NSW retailers required to put minimum three-year expiry date on gift cards

An extended period to redeem gift cards has been granted to customers in some locations across Australia. New South Wales has become the first state to roll out legislation allowing three-year expiry dates on vouchers and gift cards.

For several years, shoppers have had to comply with a short timeline for gift card redemption. Not adhering to the deadline means failure to use these cards.

But on Saturday, the changes in NSW came into force. Other Australian states and territories are yet to follow suit.

Retailers in NSW are now required to put a minimum three-year expiry date on cards sold in the state, which is triple the usual 12-month limit. The changes also ban businesses from applying fees after the cards have been bought, thus affecting the remaining balance.

Minister for Innovation and Better Regulation Matt Kean said that the changes aim to give consumers the confidence that they are getting value for their money every time they purchase gift cards. Amid the changes, Consumer group Choice has urged everyone to pay attention to the small print on the back of the cards. Consumers are also advised to be mindful that gift cards can be “pretty poor value presents.”

“When you buy a gift card you’re just putting tricky terms and conditions on your hard earned cash,’’ News.com.au reports Choice’s spokesman Tom Godfrey as saying. He added that gift cards are a gift horse for retailers, citing activation fees and short expiry dates.

A number of other retailers across Australia have rolled out unlimited card expiry dates. Retail company Woolworths has bid farewell to expiry dates on cards already issued as well as on new cards.

Starting at the end of March, all customers with active Woolworths Group gifts cards are allowed to use them at any time. Consumer groups have applauded such move.

According to Choice estimates, Aussies spend around $2.5 billion per year on gift cards. Around $200 million, however, is believed to be lost every year.

A Choice survey in 2014 showed that one-third of respondents had lost the full value of at least one gift card in the previous three years. Strict time frames are expected to still apply in some cases such as in retailers that provide “in-store credits” and some that offer “gift cards as part of a promotion."