Several major Australian banks are reducing complimentary travel insurance benefits attached to credit cards ahead of Reserve Bank of Australia payment reforms taking effect from 1 October 2026, according to comparison site Comparetravelinsurance.com.au.
RBA reforms prompt insurance cutbacks
The RBA reforms will remove card payment surcharges and reduce interchange fees banks can earn from card transactions. With reduced revenue from card transactions, several banks have adjusted the complimentary travel insurance benefits bundled with eligible cards.
According to Comparetravelinsurance.com.au, NAB removed complimentary international and domestic travel insurance from a number of cards from 15 May 2026, while other NAB cards now carry a shorter international cover period. Westpac is scaling back its complimentary international policy from 1 October, removing trip cancellation, travel delay and luggage cover. ANZ has increased the excess on eligible international claims from $350 to $500, while CommBank is restructuring its credit card and rewards offering from 1 October.
Comparetravelinsurance.com.au marketing director Natalie Smith said travellers relying on card-based cover should not assume their benefits remain unchanged.
“If you’re relying on your credit card insurance for an upcoming trip, don’t assume you’re still eligible for the same benefits,” Smith said.
“Check your current policy carefully, including what is covered, the limits and excesses that apply, and whether you need to meet any conditions to activate your cover.”
Advisors face client queries on cover gaps
For travel advisors and agencies, the changes create a servicing consideration for clients who assume credit card cover is sufficient for an upcoming trip. Comparetravelinsurance.com.au said eligibility can depend on factors including whether a minimum trip spend was made on the eligible card, whether cover needs to be manually activated before departure, and whether the specific card tier still qualifies for the benefit.
The company recommends travellers confirm medical cover limits, applicable excess, and whether cancellation, luggage and delay benefits remain included, along with whether pre-existing conditions are covered and need to be declared. Smith noted that in some cases a standalone travel insurance policy may offer more comprehensive protection than a scaled-back card benefit, a consideration advisors may wish to raise with clients who have historically relied on complimentary cover rather than purchasing insurance directly.
