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Major changes to Gift Card rules to roll out Australia-wide

Only months ago NSW and South Australia officially changed the minimum expiry date from 1 year to 3 years on all gift cards sold & used within the states. And now, it looks like the rest of Australia is about to follow suit.

With the legislation approved in Sept 2018 and scheduled to roll out from August 2019, there may be some small changes to come from Liberals MPs who are concerned with how small businesses will fare. According to Fairfax, retailers who break the rule or don’t display the expiry date clearly will face a maximum $30,000 fine.

The change has been a long time coming

Shoppers have been frustrated by the 1 year minimum expiry on gift cards for years with the idea for the 3 year minimum expiry first being tabled in 2012. According to research from  finder.com.au, over $148 million has been wasted on expired gift cards in the last year alone. The Morrison government is now taking steps to ensure that the money your family & friends spend on gift cards for you – is spent.

Consumer groups have rated these minimum expiry terms as one of the top frustrations consumers have with Australian retailers. And with countries like the U.S. imposing a five year minimum term for all gift cards – the change seems to have been a long time coming.

While most retailers currently apply the minimum requirement of 1 year, bigger retailers like Woolworths, Bunnings & JB Hi-Fi have already made changes, removing expiry dates from their gift cards all together. But there are worries the changes might mean big issues for smaller businesses & their cash flow.

Get expert help with your new gift cards

If you would like expert help on putting together the terms and conditions for your new gift cards, talk to the Redegroup today on 1800 815 512. We know the ins and outs of the new changes and are ready to help you!

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