Supermarket gift cards and prepaid options in Australia: are they worth using?

Gift cards as a discount mechanism

Woolworths and Coles gift cards are occasionally available at a discount through employer salary packaging schemes, reward programs, cashback platforms and third-party gift card resellers. When that happens, loading grocery spend onto a card bought at a discount is a way to reduce what you effectively pay at the register.

This is general information about a shopping approach, not financial or tax advice. If you are using salary packaging arrangements, speak with your employer or a tax professional about what is appropriate for your situation.

Where discounted supermarket gift cards come from

Employer salary packaging: Some employers allow staff to purchase Woolworths or Coles gift cards through pre-tax salary, which can reduce the effective cost depending on your income and tax situation.

Cashback and reward platforms: Some platforms offer a small percentage return on gift card purchases. The discount is usually modest (1–5%) but consistent if you shop at the same chain regularly.

Third-party resellers: Sites that resell unwanted gift cards sometimes list supermarket cards below face value. Reliability varies—stick to well-known platforms and verify any balance before loading significant spend.

Promotions from the retailer: Occasionally supermarkets run promotions where buying a gift card earns bonus points or a spending credit. These are worth watching for if you already spend regularly at that chain.

Practical considerations

Gift cards do not earn loyalty points in most standard configurations—check the current terms before assuming your Everyday Rewards or Flybuys balance will grow normally. Our loyalty programs guide explains how member pricing and points work.

Gift cards also cannot typically be used to purchase other gift cards, fuel, tobacco or some alcohol products, depending on the retailer's terms.

When it makes sense

The clearest win is when you can consistently buy at a discount (through salary packaging, for example) and you shop at the same chain every week. Over the course of a year, a regular discount on your full grocery spend adds up.

For occasional small discounts from cashback platforms, the saving is real but modest—worth doing if the process is simple, not worth chasing if it requires significant time or changes your shopping behaviour.

When it does not add much value

If switching to gift cards changes which store you shop at or how you shop, the nominal discount may be offset by losing access to better specials at another chain. A quick price comparison on your regular items is a more reliable saving than a small percentage from a gift card scheme.