmas travel redemptions.
Why banks trim rewards
Reserve Bank data show total credit card balances hovering near decade highs in nominal terms, but reward program liabilities on bank balance sheets have also grown as Australians chase points for flights that remain expensive in cash terms. When the RBA held the cash rate steady in September, funding spreads for deposit-taking institutions stayed wide, pressuring net interest margins.
CHOICE policy adviser Patrick Veyret said supermarkets and fuel were the “last universal earn categories” for many households. “Trimming multipliers there hits median spenders harder than cutting lounge passes wealthy travellers rarely use,” he said.
Peer comparison
American Express and Macquarie have adjusted earn tables on several products this year, while ANZ’s rewards devaluation on Jetstar redemptions takes effect from the October billing cycle on some cards. Frequent flyer programs themselves have raised the points required for long-haul business seats, compounding the sense that loyalty currency is inflating faster than wages.
St.George customers can still earn uncapped points on Amplify Black for overseas spend, a feature Westpac highlighted in its notice. Migration teams said call volumes rose Tuesday morning but remained below levels seen during pandemic-era lounge closures.
Practical tips for cardholders
Financial counsellors urged users to treat rewards as a discount on spending they would do anyway, not a reason to carry revolving debt. With purchase rates on many platinum cards still above 20 percent, interest charges swamp points value within a single statement cycle if balances are not cleared.
Westpac declined to say whether similar cuts would reach its business rewards cards. For now, St.George Amplify holders who grocery shop weekly may need a new strategy—or a new card—before November statements arrive.
Reading the fine print
Cardholders who auto-transfer points each month should recalculate expected flight redemptions before November, using the new earn tables published in PDF attachments many recipients skip. Westpac’s mobile app will push notifications, but only to users who have marketing alerts enabled.
Small business owners using Amplify for mixed personal and company spend face trickier accounting; accountants recommend separate cards where possible to preserve deductibility and simplify BAS reporting.
The change does not affect balance transfer promotional rates, which remain a bigger debt risk for households rolling over large balances at zero percent for limited periods.
What happens next
Officials and executives contacted by InfoHandle said they would publish further detail when audits complete, stressing that early figures can shift as more data arrives from registries, hospitals or trading desks. Analysts cautioned against treating a single day’s price move or one regulatory letter as proof of a lasting trend.
Consumer groups urged households to read updated product disclosures and to lodge complaints with regulators when timelines slip. For investors, the episode fits a broader pattern of tighter oversight across Australian finance, energy and health markets as Parliament returns for spring sittings.
State and federal agencies promised coordinated messaging so businesses do not face conflicting guidance. Whether that cooperation holds through the election cycle will determine how quickly confidence recovers in the sectors affected.
Local media will track implementation milestones weekly; our desk will update readers if material corrections or retractions are issued by primary sources.
What happens next
Officials and executives contacted by InfoHandle said they would publish further detail when audits complete, stressing that early figures can shift as more data arrives from registries, hospitals or trading desks. Analysts cautioned against treating a single day’s price move or one regulatory letter as proof of a lasting trend.
Consumer groups urged households to read updated product disclosures and to lodge complaints with regulators when timelines slip. For investors, the episode fits a broader pattern of tighter oversight across Australian finance, energy and health markets as Parliament returns for spring sittings.
State and federal agencies promised coordinated messaging so businesses do not face conflicting guidance. Whether that cooperation holds through the election cycle will determine how quickly confidence recovers in the sectors affected.
Local media will track implementation milestones weekly; our desk will update readers if material corrections or retractions are issued by primary sources.