Best Credit Cards Australia 2026: Top Picks by Category

Quick answer: The best credit card depends on one question: do you pay the full balance every month? If you do, a rewards card can pay you back. The Qantas American Express Ultimate has the highest everyday Qantas earn rate, and its $450 fee is offset by a $450 Qantas travel credit. The NAB Rewards Travel card earns flexible points with no foreign transaction fees. If you sometimes carry a balance, ignore rewards: the Amex Low Rate charges 10.99% with no annual fee. All figures below were checked on each issuer's own website on 29 October 2026.

Best credit card by category (October 2026)

If you want…	Our pick	Key numbers	Full comparison
Qantas Points on everyday spending	Qantas American Express Ultimate	1.25 pts per $1; $450 fee, $450 Qantas travel credit	This page
A large Qantas sign-up bonus	Qantas Money Platinum	Up to 80,000 bonus Qantas Points	This page
Velocity Points	Virgin Australia Velocity Flyer	Up to 70,000 bonus points; $169 fee	This page
Flexible points + no foreign fees	NAB Rewards Travel	Up to 180,000 bonus points; $0 international fee	This page
Cash back instead of points	ANZ Platinum	$350 back on $3,500 spend; $0 fee in year one	This page
No annual fee	Kogan Money	$0 fee; 1 point per $1	No annual fee cards
The lowest interest rate	Amex Low Rate or Community First Low Rate	10.99%, $0 fee; or 9.99%, $50 fee	Interest-free and low rate cards
To move existing card debt	NAB Low Rate	0% balance transfer for 26 months, 3% fee	Interest-free and low rate cards
Spending overseas	Bendigo Ready	$0 fee; $0 international transaction fees; travel insurance	Travel credit cards

Why recheck now: the Reserve Bank cut the cap on consumer credit card interchange fees from 0.8% to 0.3% of each transaction from 1 October 2026 (RBA conclusions paper). That fee income helps fund points, and several issuers have since cut earn rates, added caps or raised fees. Sign-up offers also change often, so confirm the current offer on the issuer's site before applying.

Best Qantas frequent flyer credit cards

Qantas American Express Ultimate: best everyday Qantas earn rate

Feature	Detail
Earn rate	1.25 Qantas Points per $1 on everyday purchases; 2.25 per $1 on eligible Qantas products; 0.5 per $1 at government bodies. Drops to 1 point per $1 after 100,000 points are earned in a calendar year
Annual fee	$450, with a $450 Qantas Travel Credit each year for eligible Qantas flights booked through Amex Travel
Purchase rate	23.99% p.a.
Sign-up bonus	None shown on the product page
Currency conversion fee	3.5% (Amex fees)
Travel insurance	Complimentary domestic and international cover when you pay for your return trip on the card

Source: Amex Qantas Ultimate page, checked 29 October 2026.

The highest everyday Qantas earn rate among these cards. If you fly Qantas at least once a year, the travel credit cancels the annual fee. Don't use it overseas: the 3.5% conversion fee costs more than the points are worth. Pair it with a no-foreign-fee card.

Qantas Money Platinum: biggest Qantas sign-up bonus

Feature	Detail
Earn rate	1 point per $1 on domestic spend up to $10,000 per statement period, then 0.5 per $1; 1.5 per $1 on international spend; plus 1 extra point per $1 on Qantas spend
Annual fee	$349 in the first year, then $399
Purchase rate	20.99% p.a.
Sign-up bonus	Up to 80,000 Qantas Points: 40,000 when you spend $5,000 within 90 days of approval, plus 40,000 more if you haven't earned Qantas Points on a credit or charge card in the previous 24 months
International transaction fee	3%

Sources: Qantas Money Platinum and fees and rates, checked 29 October 2026.

The full 80,000 points only goes to people new to earning Qantas Points on a card. The extra international earn doesn't make up for the 3% international fee.

Best Velocity frequent flyer credit card

Virgin Australia Velocity Flyer: best everyday Velocity card

Feature	Detail
Earn rate	0.5 Velocity Points per $1 on eligible transactions (limits apply), plus 1 extra point per $1 at Virgin Australia
Annual fee	$169
Purchase rate	21.99% p.a.
Sign-up bonus	Up to 70,000 bonus Velocity Points plus 50 Status Credits (spend criteria apply)
Annual perk	$129 Virgin Australia Gift Voucher each year, on request
International transaction fee	3.30%

Sources: Velocity's Virgin Money card page and Virgin Money rates and fees, checked 29 October 2026.

If you fly Virgin Australia at least once a year, the $129 voucher covers most of the $169 fee. Check the spend conditions for the bonus on the application page.

Best flexible points credit cards

Bank points programs can be transferred to several airline and hotel programs, which suits people who don't want to lock into one airline.

NAB Rewards Travel: flexible points with no foreign fees

Feature	Detail
Earn rate	1.5 NAB Rewards Points per $1 up to $10,000 a month, then 0.5 per $1; plus 1 extra point per $1 on eligible groceries, petrol, public transport and travel (uncapped)
Annual fee	$395 ($295 in year one for existing NAB customers)
Purchase rate	22.49% p.a.
Sign-up bonus	Up to 180,000 points: 120,000 when you spend $5,000 within 90 days, plus 60,000 after holding the card for 12 months. Not available if you've held a personal NAB Rewards card in the last 24 months
International transaction fee	$0
Extras	Domestic and international travel insurance; two airport lounge visits a year

Source: NAB Rewards Travel card page, checked 29 October 2026.

One of the few premium points cards that also works well overseas. If you collect Velocity Points, NAB Rewards Points convert at 3 NAB points to 1 Velocity Point, so the 1.5 base rate equals 0.5 Velocity Points per $1. Choose it for the travel features, not as a Velocity earner.

ANZ Rewards Black: widest airline transfer list

Feature	Detail
Earn rate	2 points per $1 on the first $5,000 per statement period, then 1 per $1 up to $50,000; no points above $50,000
Annual fee	$375 ($320 card fee + $55 rewards program fee)
Purchase rate	22.49% p.a. (from 28 September 2026)
Sign-up bonus	None on the product page
Transfer partners	Velocity, Asia Miles, Air New Zealand Airpoints, KrisFlyer and World360 Rewards

Sources: ANZ Rewards Black page and ANZ card changes, checked 29 October 2026.

The $50,000 monthly earn cap applies from 28 October 2026 and first shows on statements issued from 28 November 2026; it only matters for very high spenders. ANZ is also removing complimentary travel insurance from this card from 24 March 2027.

Best cashback credit cards

Cash back is the simplest reward: no points to value, no reward seats to find.

ANZ Platinum: simplest cashback offer

Feature	Detail
Sign-up offer	$350 back when you spend $3,500 on eligible purchases in the first 4 months from approval
Annual fee	$0 in year one, then $87, waived in any year you spend $20,000 or more
Purchase rate	22.49% p.a. (from 28 September 2026)
Travel insurance	Complimentary international cover; from 9 December 2026 the maximum trip length falls from 3 months to 1 month and trip cancellation cover from $20,000 to $10,000

Sources: ANZ Platinum page and ANZ card changes, checked 29 October 2026.

NAB Low Rate: cashback plus a low ongoing rate

Feature	Detail
Offer (choose one)	$400 cash back when you spend $5,000 within 150 days of opening, or 0% on balance transfers for 26 months (3% fee)
Annual fee	$99 ($0 in year one for existing customers who take an offer)
Purchase rate	13.99% p.a.

Source: NAB Low Rate page, checked 29 October 2026.

The $400 covers four years of the fee, on top of a purchase rate well below the rewards cards. Don't make new purchases on a card carrying a transferred balance: repayments usually go to the higher-rate purchases first (Moneysmart).

No annual fee, low rate, balance transfer and travel cards

These categories each have their own full comparison, so here are just the top picks:

No annual fee: Kogan Money charges $0 every year, earns 1 point per $1 (2 at Kogan.com), and offers 0% on balance transfers for 6 months with no transfer fee. Its purchase rate is 21.99% and its international fee 3.4%. See no annual fee credit cards for all seven genuinely $0-fee cards, including one that earns Qantas Points.
Lowest interest rate: Amex Low Rate at 10.99% with no annual fee, or Community First Low Rate at 9.99% with a $50 fee. Community First's 9.99% also applies to balance transfers and cash advances.
Balance transfer: NAB Low Rate offers 0% for 26 months with a 3% fee. The full list of 0% offers, fees and revert rates is in interest-free and low rate credit cards.
Travel: Bendigo Ready charges no annual fee and no international transaction fees, and includes up to 3 months of international travel insurance (for people under 81). Travel credit cards compares eight 0%-foreign-fee cards.

Rewards cards compared

Card	Program	Earn rate	Sign-up offer	Annual fee	International fee
Qantas Amex Ultimate	Qantas	1.25 pts per $1 (1 pt after 100,000/yr)	None shown	$450 (offset by $450 travel credit)	3.5%
Qantas Money Platinum	Qantas	1 pt per $1 (to $10,000/statement)	Up to 80,000 pts	$349 yr 1, then $399	3%
Velocity Flyer	Velocity	0.5 pts per $1	Up to 70,000 pts + 50 Status Credits	$169	3.30%
NAB Rewards Travel	NAB Rewards (flexible)	1.5 pts per $1 (to $10,000/month) + 1 bonus pt on everyday categories	Up to 180,000 pts	$395	$0
ANZ Rewards Black	ANZ Rewards (flexible)	2 pts per $1 (to $5,000/statement), then 1 pt	None shown	$375	Not shown on product page
ANZ Platinum	Cashback	—	$350 back on $3,500 spend	$0 yr 1, then $87	Not shown on product page

All figures from the issuer pages linked in each card section above, checked 29 October 2026.

Points or cash back: which is worth more?

It depends on how you redeem. Points used for flights, especially international business or first class, are generally worth several times more per point than the same points used for gift cards, merchandise or statement credit. Points used for shopping are usually the worst value.

Points usually win if you fly at least once or twice a year, can build up a meaningful balance through spending and sign-up bonuses, and are flexible enough to book reward seats early.
Cash back usually wins if you rarely fly, don't want to manage a points balance, or just want a guaranteed, immediate return.

Reward seat availability is limited and points requirements change, so check the airline's current reward chart before choosing a card for a specific trip.

How to choose

Your situation	Best category
Pay in full every month, fly Qantas	Qantas frequent flyer
Pay in full every month, fly Virgin Australia	Velocity frequent flyer
Pay in full, want flexibility or travel overseas	Flexible points with no foreign fee
Pay in full, want simplicity	Cashback
Sometimes carry a balance	Low rate
Spend little and want no ongoing cost	No annual fee
Have existing card debt	Balance transfer

The interest trap: why carrying a balance cancels any reward

The rewards cards above charge between 20.99% and 23.99% on purchases. At 22.49%, carrying a $3,000 balance all year costs about $675 in interest, more than most people earn in rewards on any of these cards. The rule is simple: pay the full statement balance every month. If you haven't managed that in the past year, a low-rate card beats any rewards card.

Are credit card rewards taxable?

Not for personal spending. The ATO's view is that rewards from consumer loyalty programs earned through private spending are not taxable. Rewards earned through business spending can have tax consequences; the ATO's practice statement on loyalty program rewards explains when. If you run business expenses through a points card, ask your tax agent. Use the Income Tax Calculator to check your marginal rate.

Frequently asked questions

What is the best credit card in Australia?

It depends on how you use it. For Qantas Points on everyday spending, the Qantas American Express Ultimate (1.25 points per $1, $450 fee offset by a $450 Qantas travel credit). For flexible points with no foreign fees, NAB Rewards Travel. For no annual fee, Kogan Money. If you ever carry a balance, a low-rate card such as the Amex Low Rate (10.99%, no annual fee) beats any rewards card.

Which credit card has the best sign-up bonus right now?

As at 29 October 2026, NAB Rewards Travel offers up to 180,000 NAB Rewards Points (120,000 after $5,000 spend in 90 days, 60,000 more after 12 months). Qantas Money Platinum offers up to 80,000 Qantas Points, with the full amount only for people who haven't earned Qantas Points on a card in the past 24 months. Offers change often; check the issuer's page.

Can I transfer Qantas Points to Velocity?

No. Qantas Frequent Flyer and Velocity are separate programs. Flexible bank programs such as ANZ Rewards and NAB Rewards can transfer to Velocity, but not between the two airline programs.

Are credit card points taxable in Australia?

Not when earned through personal spending, according to the ATO. Points earned through business spending can have tax consequences, so get advice if you put business expenses on a rewards card.

Is it worth getting a credit card just for the sign-up bonus?

Only if you can meet the spend requirement with purchases you'd make anyway, the bonus is worth more than the annual fee, and you pay the balance in full. Each application is recorded on your credit file, so frequent applications can affect future borrowing.

Related guides

Credit products involve risk. Read the Product Disclosure Statement and Target Market Determination before applying.

This article is for general information only and does not constitute financial, tax or legal advice. Individual circumstances vary. Consult a registered tax agent or licensed financial adviser before making decisions based on this information.