How to build a frequent flyer points war chest with Qantas and Virgin Australia
Qantas and Virgin Australia’s reward programs aren’t just for frequent flyers — Aussies are using everyday spending and these savvy hacks to earn big travel perks. Here’s how to join them.
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Australian airports are bracing for one of the busiest travel periods of the year, as travellers flock interstate or overseas this Easter despite cost-of-living pressures and a weak dollar — with many skipping full fares by cashing in frequent flyer points earned not in the skies, but at the checkout.
Once the domain of high-flying execs and serial holiday-makers, loyalty programs like Qantas Frequent Flyer – the largest rewards program in Australia – and Virgin Australia’s Velocity have become powerful tools for everyday spenders.
These days, it’s your grocery bill, not your boarding pass, doing the heavy lifting.
With the right moves, a week’s worth of shopping or a new credit card could put a business class seat within reach.
We’ve broken down the smartest ways to earn points without flying — and the best-value redemptions when it’s time to book.
From big sign-up bonuses to supermarket hacks, here’s how to get the most out of your points.
“More points today are earned on the ground than in the air,” says Adele Eliseo, founder of The Champagne Mile and a leading expert on frequent flyer programs in Australia.
“Rewards credit cards are the primary engine — especially those linked to Qantas and Velocity, or flexible rewards programs like American Express Membership Rewards. Everyday categories like fuel, groceries, rideshare, insurance, and utilities often offer points through program partnerships.”
For business owners, Ms Eliseo said the opportunity is even greater.
“Spending through credit
and charge cards or business payment portals can deliver significant points value at scale.”
Sign-up bonuses remain one of the fastest ways to build a points war chest — if you play it right.
“It’s a great strategy, but only if you pay your balance in full every month,” Ms Eliseo said. “Otherwise, the interest will wipe out any value you’ve gained from the points.”
Fees matter too.
The Qantas Premier Titanium card offers 150,000 bonus points — enough to fly business class to Europe — and 20 per cent bonus status credits, but comes with a $1,200 annual fee.
ANZ’s Frequent Flyer Black offers 130,000 points for $425.
Velocity chasers can tap the American Express Velocity Business card (170,000 bonus points) or the Westpac Altitude Black (120,000 bonus points, plus perks like lounge passes and Economy X upgrades).
“Make sure the ongoing earn rate matches your spending habits,” Ms Eliseo said.
“For high spenders, it’s often more valuable than the sign-up bonus itself.”
Many Australians also engage in credit card churning — opening and closing cards to collect bonuses.
Some users earn over 500,000 points a year before factoring in any other earn method, with that figure doubling for couples.
Most banks exclude customers from repeat bonuses if they’ve held a card with the same provider in the past 18–24 months.
It all starts with earning smart
For Qantas loyalists, booking the right flight makes a big difference — especially sticking to “QF”-coded flights, which typically earn the highest return.
A Qantas-coded Emirates flight to Europe earns more points and status credits than the same “EK”-coded flight.
Tiered status boosts returns further, with Gold and Platinum members earning up to double the base rate.
Qantas also runs double points promotions throughout the year.
Velocity members can tap similar benefits, earning on Virgin flights and partners like Singapore Airlines and Qatar Airways, depending on fare class, distance, and status.
Understanding your points currency
Not all points are created equal — and transfer rates can quietly shrink your stash.
“While direct-earn Qantas and Velocity cards are relatively straightforward, bank rewards programs can be murkier,” Ms Eliseo said.
“One bank rewards point might only convert to 0.5 or even 0.33 frequent flyer points. That can really eat into your redemption value.”
She compares it to investing:
“Diversifying across programs — or using a flexible currency like Amex Membership Rewards — gives you more options and protects against changes in value or availability.”
Redemption sweet spots: aim high, fly higher
The best value for frequent flyer points is found in the pointy end of the plane.
A one-way Qantas Business seat to London costs 144,600 points plus taxes — versus a cash fare of over $8,000. That’s a return of more than 5 cents per point.
“Premium flights and upgrades usually offer the best returns — sometimes five cents per point or more,” Ms Eliseo said.
“By comparison, redemptions for gift cards or merchandise often yield less than half a cent per point.”
Qantas’ Points Club and Points Club Plus reward high ground earners.
Spend 150,000 points in a year to unlock lounge passes, bonus earn rates and shopping perks. At 350,000, Points Club Plus offers benefits that rival Gold frequent flyer status.
Don’t hoard — redeem wisely
Holding onto points for too long can backfire, Ms Eliseo warned, with airlines often tweaking earn rates or redemption costs.
In January, Qantas announced changes to take effect from August, including higher points requirements for upgrades and more expensive carrier charges on some routes.
It has also increased the number of points flights in the air will earn.
“Points are a financial asset, but unlike most assets, they don’t grow over time. Loyalty program rules can change, and devaluations or expiry are always a risk. It’s smarter to earn and burn, rather than hoard,” she said.
How to earn without flying:
You can rack up points on everything from your grocery shop to your power bill:
Banking: AMP customers can earn one Qantas point for every $10 held in its Everyday Account or Everyday Business Account, up to a balance of $5m, or 500,000 points a month.
Credit cards: ANZ Frequent Flyer Black credit card offers 1 point per $1 and up to 130,000 bonus Qantas points after $5000 is spent, while Westpac Altitude Velocity Black offers new customers up to 120,000 bonus Velocity after $6000 in purchases.
Groceries: Transfer 2,000 Flybuys or Woolworths Everyday Rewards points into 1,000 Velocity or Qantas points. Savvy shoppers double up with bonus offers on groceries and gift cards.
Qantas Wine: The Takeoff Premium Red Dozen at $510 per case offers 25,000 bonus points and equates to 49.02 points per dollar – the best offer available, according to FlightFormula, while Points Club and Qantas Wine members can earn triple points per dollar.
Utilities: Swapping to Qantas Health Insurance can see households earn up 130,000 in points for joining prior to May 27, while Red Energy offers up to 15,000 bonus points upon sign up and 2 points per every $1 spent on power. AGL offers up to 35,000 Velocity Points when customers switch to one of its plans
Retail: Qantas and Virgin shopping partners with brands like The Iconic and Apple, offering 1–10 points per $1.
Originally published as How to build a frequent flyer points war chest with Qantas and Virgin Australia
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