New Gift Card Laws – Expiry Dates

Written by: The Institute of Certified Bookkeepers

New Gift Card Laws – Expiry Dates

The new laws apply to all gift cards and vouchers sold from 1 November 2019 onwards. Any gift card sold before 1 November 2019 date will continue to carry the same expiry period and fees as applicable at the time of purchase. The key changes of the new gift card laws are:

  • a mandatory minimum three year expiry period from the date the card is sold to a customer
  • gift cards must clearly show the expiry date
  • most post purchase fees can no longer be charged, including activation fees, account keeping fees and balance enquiry fees

The new law applies to all gift cards or vouchers sold on or after 1 November 2019, unless specifically excluded. This includes gift cards for online stores that trade in Australia.

The three year requirement does not apply to gift cards that are:

  • able to be reloaded or topped up
  • for a good or service available for a limited time where the card or voucher expires at the end of that period
  • supplied to a purchaser of goods or services as part of a temporary marketing promotion
  • donated free of charge for promotional purposes
  • sold for a particular good or service at a genuine discount
  • supplied as part of an employee rewards program
  • given as a bonus in connection with a purchase of a good or service for use in the same business (customer loyalty programs)
  • second-hand gift cards

If you breach the laws you could be fined $30,000 in the case of a body corporate or $6,000 for individuals.

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