Gift cards on the national agenda - an update

It has been estimated that Australians purchase about $1.5 billion worth of gift cards annually.

Despite their popularity, gift cards have increasingly been the subject of complaints in recent years.  Common consumer concerns relate to:

·    expiry dates (a November 2010 survey by consumer advocate group, Choice, found that:

·    almost all gift cards Choice looked at expired after only one year;

·    of the survey participants, three out of four reported buying or receiving a gift card in the previous year but more than half of those reported that their card expired before they were able to use its full value);

·    at the time of the survey only one retailer, Bunnings, offered a gift card with no expiry date);

·    what happens to gift cards when the issuing business ceases to trade, and

·    who should pocket the interest that accumulates on unredeemed gift cards. 

It is also often the case that, if the full amount of a gift card is not used, consumers will not receive cash change for the remaining balance, leading to concerns about card issuers reaping windfall profits.

In addition, the terms and conditions for gift cards vary significantly between retailers, and consumers are not always provided with a copy of these prior to purchase. 

Cost of Living: Car Registration Fees

In Queensland, motor vehicle registration fees consist of three components:

(a) a base registration fee;

(b) a traffic improvement fee; and

(c) a compulsory third party (CTP) insurance charge. 

The Queensland Government receives the revenue generated by the base registration fee and the traffic improvement fee.  It does not receive the revenue from the third component as the CTP insurance premiums go directly to the nominated insurance provider.

Freeze on Car Registration Fees

During its 2012 election campaign, the LNP made a commitment to freeze family car registration for three years.  The LNP said that this proposal is intended to ease the cost of living for Queensland families by saving them $15 to $20 a year.