A new law in the new state came into force over the weekend. Under the law, consumers can buy gift cards for at least three years.
Starting on Saturday (March 31), retailers will be forced to specify at least three years' validity on their gift cards, compared with 12 months before, according to Agence France Presse.
After purchasing gift cards, consumers are also prohibited from deducting any fees from the gift card when they inquire about the balance in the gift card.
Nearly 1/10 of new state consumers do not use all of their gift cards before they expire, according to the new state government. The government's three-year rule on gift cards means consumers can save up to A $60 million a year.
"the new law was introduced to convince consumers that when they buy gift cards for relatives and friends, they can pay for it," said Keane (Matt Kean), director of new state optimization management.
Supermarket giant Woolworths has removed all gift cards from stores across Australia since Saturday, which is expected to put pressure on other retailers to follow Woolworths's approach.
Consumer rights group Select (Choice) estimates that Australian consumers spend about $2.5 billion a year on gift cards, but people are believed to be losing about $200 million a year as a result of buying gift cards.
According to a 2014 Choice survey, 1/3 of respondents lost at least one gift card in the past three years.
The government's new rules do not include gift cards purchased by consumers before March 31 this year. The expiration date of these gift cards remains the same.