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Important changes to your credit card

Important changes to your credit card effective 1 January 2019    
We will shortly change the way we calculate interest on purchases made using your credit card account.

The Australian Government has recently passed new legislation which will change the way in which we calculate interest charges on purchases you make using your credit card.  These changes will take effect from 1 January 2019.

What this change means for you

Where you don’t pay, in full, the closing balance on your current statement of account by its due date you are currently charged interest on purchases on your current statement from the purchase date noted on your statement.

From 1 January 2019 the above situation will change so that if you don’t pay the closing balance of your current statement in full by the due date, instead of interest accruing on purchases from the date of purchase, interest will only accrue on purchases from the day after the payment due date for that statement. Of course for you to obtain this benefit you must have previously paid the full balance outstanding on your previous statement of account.

In the situation described above, this will reduce the amount of interest charges you have to pay.

Importantly, if you pay the full balance owing each month by the due date, you will still get the benefit of the full interest free period on purchases of up to 55 days.

Below is a worked example of how your credit card account will work from 1 January 2019.



In this worked example:

A $100 purchase is made on the 13th of the month. This purchase will have an interest free period of 42 days. (i.e. up until the payment due date on the 24th of next month).
On the due date of the current statement the minimum payment amount of $10 is made, which leaves an outstanding balance of $90.
Interest will be calculated on the $90 balance from 25th of the month and will continue to be charged until the credit card account balance is paid in full.

Credit Card Conditions of Use

Our Visa Credit Card Conditions of Use will be amended to incorporate these changes, effective from
1 January 2019, and can be viewed in detail by visiting our website at

Further information

If you have any questions about how the new interest calculation method works you can call us on
1800 033 139 or visit any Defence Bank branch.

Call 1800 033 139
BSB 833-205