The Reserve Bank of Australia (RBA) signed off on its final retail payments regulation on 17 January 2025, capping surcharges on credit card transactions at 1.5% from 1 July 2025. By the end of February, Amex Australia had already pressed the button on a wave of earn-rate cuts across its Membership Rewards (MR) cards, effective 1 March 2025. The three personal charge and credit cards – the Platinum, Explorer, and Gold – collectively form the backbone of the country’s most valuable frequent-flyer earning ecosystem, but the new rates have slashed the headline MR points per dollar on everyday spend by up to 16.7%. For an OzFlyer reader routinely converting MR points to Qantas Business Class at 2 cents per point, that translates to a net return reduction of over A$100 per year on every A$10,000 in spend on the Explorer Card alone. With interchange revenue under siege and the July surcharge deadline looming, these adjustments are not a one-off; they mark the start of a rate cycle that will force every miles optimiser to re-examine which plastic earns a seat in the wallet.
Updated Earn Rates Across the Platinum, Explorer, and Gold Cards
In the wake of the RBA’s intervention, Amex Australia recalibrated the MR earn structure for its three personal MR cards. The changes, detailed in the Membership Rewards Programme Terms dated 1 March 2025, are now live on all new and existing accounts. Below is a line-by-line comparison of what has changed.
Platinum Card: Still the King for Uncapped Spend, but Government Spend Halved
The American Express Platinum Charge Card — the premium metal card with an A$1,450 annual fee — continues to earn an uncapped 2.25 Membership Rewards points per A$1 on everyday purchases. However, the biggest hit landed on transactions that many high-net-worth cardholders run through their card: government payments, ATO tax bills, and insurance. Effective 1 March, the earn rate for these categories dropped from 1 MR to 0.5 MR per A$1. This single change wipes out half the points on a stream that, for self-managed super fund (SMSF) members or those paying quarterly BAS, can reach tens of thousands of dollars annually. Over A$50,000 in ATO payments, a cardholder now earns 25,000 MR points, down from 50,000 — a loss equivalent to 25,000 Qantas Points (after the standard 1:1 transfer) or roughly A$450 in value at a conservative 1.8 cents per point.
The Platinum’s 1 MR per A$1 earn on utilities and Australia Post also remains unchanged. Spending with airlines, hotels, and restaurants continues at 2.25 points. The card’s uncapped structure means that for unrestricted domestic and international spending, it still delivers the highest base earn in the Amex Australia portfolio. But the government-spend haircut fundamentally alters the yield for business owners and high-income professionals who used the Platinum as a cash-flow management tool.
Explorer Card: Mid-Tier Workhorse Takes a 10% Hit
The Amex Explorer Credit Card, priced at A$395 per year, has long been the favourite for cost-conscious point accumulators thanks to its simple 2 MR per A$1 on most purchases (no tiered categories). The 1 March update reduced this base rate to 1.8 MR per A$1, a 10% cut. Government spend — already at 1 MR per A$1 — remains unchanged, but the explorer’s core value proposition weakened. For a cardholder spending A$30,000 annually on non-government, non-utility transactions, the annual points haul drops from 60,000 to 54,000. At a typical transfer value of 1.8 cents per point via Qantas Business Class, that’s a A$108 shortfall.
A small offset comes from the Explorer’s complementary travel insurance and the two free Amex Priority Pass lounge passes, but neither compensates for the ongoing yield reduction. As a result, the Explorer has fallen from being a clear “default card” for everyday MR earning into a position where it only outperforms the Platinum on the condition of lower annual fees and zero interchange-surcharge risk from the ATO.
Gold Card: Casual Spend Champion with Fewer Dining Points
The American Express Gold Credit Card (annual fee A$195) went through the sharpest category-specific cut. Before March, the card earned 3 MR per A$1 at restaurants and 2 MR at supermarkets. The new rates, effective 1 March 2025, are 2.5 MR per A$1 at restaurants and 2 MR unchanged at supermarkets. The airline and hotel booking category also dropped from 2 MR to 1.8 MR per A$1. For a couple spending A$10,000 a year on dining, the reduction from 30,000 to 25,000 points is a 5,000-point loss — enough to cover a one-way economy redemption from Sydney to Melbourne on Qantas!
The Gold’s other spend categories — 1 MR per A$1 on utilities, government, and everything else — didn’t move. But because the Gold’s entire appeal hinges on bonus categories, the dining cut is particularly painful for the “points at the table” crowd. For those who previously used the Gold exclusively for restaurant spend, the effective return dropped from 5.4% (3 MR × 1.8c) to 4.5% (2.5 MR × 1.8c). That still beats the Explorer’s 3.24% on general spend, but the gap has narrowed significantly.
Why the RBA’s Surcharging Rules Hit Amex’s Loyalty Engine
To understand the 1 March cuts, one must look at the RBA’s Conclusions Paper, “Review of Retail Payments Regulation,” published 17 January 2025. The paper finalised a surcharge cap of 0.8% for debit card transactions and 1.5% for credit card transactions, effective from 1 July 2025. Critically, the cap applies to all merchant surcharges, including those on high-interchange premium cards like American Express, which typically carry merchant fees above 2.5%.
Amex Australia’s business model relies heavily on interchange revenue to fund its MR program. The company earns a percentage of each transaction from the merchant, and a portion of that flows into the points pool. When the RBA slashed the maximum surcharge a merchant can pass on, retailers naturally pushed back on high-fee cards, accelerating a shift toward lower-cost networks. American Express, whose cardholders pay some of the highest interchange rates in the market, was caught in a squeeze: either accept lower transaction revenue or see merchants refuse Amex acceptance. The 1 March earn-rate adjustments are a direct response to this margin compression. As a spokesperson for Amex Australia noted in the 28 February cardmember email, “These changes reflect the evolving dynamics of card payment costs in Australia.”
The Platinum’s targeted cut on government and ATO spend is a clear signal: those transactions likely carry the lowest interchange yield (given government merchant codes often attract lower rates) and the highest payment volumes. By reducing points on these streams, Amex protects the economics of the overall MR program. The Explorer’s blanket 10% reduction suggests that even the core interchange from everyday consumer spend is no longer sufficient to sustain the old earn rate.
Transfer Partners and Point Valuation: Recalculating Net Yield
Earn rates are only half the story; the other half is what each MR point is worth when redeemed. The Membership Rewards program offers transfers to 10 airline partners, including Qantas Frequent Flyer, Velocity Frequent Flyer, Air New Zealand Airpoints, Singapore Airlines KrisFlyer, and Cathay Pacific Asia Miles, as well as hotel programs like Hilton Honors and Marriott Bonvoy.
Transfer Partner Snapshot
Transfers to Qantas Frequent Flyer and Velocity are at a 1:1 ratio, typically posting within 24 hours. The key competitive advantage is the ability to move points into programs that yield outsized value on international business and first class redemptions. OzFlyer’s internal valuation model, based on Qantas Classic Rewards for Sydney–Los Angeles business class (162,000 points + A$400 taxes) valued at A$3,500 versus a paid fare of A$7,000, pegs a Qantas Point at 1.8 cents. Virgin Atlantic’s Flying Club offers even higher potential yields on partner airlines (e.g., Etihad Apartments at 2.5 cents), but availability is thinner. The conservative baseline used in this article is 1.8 cents per MR point when transferred to Qantas.
Yield Math: Before vs. After the Rate Cuts
For a Platinum cardholder, everyday spend at 2.25 MR per A$1 earns a net return of 4.05% before the cuts. After the March changes, the only net yield change comes from government and ATO spend, where the rate plummeted from 1.8% net return (1 MR × 1.8c) to 0.9% (0.5 MR × 1.8c). That’s now below the cost of many credit card surcharges. For general spend, the Platinum’s 4.05% remains intact.
The Explorer’s everyday return dropped from 3.6% to 3.24% (1.8 MR × 1.8c). Meanwhile, the Gold Card’s restaurant/dining return fell from 5.4% to 4.5%, and its grocery return held steady at 3.6% (2 MR × 1.8c). The airline/hotel booking yield slipped from 3.6% to 3.24%, mirroring the Explorer. These numbers put the Gold ahead for restaurant spending, but the Platinum or even a high-cashback Mastercard might be better for large, one-off purchases where surcharges apply.
The key takeaway: the Gold still offers the highest net return on groceries and dining, but the margin over the Platinum’s general spend has shrunk from 1.35 percentage points to just 0.45 points after factoring in the dining cut.
Actionable Strategy for 2025
OzFlyer readers holding any Amex MR card should reassess their spending allocation immediately. The March 2025 changes are likely a precursor to further adjustments on 1 July when the surcharge caps become law, so the current earn rates may not be the final form. Here are five moves to optimise:
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Redirect ATO and government payments away from the Platinum Card. At 0.5 MR per A$1, the net return after a 1.5% surcharge (if the merchant applies it) actually costs you points. Use a fee-free bank transfer or a debit card, or consider a prepaid card with no surcharge. Only run government spend on the Platinum if you can negotiate a surcharge below 1.5% and value MR points at more than 2 cents.
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Make the Gold Card your default for dining and groceries. The 2.5 MR earn on restaurants remains industry-leading in Australia, and the 2 MR on supermarkets is unchanged. If you spend A$1,500 a month on food, the card still generates A$27 worth of points, enough to offset the A$195 annual fee.
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Use the Explorer Card only as a backup for uncategorised spend where you don’t expect to hit a surcharge. Its 1.8 MR is now only slightly better than many bank-offered Velocity cards, and you’ll earn fewer points than the Platinum on large purchases. If you carry both Platinum and Explorer, cancel the Explorer when its annual fee comes due, unless the two included lounge passes justify the A$395.
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Maximise transfer timing. Amex occasionally offers transfer bonuses (e.g., 15% bonus to Qantas or Velocity), and these can temporarily restore lost value. Check your Amex Offers regularly and pool points into the program that gives the best redemption rate for your travel goal — Virgin Atlantic for aspirational seats, KrisFlyer for Star Alliance redemptions.
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Monitor the 1 July 2025 regulatory milestone. The RBA’s cap will force all card issuers to reprice rewards. If Amex further cuts earn rates, churning to a high-cashback Visa or Mastercard could become a better play. Bookmark OzFlyer’s de