Churning—once a niche strategy among points enthusiasts—has gone mainstream in Australia. In 2025, more Aussies are jumping between credit cards, bank accounts, and even insurance policies to cash in on sign-up bonuses, rewards points, and cashback offers. But while the perks are tempting, successful churning takes planning, discipline, and a keen eye for policy changes.
What Is Churning?
Churning refers to the practice of regularly opening and closing financial products to take advantage of introductory offers and rewards. Most commonly, it involves:
- Applying for new credit cards to earn sign-up bonus points
- Switching transaction or savings accounts for cashback or bonus interest
- Rotating insurance or utilities providers to access new-customer discounts
For example, a savvy churner might open a new credit card that offers 80,000 bonus Qantas Points for spending $3,000 in the first 90 days, use the card to hit the target, then close the account before the annual fee is due. Then, they might move on to a bank account offering $150 for switching salary deposits.
Churning Trends and Policy Updates in 2025
The landscape for churning has shifted in 2025, with banks and card issuers tightening their rules. Here are the key trends and policy changes to watch:
- Longer Exclusion Periods: Most major banks now require you to wait 12-18 months after closing a card before you’re eligible for another sign-up bonus. For example, Westpac and NAB updated their terms in February 2025, increasing the exclusion window from 12 to 18 months.
- Stricter ID and Income Verification: Anti-money laundering (AML) and responsible lending rules have made it harder to open multiple accounts quickly. Expect more frequent requests for payslips and digital identity checks.
- Credit Score Impacts: Each application leaves an enquiry on your credit file. While one or two enquiries are manageable, frequent applications may cause lenders to view you as a higher risk, potentially affecting your ability to get a home loan or car finance.
- Targeted Offers: Banks are increasingly using customer data to personalise offers, so existing customers may see fewer or less generous deals than new-to-bank applicants.
Despite these hurdles, churning remains viable for those who plan carefully and keep up with the latest offer terms.
How to Churn Responsibly: Tips and Real-World Examples
Churning can deliver big rewards—but only if you manage it smartly. Here’s how Australians are making it work in 2025:
- Track Your Applications: Use a spreadsheet or app to record dates, bonus requirements, annual fees, and cancellation deadlines.
- Meet Minimum Spend Requirements: Only apply if you know you can easily meet the spend (e.g., $3,000 in three months) without overspending or incurring interest.
- Monitor Your Credit Score: Use free services from Equifax or Experian to keep tabs on your file. Leave at least three months between applications if you’re planning a big loan soon.
- Plan for Taxes: Some rewards, like cashback, may be taxable if you’re using the card for business purposes. Always check the ATO’s latest guidance.
Case Study: Jess, a Melbourne-based teacher, churned three credit cards in 2024-2025, collecting over 200,000 frequent flyer points—enough for a return business-class flight to Singapore. She tracked her applications, closed each card before the annual fee, and spaced her applications to protect her credit score.
Risks and What to Watch Out For
Churning isn’t for everyone. The main pitfalls include:
- Debt Traps: Failing to pay your balance in full wipes out any rewards with interest charges.
- Missed Deadlines: Forgetting to cancel before the annual fee can eat into your gains.
- Offer Changes: Banks can pull or change offers at any time, especially as churning becomes more popular.
It’s vital to stay on top of the latest terms and use churning as a tool—not a crutch.
