Is cashback or points better?

Cashback is simpler with guaranteed value. Points can be worth more but require optimization. Cashback is better if you want simplicity; points if you'll work to maximize them.

Do I pay tax on credit card cashback?

No - the ATO treats cashback as a rebate/discount on purchases, not as income. It's not taxable.

What's a good cashback rate?

1% or more on all purchases is solid. 2-3% on groceries/fuel is common for bonus categories. The best combinations can average 1.5-2% on all spending.

Cashback Calculator

Calculator

Calculate your annual cashback earnings from credit card spending

Free to useNo data storedAI insightsUpdated: February 2026

Cashback cards give you straightforward value - a percentage of every purchase back as cash. This calculator shows your total annual cashback and net value after fees.

Enter Your Details

Real-World Examples

Category Cashback Card

$3,000/month total. $600 groceries at 3%, $300 fuel at 2%, rest at 1%. $100 annual fee.

Inputs:

total:3,000groceries:600fuel:300fee:100

Grocery: $216/year. Fuel: $72/year. Other: $252/year. Total: $540. Net after fee: $440/year!

Frequently Asked Questions

Glossary

Cashback

A percentage of spending returned as cash - either as statement credit, check, or deposit.

Category Cap

Maximum spending that earns bonus rates in a category per quarter/year.

Rotating Categories

Bonus categories that change quarterly - must be activated each quarter.

Related Tools

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Annual Fee Calculator

Is your fee worth it?

Disclaimer: This calculator provides estimates only and should not be relied upon for financial decisions. Interest rates, fees, and policies change frequently. Always verify information with lenders directly. This is general information, not personal financial advice. Consider seeking advice from a licensed mortgage broker or financial advisor.

Last updated: February 2026