Your Right to a Refund in Australia Under the Australian Consumer Law
Last updated: June 2026
Consumer Guarantees Under the Australian Consumer Law
The Australian Consumer Law (ACL) gives automatic consumer guarantees on goods and services bought from businesses. These guarantees cannot be excluded, restricted, or modified by contract — they apply regardless of what any sign or terms and conditions say.
What Consumer Guarantees Apply to Goods
Every good sold to a consumer must be:
- Of acceptable quality — safe, durable, free from defects, and fit for all purposes goods of that type are commonly used for
- Fit for a disclosed purpose — if you told the seller what you needed it for
- Matching description, sample, or demonstration model
- With clear title — the seller must have the right to sell it
Major vs Minor Failures
A failure is major if a reasonable consumer would not have bought the goods knowing of the problem, or the goods are substantially unfit and cannot easily be fixed.
For a major failure, you choose:
- A full refund, or
- An identical replacement, or
- Compensation for the drop in value
For a minor failure, the supplier can choose to repair, replace, or refund. If they cannot fix it within a reasonable time, you can reject the goods.
What Retailers Cannot Tell You
"No refunds" or "No exchanges on sale items" signs are illegal under the ACL where consumer guarantees apply. Retailers cannot:
- Refuse a refund for a product that fails a consumer guarantee
- Tell you a credit note is all you can get for a major failure
- Tell you to contact the manufacturer (for a major failure, you go directly to the retailer)
Change of Mind
Consumer guarantees do not cover change of mind. You are only entitled to a remedy if the goods failed a guarantee.
Key Points
- Consumer guarantees are automatic and cannot be contracted out of
- Major failures: you choose refund, replacement, or compensation
- "No refunds" signs are illegal where consumer guarantees apply
- Change of mind is not a consumer guarantee
- Contact the ACCC or your state fair trading office for unresolved disputes