I'm sure most of us have felt the frustration of not getting to use a gift card before it expires. Or having to rush in and end up buying something that in hindsight you wish you hadn't. That's all about to change, at least in NSW. And I'm sure it won't take long for retailers to adopt the three year expiry extension on gift cards all around the country. It will create some disruption and compliance costs for retailers however, putting further pressure on their margins.
Legislation passed by the NSW Government in October will require gift cards sold in the state to carry a minimum expiry period of three-years from 31 March 2018, tripling the 12-month period that’s widely considered to be the industry standard. Woolworths also announced yesterday that it would be extending its gift card expiry date nationally on Woolworths Group gift cards from 31 March next year. There are also concerns shared by Naomi Simson, founder of Red Balloon and the Australian Retailers Association over the implications extended expiry dates may have for accounting conventions and taxation requirements.