Westpac Rewards Slashed: Harsh Devaluation For Cardholders In August 2025
Westpac will slash credit card earn rates and introduce point caps from August 2025.
Westpac just dropped some major changes to its rewards credit cards, set to impact customers from 1 August 2025. Marketed under the guise of rewarding everyday spending, in reality, the changes are a sweeping devaluation of Westpac's reward credit cards and Altitude Rewards program. It's a hard pill to swallow for many customers, especially considering Westpac posted a record $6.99 billion profit last year.
All Westpac rewards cards are impacted, including those that earn Velocity Points and Qantas Points. Cardholders are essentially being asked to accept fewer rewards for the same spend, while the bank continues to rake in billions.
Westpac's New Credit Card Earn Rates
Below is a comparison of the current and new Westpac earn rates, per $1 spent;
Altitude Rewards Platinum
- Currently: 3 points (select airlines), 2 points (Uber, Spotify, Airbnb, food delivery), 1 point (other)
- New: 2 points (international), 1.25 (everyday), 1 (other), drops to 0.5 after $5,000/month
Altitude Rewards Black
- Currently: 6 points (select airlines), 2 points (Uber, Spotify, Airbnb, Myer, David Jones), 1.25 points (other)
- New: 3 (international), 2 (everyday), 1 (other), drops to 0.5 after $10,000/month
Altitude Qantas Platinum
- Currently: 0.5 Qantas Points per $1, up to $100,000 yearly
- New: 0.75 (international), 0.5 (everyday), 0.35 (other), drops to 0.2 after $5,000/month
Altitude Qantas Black
- Currently: 0.75 Qantas Points per $1, up to $250,000 yearly
- New: 1.2 (international), 0.8 (everyday), 0.5 (other), drops to 0.25 after $10,000/month
Altitude Velocity Platinum
- Currently: 0.5 Velocity Points per $1
- New: 0.75 (international), 0.5 (everyday), 0.35 (other), drops to 0.2 after $5,000/month
Altitude Velocity Black
- Currently: 0.75 Velocity Point per $1
- New: 1.2 (international), 0.8 (everyday), 0.5 (other), drops to 0.25 after $10,000/month
Westpac's New Everyday Spend Earn Category
Westpac will bring in a new "everyday spend" earning category that includes spending on everyday items, including groceries, petrol, eating out, and utilities. In these categories, you will receive a slightly better earn rate. But in most cases, this new and rewarding rate is just the old earn rate.
Below are some examples provided by Westpac of what is included in the new everyday spend category:
- Supermarkets - Woolworths, Coles, IGA, Harris Farm, ALDI
- Department stores - David Jones, Myer
- Petrol stations - Shell, Ampol, Caltex, BP
- Dining - restaurants, cafes, fast food, bars, hotels and entertainment venues
- Utilities - payments for water, gas, electricity, internet, mobile and streaming services (excluding BPAY payments).
Spending Caps Are Westpac's Final Insult
In a move sure to anger high-spending customers, Westpac will slap monthly spending caps on reward earnings;
- Platinum cards - $5,000 cap
- Black cards - $10,000 cap
After that, your earn rate plummets to a measly 0.2 to 0.5 points per $1 spent. That’s a severe downgrade and a stark contrast to the uncapped earning potential many cardholders previously enjoyed.
Is It Time To Rethink My Wallet?
Let’s be blunt - if you’re paying an annual fee and not earning competitive points, you’re subsidising Westpac’s bottom line. These changes reward the bank more than they reward you, and it could be time to compare alternatives.
For example, the Amex Velocity Platinum and Qantas Amex Ultimate both earn 1.25 airline points per $1 spent in most categories. For those looking at a flexible rewards card, Amex Platinum or Amex Essential would be the way to go.
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