Shoppers in NSW will have at least three years to use gift cards under new laws that come into effect this weekend.
From Saturday, retailers will be forced to put a minimum three-year expiry date on cards sold in the state - triple the usual 12-month limit.
Businesses will also be banned from applying fees after the cards have been bought, which reduces the remaining balance.
The NSW government believes nearly one in 10 gift card recipients in the state don't use the full balance in time, meaning the changes could see up to $60 million a year back in the hands of shoppers.
"This is all about giving consumers confidence that when they buy gift cards for friends or relatives, they're getting value for money," Minister for Innovation and Better Regulation Matt Kean said.
The new laws prompted Woolworths to scrap expiry dates on its gift cards entirely, starting Saturday across Australia, putting pressure on other retailers to follow suit.
Consumer advocacy group Choice estimates Australians spend about $2.5 billion a year on gift cards but about $200 million is believed lost every year.
A 2014 Choice survey found one third of respondents had lost the full value of at least one gift card in the previous three years.
Cards bought in NSW before March 31 will have the same expiry date and terms and conditions that applied at the time of purchase.
