Consumer Rights & Refunds (Australian Consumer Law)
When something you bought in Australia breaks, doesn't match the ad, or a service is done poorly — the Australian Consumer Law (ACL) guarantees rights that apply automatically to everyone. They are the same whether you are a permanent resident or on a working holiday, student or temporary visa, and they don't disappear just because a store puts up a 'No refunds' sign.
This page is general information, not legal advice. It summarises the key points of the Australian Consumer Law (ACL) from a newcomer's perspective. Because every dispute is different, please check the latest details with the ACCC (accc.gov.au) and the Fair Trading agency in your state before acting on your rights. Phone numbers, amounts and time limits can change.
1. What are the ACL 'consumer guarantees'? — Rights that come automatically
When you buy goods or services in Australia for personal or household use, legally set 'consumer guarantees' apply automatically, even if you don't buy a separate warranty. A seller cannot remove these rights with statements like "sale items cannot be refunded."
Guarantees that apply to products
- Acceptable quality — must be safe, durable, free from defects, and good in appearance and finish.
- Fit for purpose — if you tell staff a specific use and they say "yes, it works for that," it must do so.
- Matches description — must be the same as the advertising, label or spoken description.
- Matches sample/demo — must be the same quality and function as the sample you were shown.
- Repairs & spare parts — manufacturers must provide repairs and parts for a reasonable period.
Guarantees that apply to services
- Due care and skill — the work must be of a competent trader's standard.
- Fit for purpose — must achieve the result you stated in advance.
- Reasonable time — if no deadline was set, it must be finished within a reasonable time.
These guarantees apply to purchases made on or after 1 January 2011. However, some cases differ in scope — one-off sales between private individuals, traditional auctions, financial products such as insurance, and purchases for resale or manufacturing (see accc.gov.au for detailed exceptions).
2. A 'No refunds' sign is unlawful
⚠ A store's 'No refunds' sign breaks the law
A seller cannot remove the ACL consumer guarantees by putting up a 'No refunds' sign or saying refunds aren't available. The ACCC states that it is "against the law" for a business to mislead consumers about their rights in this way.
- Phrases like "All sales final / No returns / Sale items cannot be refunded" are the same — if a product has a guarantee failure (such as a defect), your rights remain even on sale items.
- A store's own 'refund policy' is something it offers in addition to your ACL rights; it cannot drop below the minimum rights the ACL guarantees.
- However, a refund simply because you changed your mind or don't like the size or colour is not required by the ACL (see point 5 below).
Even if a salesperson gives you wrong information, remember that the standard for your rights is the law (the ACL), not store policy.
3. Major failure vs minor failure — who chooses the remedy
When a guarantee is breached, the remedy available (repair, replacement or refund) depends on whether the problem is a 'major failure' or a 'minor failure' — and who gets to choose also changes.
Major failure — the consumer chooses
It is a 'major failure' if any of the following apply.
- the product is unsafe
- it is significantly different from the description or sample
- it has one serious problem, or several small ones, that you would not have bought it if you had known
- it cannot be used for its normal purpose and cannot easily be fixed within a reasonable time
In this case the consumer can choose a refund or a replacement of the same type. A refund must be the full amount paid, and the seller cannot deduct an amount for the time you used it.
Minor failure — the seller offers a free repair first
A problem that does not meet the major-failure test (one that can easily be fixed) is a 'minor failure'.
- The seller must provide a free repair, and the seller may choose between repair, replacement or refund (for a minor failure there is no obligation to replace or refund, though they may do so if they wish).
- However, if they cannot repair it within a reasonable time, the consumer can have it repaired elsewhere and claim the cost, or ask for a refund or replacement.
Services work the same way — minor problems must be fixed for free, and for a major problem the consumer can cancel the contract and get a refund, or keep the contract but pay a lower amount that reflects the problem.
4. How to ask for a refund or exchange (4 steps)
- Check whether it's a guarantee failure — work out whether a 'consumer guarantee' has been breached, such as a defect, a mismatch with the description, or it not working. A simple change of mind does not count.
- Gather evidence — collect your proof of purchase (receipt, bank statement, order-confirmation email) and photos or videos showing the problem.
- Ask the seller (the retailer) directly — for a guarantee failure you ask the store you bought from, not the manufacturer. For a major failure ask for the refund or replacement you want; for a minor failure ask for a repair. Where possible, ask politely but clearly in a way that leaves a record, such as email.
- If you're refused, report it — if the store refuses a legitimate right, report it to your state's Fair Trading or the ACCC (see point 6).
5. Receipts, return postage, and 'change of mind'
What if you lost the receipt?
The product does not need to be in its original packaging, but the seller can ask for 'proof of purchase' such as a receipt. If you don't have a receipt, you can use a bank or card statement, an order-confirmation email, an invoice number and so on — so keep your transaction records.
Who pays for return postage?
For products that can be posted or easily carried, the consumer covers the return cost. But for products that are large, heavy or hard to remove (a big TV, a bed, an installed appliance, etc.), the seller must collect them. If the fault is confirmed, the seller must reimburse any reasonable return cost the consumer has already paid.
What about a change of mind?
A refund or exchange because you changed your mind, the size or colour doesn't fit, or you found it cheaper elsewhere — with no fault — is not required by the ACL. In that case it is entirely up to the store's own refund policy, so check the refund terms before you buy.
6. If the store refuses — report to the ACCC or your state's Fair Trading
If a store refuses a repair, replacement or refund despite a legitimate right, you can ask a consumer protection agency for help. In Australia consumer disputes are mainly handled by the Fair Trading agency in each state or territory, while the ACCC deals with unlawful conduct at the national level.
Where and how to report
- Your state's Fair Trading first — individual refund disputes are usually fastest with your state agency. For example: NSW Fair Trading 13 32 20, Consumer Affairs Victoria 1300 55 81 81, and the Office of Fair Trading in QLD. WA, SA, TAS, ACT and NT are handled by each state's consumer protection agency.
- Report to the ACCC — anyone can report an ACL breach to the ACCC. ACCC Infocentre 1300 302 502 (phone hours Mon–Fri 11am–3pm AEST/AEDT, closed on public holidays).
- Small-claims tribunal — if no agreement is reached, you can pursue the matter in your state's small civil and consumer tribunal (for example NCAT in NSW, VCAT in VIC).
Free interpreting if English is difficult — when you contact a government agency, you can connect a free interpreter through TIS National 131 450 and get help in your own language. When you call, say 'I need an interpreter' and name your language (Korean, Chinese, Japanese, Vietnamese, etc.).
8. Official sources (government agencies)
- ACCC — Consumer rights & guarantees(opens in a new window)
Official guidance on ACL consumer guarantees and refund rights (in English).
- ACCC Infocentre (1300 302 502)(opens in a new window)
Report or ask about ACL breaches. Phone 1300 302 502 (Mon–Fri 11am–3pm AEST/AEDT).
- NSW Fair Trading (13 32 20)(opens in a new window)
Handles consumer disputes for NSW residents. Phone 13 32 20.