Considering spending 825,000 points on Qantas Club membershi

Discussion in 'Your Questions' started by one9, Oct 6, 2005.

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  1. one9

    one9 Active Member

    Sep 14, 2005
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    Hi,

    I am considering spending 825,000 points for lifetime Qantas Club membership, and are interested in hearing anyones views on this.

    At the momment, I am an infrequent flyer, with Bronze status.

    As I have a large amount of frequent flyer points, whereever an award flight is available, I will book the award flight - thus earning no points or status. I earn my points through credit card spending. I use two credit cards (NAB Ant Gold Amex & CBA Platinum), and earn approximately 1.2 million points a year.

    Whilst I understand some people might say that you can get more value than $4200 (life membership fee in dollars), from 825,000 points, I do not think paying $4200 is worth it for me.

    Of course, thinking of my most recent flight, which was an award flight with Cathay Pacific, I would not have been able to access lounge even if I was a Qantas Club member as I would only be Bronze. Do you always need to show your airline ticket when entering the lounge? Any chance of a bronze member with a Qantas Club card being able to enter a Qantas lounge when flying on Cathay Pacific?

    But I think I will be booking flights directly with the credit card company, rather than converting points more and more as limited frequent flyer seats are available. This should help me to start getting some status.
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    I have some concerns with keeping too many points on my credit card, as officially points are not meant to be earned on credit cards for business spending. I dont think the banks care, but I dont want them wiping all my points.

    And lastly to remember, whilst I spend a lot on my credit card, these are business purchases for my small business. My personal income is only around 60K a year. And I am young - in my 20's.
     
  2. Karen

    Karen Intern

    Mar 4, 2005
    58
    0
    Sydney
    You need a crystal ball

    Hard to say whether its worth it or not. Say you live for another 60 years, and you travel 2 times a year on average druing that time. At the Qantas club you have an average of 4 beers each time, you just paid $4000 odd for 960 beers. Not worth it in a month of Sundays I'd say.

    Even if you convert it to reward pass you're going ot get $5,500 worth of value. So I'd say the QP is not a very good deal.

    You also need to consider that it is very likely the ATO would consider 1.2 million points a year to be assessable for Income Tax as it is primarily derived through your business transactions.
     
  3. Maca44

    Maca44 Established Member

    Sep 2, 2005
    1,248
    185
    Sydney
    If you have 825K ff points to burn and you don't think you will be able to use them for flights, then do it. However, from a personal point of view if you earn that many points per annum, when you do fly "infrequently" you would no doubt be flying business or first class and have access to the lounge/s in any event.

    You also mentioned that you flew Cathay Pacific on your most recent flight so I assume that with so many points to your credit you would have used some of them and flew business or first class, and again you would have had access to the Cathay lounge which, some might say, are better than QF lounge.
     
  4. browski

    browski Established Member

    Sep 8, 2004
    1,460
    396
    Melbourne
    Paying 825000 points for $4200 lifetime QC will realise your return at .51 cents per points.

    Redeeming economy flights will get you around 1 cent per point. Redeeming 1st class tickets might get you up to 5 cents per point - and this will also get you access to all lounges, I guess.

    If you have more points then you can throw a stick at then buy the life membership. Best value is Business/First class redemptions however.

    But...... my gut feeling is the best use of those points is to redeem for your folks 2 return 1st class tickets anywhere and get paid with a lifetime of your mum's sunday roast dinners and free lifetime access to the old man's beer fridge.

    Good luck.
     
  5. BlacKnox

    BlacKnox Active Member

    Jan 29, 2005
    732
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    Well said browski :!: .

    If you're not flying frequently, then the QC is a bit of a waste IMHO.
     
  6. QF WP

    Moderator

    Jun 20, 2002
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    I'd agree with the other posters, I think you're crazy to spend 825,000 points for Lifetime. As you are a low-status but high point earner, then choosing points to "buy" the award seats is probably one of your best options.

    If I were you, I'd be paying for economy seats and where available (on QF sectors) trying to get upgrades.

    Karen gives you some salient details on the taxation consequences.
     
  7. NM

    NM
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    Aug 27, 2004
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    Remember that Qantas Club membership is tax deductible, and a Life membership is deductible over 10 years, making it $420 per year tax deduction for 10 years.

    If all your trips are international, and with the number of points you have, you can just book business or first class and get lounge access that way.

    Otherwise, only you can put a value on the points you have and whether it is a good use of your points.
     
  8. Karen

    Karen Intern

    Mar 4, 2005
    58
    0
    Sydney
    Maybe you need to look at it laterally

    You could also just NOT transfer the points to Qantas and use them for

    1. 41 nights in a Radisson hotel
    2. 191 trips to the movies with you and a significant other
    3. $5288 worth of free petrol at Caltex
    4. 27 cases of premium mixed wine (good choice IMO)

    or, my personal favourite

    5. Adopt me as your cousin and transfer them ALL TO ME! I'm sure I could find a better use for them than buying a lifetime membership to something I may never use.
     
  9. bigjobs

    bigjobs Active Member

    Jun 4, 2005
    686
    60
    use them on flights i say. you can wait in a standard lounge/departure gate if you are going to free. it's never that long. QC/QP is not all its cracked up to be really ...
     
  10. JohnK

    JohnK Veteran Member

    Mar 22, 2005
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    Last year I went from KUL-SIN and arrived at ~3:00pm. Since my flight SIN-SYD was ~8:00pm I used my free once a year QP pass for achieving PS. It was OK until around 5:00pm. Then all of a sudden could not move. There was 2 people sitting on most seats and others sitting on the floor. There are something like 7 QF/BA flights all leaving around the same time. Singapore may not be a good example but still not a good experience.

    I certainly hope that the business/first class lounges are a better experience. :lol:
     
  11. tuapekastar

    tuapekastar Established Member

    Mar 16, 2005
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    JohnK, guessing (hoping) your visit was prior to the redevelopment of QF/BA lounge - reopened Dec 2004 - (http://www.qantas.com.au/info/flying/qantasClub/QFBASingapore) which states it is now "3 times larger".

    Cheers
     
  12. infoworks

    infoworks Member

    Aug 11, 2002
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    Sydney
    I agree, use the points for tickets as posted already.
     
  13. JohnK

    JohnK Veteran Member

    Mar 22, 2005
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    From the pictures it looks a lot bigger and better then when I was there on 6/12/04.
     
  14. Guest

    Guest Guest

    QP Life for someone so young is a waste for many reasons.
    Buying anything for the purpose of it being a tax deduction has to be the biggest scam ever and f that is your intent you need to speak with your accountant for more creative ways to solve this issue.

    Keep your $4200 and use your points for your twice a year flying, book it in business class and you'll get Club access anyway.

    I can almost guarantee the qantas club will be very different in twenty years from now.
     
  15. jerrico

    jerrico Newbie

    Oct 14, 2005
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    0
    Brisbane
    In relation to the tax implications above:

    a. You would only be able to deduct a life membership over a period of 10 years (ie. $420 a year).

    b. I believe it would be unlikely the points will be treated as assessable income, unless you are carrying on a business as an individual and the points are received as part of an income earning activitity (eg you receive points in lieu of cash). Also, points earned in the course of performing employment activities are not generally regarded as assesable.
     
  16. Dave Noble

    Dave Noble Senior Member

    Oct 10, 2005
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    If you feel that Lifetime Qantas Club membership is something you would like to rely on but baulk at paying $4200 for it , I would say to go for it. The best way to use points is that which provides what you want

    Depending on how you use points, 825k could provide travel values greater than $4200 in theory; e.g. 370k will give a 1st return to London which could be viewed as a value of AUD10k however , if you would never pay that for the flight, then it doesn't really have that value

    If I had 825k points spare and I wanted lifetime club access , I would go for it rather than spend the money

    Dave
     
  17. NM

    NM
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    Aug 27, 2004
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    Perzactly!

    And if I had 825K points and wanted to travel to London in First Class, I would use the points rather than spend the money.

    And if I had 825K points and wanted to send 100 of my close relatives on a one-way trip from BNE to SYD, I would consider using the points rather than spend the money :lol:
     
  18. Kiwi Flyer

    Kiwi Flyer Senior Member

    Sep 24, 2004
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    thats no way to treat your relatives :lol:
     
  19. serfty

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    Nov 16, 2004
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    Just be aware that this would cost 800,000 points (700,000 with current BMSY1000 promotion) and $4375 in taxes, charges and levies. :shock:
     
  20. NM

    NM
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    Aug 27, 2004
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    So for that cost of points and cash, I could buy two lifetime Qantas Club memberships - Will they put the second one on hold until the first one expires :lol: .
     
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