The Australian Government is introducing new rules from 1 January 2019, designed to help credit card holders better manage their credit card.
The changes described in the following FAQs will be automatically applied to credit cards from 1 January 2019.
Simplifying how we calculate interest free days
Under the terms of the credit card contract, cardholders are eligible for interest free days provided they:
- pay the closing balance stated on that statement of account in full by the due date; and
- paid the closing balance stated on their previous statement of account in full by its due date.
If they do not meet these conditions, you will not be eligible for any interest free days and are charged interest on any outstanding balance from the transaction date.
From 1 January 2019, although interest will still be charged on the outstanding balance if you are not eligible for interest free days, interest will apply from the day after the statement of account due date. This means you may pay less interest than now.