A good travel credit card is one of the most powerful tools an Australian traveller can have — used properly, it earns free flights, provides travel insurance and eliminates international transaction fees. Used carelessly, it costs significantly more than it saves. Here's how to navigate the Australian travel credit card market in 2026.
The Two Main Points Currencies for Australians
Most Australian travel credit cards earn points in one of two ecosystems:
Qantas Frequent Flyer: 15+ million members, Australia's largest program. Qantas Points can be redeemed for Qantas flights, Jetstar flights, hotel stays, car rental and partner airline flights via oneworld alliance. Best redemption value is business class on partner airlines.
Velocity Frequent Flyer (Virgin Australia): Smaller program but often offering better value for economy redemptions. Velocity Points convert to Virgin Australia flights, Singapore Airlines Krisflyer, Etihad and other partners. The Singapore Airlines partnership is particularly valuable for Australians flying to Asia or Europe.
Some cards earn transferable bank points (Amex Membership Rewards, ANZ Rewards) that can convert to either Qantas or Velocity — these offer the most flexibility.
Best Cards for Earning Qantas Points
Qantas American Express Ultimate — Best overall Qantas card
Earn rate: 1.25 Qantas Points per $1 on everyday spending. Welcome bonus: typically 100,000–200,000 points for spending $3,000–5,000 in the first 3 months (varies with promotions). Annual fee: AUD $450. Included benefits: two Qantas Club lounge passes, travel insurance, Qantas Club access upgrades. The welcome bonus alone is worth AUD $1,000–2,000 in flight value and often exceeds the annual fee on its own.
Westpac Altitude Black Qantas — Best high-earn-cap card
Earn rate: 1.0 Qantas Point per $1 up to $10,000/month (then 0.5 points). Useful for high-spending months (large purchases, business expenses). Annual fee: AUD $295 (often discounted in the first year). Travel insurance included.
NAB Qantas Rewards Premium — Best for lower annual fee
Earn rate: 0.66 Qantas Points per $1. Annual fee: AUD $250. Lower earn rate but also lower annual fee — good for moderate spenders who want Qantas points without the premium card cost.
Best Cards for Earning Velocity Points
Virgin Australia Velocity High Flyer — Best overall Velocity card
Earn rate: 1.0 Velocity Point per $1. Annual fee: AUD $289. Includes two Virgin Australia lounge passes, travel insurance. Welcome bonus: typically 80,000–100,000 Velocity Points.
ANZ Frequent Flyer Black — Strong welcome bonus
Earn rate: 1.0 Qantas Point per $1 (also transfers to Velocity at a rate). Welcome bonuses are frequently generous (100,000+ points). Annual fee: AUD $425. Travel insurance included.
Best Cards for International Travel — No Foreign Transaction Fees
If you're not focused on points and primarily want to avoid the standard 3% international transaction fee, these cards are the best options:
Bankwest Zero Platinum Mastercard
No international transaction fees, no annual fee. Does not earn points. The best pure zero-fee option if you just want to spend overseas without surcharges. No annual fee at all.
Wise Travel Card
Technically a debit card, not a credit card, but worth including. Converts at mid-market exchange rate with 0.5–1.5% conversion fee (far better than the 3% most banks charge). Holds multiple currencies. The Wise card is what experienced Australian travellers use for daily spending abroad.
Revolut
Similar to Wise — multi-currency card, good exchange rates during market hours (a small markup applies on weekends). Free tier available; paid tiers remove the small weekend markup.
The Credit Card Strategy — Welcome Bonus Maximisation
The most effective approach for Australian travellers who are financially disciplined (paying the balance in full every month, no exceptions):
- Open a premium points card with a strong welcome bonus
- Spend the minimum qualifying amount in the first 3 months to earn the bonus
- Continue using the card for everyday spending for 11 months
- Before the second annual fee is charged, evaluate whether to keep or cancel
- If closing, apply for a different card with a fresh welcome bonus
Executed carefully, this approach generates 150,000–300,000 bonus points per year, worth AUD $1,500–6,000 in business class flight value. This is how experienced Australian points enthusiasts fund their travel.
Critical caveat: This strategy is only appropriate if you pay the full balance every month without exception. Credit card interest rates (18–22% in Australia) eliminate any points value rapidly. If there's any risk of carrying a balance, the strategy doesn't apply to you.
Travel Insurance on Credit Cards — Is It Enough?
Many premium Australian credit cards include complimentary travel insurance. Coverage quality varies significantly:
- Most require you to purchase flights or accommodation on the card to activate coverage
- Medical limits range from AUD $500,000 to unlimited — check carefully
- Pre-existing conditions are often excluded
- Some policies have age limits (60 or 65) for full coverage
For short trips to destinations without extreme medical costs (NZ, Pacific Islands, Europe), credit card travel insurance is often adequate. For longer trips, high-risk destinations or anyone with pre-existing conditions, supplement with a standalone policy.
The Cards Worth Having in 2026
The Qantas American Express Ultimate (AUD $450/year annual fee) is the benchmark premium travel card for frequent flyers -- 1.25 Qantas Points per AUD $1 on general spending (2.5 points on Qantas), two Qantas Club lounge passes per year, comprehensive travel insurance, and a 100,000+ point welcome bonus for new cardholders meeting the minimum spend. The annual fee is justified by the lounge passes alone (AUD $55 each at the gate) plus the insurance value. The Bankwest Breeze Mastercard (no annual fee) is the zero-fee benchmark -- no international transaction fees, no annual cost, adequate for travellers who don't value points programmes. For the middle market, the ANZ Rewards Black (AUD $375/year, flexible rewards redeemable with multiple airlines and retailers, travel insurance included) suits travellers who want benefits without the Qantas ecosystem lock-in.
American Express Acceptance in Australia
American Express cards have historically had lower merchant acceptance than Visa and Mastercard in Australia, though acceptance has improved significantly with the tap-and-pay era. The practical reality in 2026: major retailers, supermarkets (Woolworths, Coles), airlines, and most restaurants accept AMEX. Some smaller merchants, regional businesses and occasional international destinations have lower acceptance rates. The standard advice: hold an AMEX as your primary travel card and a Visa/Mastercard zero-fee card as backup. The ING Orange Everyday Visa debit card (free international transactions, ATM fee rebates globally) serves perfectly as the zero-fee backup.
The 2026 Travel Credit Card Market Update
The Australian travel credit card market has seen meaningful changes since 2024: American Express has increased the Platinum Card's annual travel credit from AUD $300 to AUD $400, making the effective net fee (after travel credit) AUD $1,050 for cardholders who use the full credit -- still the highest-value travel card in the market for frequent international travellers who maximise the Priority Pass, insurance, and rewards benefits. The Qantas Premier Titanium (AUD $1,200 annual fee, 1.5-2.5 points per dollar, status credits earn, complimentary Qantas Gold status for the first year) has emerged as the premium alternative for Qantas loyalists. The mass-market travel credit card tier has become more competitive with NAB, ANZ, and Westpac all introducing stronger points earn rates in 2025. The 28 Degrees Mastercard remains unchanged as the zero-fee, zero-foreign-transaction-fee essential travel companion card -- the product that no international trip should leave home without regardless of which primary points card is held.