Loyalty programs have become as much a part of Australian retail as the weekend sausage sizzle. But with new privacy laws, digital wallets, and inflation-driven price hikes, it’s fair to ask: Are loyalty schemes still worth your time—or just a clever way to harvest your data?
The Loyalty Landscape in 2025: What’s Changed?
From supermarket flybuys to Qantas Frequent Flyer points, loyalty programs have evolved rapidly. According to the Australian Loyalty Association, over 85% of Aussies are members of at least one program, and the average person juggles five or more memberships. But 2025 has brought some major shifts:
- Personalised offers: AI-driven targeting means offers are more tailored, but also more invasive. Expect your phone to buzz with deals as soon as you walk into a store.
- Open banking integration: Many loyalty programs now link directly to your bank account or payment app, automating point-earning and redemption.
- Privacy regulations: New amendments to the Privacy Act require clearer consent and give you more control over your data, but also limit the kind of rewards some programs can offer.
- Inflation impact: As prices rise, many programs have devalued points or increased redemption thresholds, making it harder to score that free coffee or flight upgrade.
Real-world example: In early 2025, Woolworths Everyday Rewards overhauled its program, introducing tiered point multipliers for high spenders but reducing the value of basic redemptions. Meanwhile, Qantas Frequent Flyer added new partners in the travel and fintech sectors, but raised the number of points needed for popular domestic flights.
How to Maximise Loyalty Value (And Avoid the Pitfalls)
Not all loyalty programs are created equal. The smartest savers treat loyalty like a side hustle, not a hobby. Here’s how:
- Stack your rewards: Look for programs that let you double-dip—like earning supermarket points plus credit card rewards on the same shop.
- Redeem strategically: Cashing out points for everyday items (like $10 off your groceries) often delivers better value than saving for big-ticket rewards, which can be subject to blackout dates or inflated point prices.
- Watch for expiry dates: Many programs now have rolling expiry policies. Set calendar reminders so your points don’t quietly disappear.
- Opt out of data sharing: Under new privacy rules, you can often limit how much data you share. This might mean fewer targeted offers, but more peace of mind.
- Don’t chase points at any cost: Buying things you don’t need just for the sake of points is a fast track to blowing your budget.
Example: Sarah, a Sydney-based teacher, uses her supermarket and fuel loyalty cards but only redeems points for direct discounts. She avoids specialty programs that require high annual spend or complex redemption rules.
The Future: Are Loyalty Programs Still a Smart Play?
The answer depends on your spending habits and how much you value your privacy. For regular shoppers who pay attention and keep their details up to date, loyalty programs still offer genuine savings—just less than a few years ago. For occasional users, the effort may no longer justify the reward.
- Look for simplicity: Programs that automatically apply discounts or rewards (like digital wallets linked to loyalty cards) are winning over time-poor Aussies.
- Watch out for “junk rewards”: Some programs have responded to the 2025 cost-of-living crunch by flooding members with low-value offers. Focus on programs that offer meaningful, regular savings.
- Be mindful of new entrants: 2025 has seen fintechs and BNPL providers launch their own loyalty schemes, sometimes with generous sign-up bonuses—but read the fine print on fees and data sharing.
In 2025, loyalty is less about blind brand allegiance and more about strategic, informed participation. Think of loyalty programs as a tool—not a guarantee—for squeezing extra value from your everyday spending.
