Status: checked against official sources; automated independent review
FREQUENT FLYER GLOSSARY
What is a billing cycle?
A billing cycle — also called a statement period — is the repeating window in which a card issuer totals a cardholder's purchases, applies its fee and rewards rules, and sets the statement date and the date payment is due. [3] For Commonwealth Bank of Australia's cashback offers, spending is assessed using the original transaction date, so a transaction may appear on a later statement and still count toward an earlier statement period. [3]
Facts checked: 18 October 2026
Key takeaways
- A billing cycle is the repeating period an issuer uses to total spending and measure monthly rules; Commonwealth Bank of Australia calls the same unit a statement period. [3]
- On Commonwealth Bank's Low Fee, Smart and Ultimate cards, the monthly fee is assessed per statement period; the monthly travel and dining credits, which exist only on the Smart and Ultimate cards, are issued per statement period, and cashback offers on the new Low Rate and Low Fee cards use the same statement-period measure. [3]
- The cycle is not the cardmember year: 12-month bonus conditions run from the anniversary of card activation, a separate clock from the statement period. [3]
How does a billing cycle work?
At Commonwealth Bank of Australia, the statement period is the unit its offer terms use to test monthly spending and monthly fees. [3] The bank's cashback terms describe the period as a month (statement period) and award cashback for each eligible statement period in which the spend threshold is met. [3] Repayment sits on a separate part of the account terms: RBC Royal Bank says that if the full balance is not paid each month, interest is charged on the outstanding balance. [2]
When does a purchase land in a billing cycle?
In its cashback offers, Commonwealth Bank of Australia allocates card spending by transaction date rather than by the day a charge happens to appear on the statement. Total spend per statement period is based on the date the purchase is made, and the transaction must be fully processed and posted to the account within 14 days of that date to be eligible. [3] The offer terms spell out the consequence plainly: a transaction may appear on a later statement and still be counted toward the minimum spend requirement for an earlier statement period. [3]
Cash advances and refunds are excluded from eligible spend in those offers. [3] The bank also notes that it may process transactions later than the day the cardholder made them; for the monthly fee waivers, spend counts transactions fully processed in the statement period, not pending ones. [3]
Which fees and rewards depend on the statement period?
On three Commonwealth Bank of Australia cards, the monthly fee is waived for a statement period in which spending reaches a threshold. [3]
| Card | Spend needed in the statement period | Monthly fee if the threshold is not met |
|---|---|---|
| Low Fee credit card | $300 | $3 |
| Smart credit card | $2,000 | $19 |
| Ultimate credit card | $4,000 | $35 |
The spend counted is all purchases and cash advances minus refunds, for transactions fully processed in that statement period and not pending ones. [3] That waiver has an end date: from the first statement issued on or after 1 January 2027, the spend-based monthly fee waiver is removed for the Smart and Ultimate cards and the $19 and $35 monthly fees apply. [3]
The length of the interest-free window also differs by card. Commonwealth Bank lists an interest-free period on purchases of up to 55 days for its Low Rate and Low Fee cards and up to 44 days for its Smart and Ultimate cards. [3] On the Smart and Ultimate cards, monthly travel credits and dining credits are issued only for a statement period in which the applicable card fee has been charged, except where the fee was waived by meeting the minimum spend requirement — $4,000 per statement period for Ultimate and $2,000 for Smart. [3] Cashback on those new-card offers is credited within 90 days of the end of each eligible statement period and shows on the statement as "CASHBACK". [3]
How is the billing cycle different from the cardmember year?
Statement periods repeat month after month; Commonwealth Bank's acquisition offers also use a 12-month test tied to card activation. To earn the additional CommBank Yello points on its Smart and Ultimate cards, the cardholder must keep the account open for more than 12 months from the date the card is activated and be eligible for CommBank Yello both at the 12-month anniversary of activation and when the points are paid. [3] That test is separate from the statement-period spend tests above.
RBC Royal Bank notes that some of its cards carry an annual fee while others have no annual fee at all. [2] For the anniversary-based concepts, see cardmember year and annual credit.
Exceptions and limits
- No interest-free period on some cards. Commonwealth Bank lists the interest-free period on purchases as not applicable on its Interest-free Low Fee credit card and on its CommBank Neo card; both show a 0% p.a. purchase interest rate and a monthly fee. [3]
- Quiet cycles on CommBank Neo. If there are no processed transactions in a given statement period and the previous statement closing balance is paid in full by the due date, no monthly fee is charged for that statement period. [3]
- The first cycle can be longer. In the cashback offers, the first eligible spend period runs from the day the account is opened to the end of the second statement period after opening, so it may be longer than one statement period; later periods align to each statement period that follows. [3]
- Refunds move spending backwards. A refund processed in a statement period reduces eligible spend for that period, regardless of when the original transaction took place, so the cardholder has to spend an additional amount equal to the refund to hit the target. [3]
Frequently asked questions
How long is a billing cycle?
Commonwealth Bank of Australia measures spending and fees per statement period, and its cashback terms describe the period as a month (statement period). [3]
Does a purchase count when it is made or when it posts?
For Commonwealth Bank's cashback offers, the transaction date governs, provided the transaction is fully processed and posted within 14 days of that date. [3] A purchase can therefore appear on a later statement and still count toward an earlier statement period. [3]
Do monthly fees and rewards reset every cycle?
On Commonwealth Bank's Low Fee, Smart and Ultimate cards, the monthly fee is assessed per statement period. The monthly travel and dining credits exist only on the Smart and Ultimate cards and are issued per statement period. Twelve-month bonus conditions run from the anniversary of card activation. [3]
Can a refund change which cycle spending falls in?
Yes. A refund processed in a statement period reduces eligible spend for that period even if the original purchase was made in an earlier one. [3]
Sources
Sources accessed on 18 October 2026. It covers statement-period rules published by Commonwealth Bank of Australia and card-level terms from RBC Royal Bank; airline and hotel loyalty programme rules, and the terms of other card issuers, are not covered here.
- RBC Royal Bank credit cards overview, checked 18 October 2026
- Commonwealth Bank of Australia credit cards and offer terms, checked 18 October 2026