The shop assistant shakes their head. “Sorry, no refunds on sale items.” You stare at the faulty phone charger in your hand, confused and frustrated. Sound familiar? Thousands of Australians face refund refusals every week—often based on store policies that directly contradict the law.
The truth is simpler than retailers want you to believe. Your refund rights under Australian Consumer Law don’t depend on store signs, sales labels, or whether you kept the box. They’re automatic protections that kick in the moment a product or service fails to meet basic guarantees. This guide walks you through exactly when you’re entitled to a refund, how to request one step by step, what evidence you need, and where to escalate if a business refuses.
Whether you’re dealing with a faulty appliance, a dodgy service, or a digital purchase that doesn’t work, you’ll learn how to push back confidently with the law on your side.
Refund Rights Under Australian Consumer Law Explained
The Australian Consumer Law (ACL) creates automatic consumer guarantees that every business must honour. These guarantees apply to goods, services, and digital products sold in Australia—regardless of what store policies claim.
When a product or service fails to meet these guarantees, you’re entitled to a remedy. That remedy might be a refund, repair, or replacement, depending on whether the failure is major or minor. Importantly, these rights exist whether or not the business offers a warranty, and they can’t be excluded by terms and conditions or “no refund” signs.
The ACCC’s position is crystal clear: signs stating “no refunds,” “all sales final,” or “store credit only” are misleading because they falsely suggest consumers have no rights. Businesses displaying these signs breach the ACL and face potential penalties.
Your rights depend on the type of failure. A major failure with goods means the product is significantly different from the description, unfit for its normal purpose and can’t easily be fixed, unsafe, or of unacceptable quality that you wouldn’t have bought it if you’d known. For services, a major failure means the service wasn’t performed with acceptable care and skill, or it didn’t achieve the result you asked for.
For major failures, you can choose between a refund and a replacement. The business doesn’t get to choose—you do. For minor failures, the business can elect to repair the product within a reasonable time, but if they can’t fix it or the repair takes too long, it escalates to a major failure and you get your choice of remedy.
| Situation | Your Right | Who Chooses |
|---|---|---|
| Major failure with goods | Refund or replacement | You choose |
| Minor failure with goods | Repair (or refund/replacement if repair fails) | Business initially chooses; you choose if repair fails |
| Major failure with services | Refund or re-performance | You choose |
| Minor failure with services | Rectification at no cost | Business must fix |
When You Are Entitled to a Refund
Understanding the difference between major and minor failures determines whether you can insist on a refund or must accept a repair. The ACL sets clear tests for each category.
1. Major failures with goods include:
- The product is unsafe—it poses a risk to health or property
- The product is significantly different from the sample, description, or what you asked for
- The product doesn’t do what you asked for and can’t easily be fixed
- The product has multiple minor problems that together make it unacceptable
- The product would never have been purchased if you’d known about the problem
2. Minor failures are defects or problems that don’t meet the major failure test. They’re faults that can reasonably be fixed—a scratched screen protector, a loose button, or a small functional issue that doesn’t affect the product’s core purpose.
Example: In 2023, a Victorian consumer bought a $1,800 refrigerator that failed to maintain consistent temperature after eight months. The compressor was faulty and would require multiple repair attempts. VCAT (Victorian Civil and Administrative Tribunal) ruled this was a major failure because refrigerators should reasonably last many years at that price point, and temperature control is their fundamental purpose. The consumer received a full refund.
3. Services and major failures: For services, a major failure occurs when the service wasn’t performed with due care and skill, didn’t achieve the specified result, or would never have been purchased if you’d known about the problem. For example, a builder who installs a bathroom that leaks within weeks has delivered a service with a major failure—you’re entitled to a refund of the full cost minus any reasonable value you received.
4. Time matters but isn’t fixed: The ACL doesn’t set specific timeframes like “14 days” or “30 days.” Instead, you must claim your refund within a reasonable time after discovering the problem. What’s reasonable depends on the product’s nature—you should report a faulty phone immediately, but a premature washing machine failure after 18 months is still within a reasonable time if the machine should last longer.
Key indicators of major failure:
- Safety risk to you or your property
- It can’t be used for its normal purpose
- Multiple faults or recurring problems
- Significant difference from what was promised
- Wouldn’t have bought it if you’d known about the problem
How to Request a Refund Step by Step
Requesting a refund under the ACL follows a clear escalation path. Start with the seller and work your way up if they refuse to comply.
Step 1: Gather proof of purchase: Collect your receipt, bank statement, order confirmation, or any other proof you bought the product. If you’ve lost the receipt, ask the retailer to search their system by card transaction, email address, or loyalty card number. Under the ACL, you have rights even without a receipt—but proof of purchase makes the process smoother.
Step 2: Identify the failure as major or minor: Determine whether the problem meets the major failure test. Is it unsafe? Significantly different? Can’t be fixed easily? If yes, you can insist on a refund. If it’s a minor failure, the business can offer a repair first.
Step 3: Contact the seller first: Approach the business where you made the purchase. Explain the problem clearly, state which ACL guarantee has been breached, and specify that you’re seeking a refund for a major failure. Stay calm and factual. If you’re in-store, ask to speak with a manager if front-line staff claim “it’s policy” to refuse refunds.
Step 4: Put it in writing: If verbal requests fail, send a formal complaint via email or letter. Include:
- Your contact details
- Purchase date and proof of purchase
- Clear description of the fault or problem
- Explanation of why it’s a major failure under the ACL
- Statement that you’re entitled to a refund under Section 259 of the ACL
- Reasonable deadline for response (typically 7–14 days)
Keep a copy of everything you send and receive.
Step 5: Escalate to ACCC or state fair trading: If the business still refuses, complain with:
- ACCC (accc.gov.au/contact-us) for general consumer issues and potential enforcement action
- Your state or territory fair trading agency for mediation and local dispute resolution:
- NSW: Fair Trading NSW
- VIC: Consumer Affairs Victoria
- QLD: Office of Fair Trading Queensland
- WA: Consumer Protection WA
- SA: Consumer and Business Services SA
- TAS: Consumer, Building and Occupational Services
- ACT: Access Canberra
- NT: Consumer Affairs NT
These agencies can contact the business, explain their obligations, and facilitate resolution.
Step 6: Consider tribunal or small claims court: For unresolved disputes, your state’s consumer tribunal offers a quick, low-cost hearing:
- NSW: NSW Civil and Administrative Tribunal (NCAT)
- VIC: Victorian Civil and Administrative Tribunal (VCAT)
- QLD: Queensland Civil and Administrative Tribunal (QCAT)
- WA: State Administrative Tribunal (SAT)
- SA: South Australian Civil and Administrative Tribunal (SACAT)
- TAS: Tasmanian Civil and Administrative Tribunal (TasCAT)
- ACT: ACT Civil and Administrative Tribunal (ACAT)
- NT: Northern Territory Civil and Administrative Tribunal (NTCAT)
Most tribunals don’t require lawyers for consumer matters under $10,000–$25,000 (varies by state).
Refund request checklist:
- Proof of purchase gathered
- Fault identified as a major or minor failure
- Initial contact made with the seller
- Written complaint sent if verbal request is refused
- A complaint was lodged with Fair Trading if the business won’t comply
- Tribunal application prepared if necessary
What Evidence You Need to Support Your Refund Claim
Strong evidence transforms your refund request from a he-said-she-said dispute into a documented claim the business—or tribunal—must take seriously.
Essential evidence includes:
- Proof of purchase: Receipt, bank or credit card statement, email confirmation, tax invoice, or order number. If you don’t have any of these, ask the retailer to search their records. Even a witness who was with you when you purchased can serve as evidence.
- Documentation of the fault: Take clear photos or videos showing the defect, damage, or malfunction. For appliances or electronics, capture error messages, sparking, leaking, or broken components. For clothing or shoes, photograph tears, colour run, or poor stitching.
- Expert reports: For complex products like cars, appliances, or electronics, an independent expert’s report strengthens your case. A mechanic can confirm a vehicle defect existed at purchase; an electrician can certify an appliance is unsafe.
- Written correspondence: Keep every email, letter, chat transcript, or message you exchange with the business. These documents prove you attempted resolution and document what the business said or promised.
- Witness statements: If someone saw the product fail, heard misleading claims from sales staff, or witnessed the service being performed poorly, their written statement adds credibility.
- Timeline of events: A simple chronological list helps tribunals understand what happened and when. Note the purchase date, when the fault appeared, when you first contacted the business, and each subsequent interaction.
Example: The ACCC’s consumer advice explicitly states that while receipts are the best proof of purchase, consumers aren’t left without rights if they lose them. Bank statements, card transaction records, and even sworn statements can establish you bought the product.
Why written evidence matters: Fair trading agencies and tribunals rely on documentary evidence. Verbal claims become difficult to verify, but photos, receipts, and expert reports speak for themselves. If your case reaches tribunal, judges make decisions based on what’s documented—not what you remember someone saying.
Evidence checklist for refund claims:
- Receipt or alternative proof of purchase
- Photos/videos of the fault or damage
- Expert report (if applicable for complex products)
- All correspondence with the business (emails, letters)
- Witness statements (if relevant)
- Timeline documenting key dates and events
How Refunds Work for Online and Digital Purchases
Many Australians mistakenly believe online purchases or digital products have different rules. They don’t. The ACL applies equally whether you buy in-store, online, or digitally.
1. Online shopping and physical goods: Products ordered online must meet the same consumer guarantees as in-store purchases. If a product arrives faulty, damaged in transit, or significantly different from the description, you’re entitled to a refund, repair, or replacement. The seller must arrange and pay for return postage if the product is faulty—you shouldn’t be out of pocket.
2. Digital products and services: The ACL covers apps, software, ebooks, music downloads, streaming subscriptions, online gaming, and cloud storage. These products must be fit for purpose, match their description, and work as advertised. If a paid app crashes constantly, doesn’t deliver promised features, or becomes unusable after an update, you’re entitled to a refund.
Example: In 2023, the ACCC investigated Apple after consumers complained about difficulties obtaining refunds for faulty apps and in-app purchases. Apple eventually clarified its refund process and acknowledged that Australian consumers have rights under the ACL regardless of Apple’s own policies. The case reinforced that digital product sellers can’t hide behind “no refunds on digital goods” policies.
| Purchase Type | ACL Coverage | Common Issues |
|---|---|---|
| Physical goods online | Full ACL guarantees apply | Faulty on arrival, not as described |
| Digital apps/software | Full ACL guarantees apply | Doesn’t work, missing features |
| Streaming subscriptions | Full ACL guarantees apply | Service unavailable, poor quality |
| In-app purchases | Full ACL guarantees apply | Items not delivered, don’t work |
3. Return shipping for faulty goods: If you bought online and the product is faulty, the business must cover return postage. You shouldn’t pay to send back a product that breached consumer guarantees. Request a prepaid shipping label or reimbursement for postage costs.
4. Change of mind online: Some online retailers offer voluntary change-of-mind returns as a customer service policy. This is separate from your ACL rights. If a product simply isn’t what you expected but isn’t faulty, the retailer doesn’t have to provide a refund unless they advertised a returns policy.
Common Excuses Retailers Give (And Your Legal Response)
Retailers often rely on standard excuses to avoid honouring refunds. Here’s how to respond when you hear these common pushbacks.
“No refunds on sale items.” Your response: “The ACL doesn’t distinguish between sale items and regular stock. Consumer guarantees apply to all products regardless of price or discount.”
Sale items must meet the same acceptable quality standards as full-price goods. A discounted product can’t be faulty just because it was on sale. The only exception is if the business specifically pointed out a defect and reduced the price accordingly—even then, the product must still be safe and fit for purpose.
“It’s out of warranty.” Your response: “Warranties are extras. My ACL consumer guarantees apply for the reasonable life of the product, which is longer than the manufacturer’s warranty for a product at this price.”
Warranties and consumer guarantees are separate. Warranties might expire after 12 months, but a $2,000 washing machine should reasonably last much longer. The ACL guarantees continue for as long as a reasonable consumer would expect based on the product’s price, quality, and nature.
“That’s the manufacturer’s responsibility, not ours.” Your response: “Under the ACL, I can choose to pursue the retailer, manufacturer, or importer. I’m choosing to deal with you as the seller.”
Retailers try to redirect consumers to manufacturers to avoid responsibility. The ACL gives you the choice of who to pursue. While manufacturers do have obligations, you don’t have to accept the retailer’s attempt to wash their hands of the problem.
“You should have bought the extended warranty.” Your response: “Extended warranties don’t create rights—they’re optional extras. My ACL guarantees apply automatically.”
Extended warranties are paid extras that might offer conveniences but don’t replace or enhance your statutory rights. Businesses that suggest you have no rights without an extended warranty are misleading you.
“We don’t give refunds without a receipt.” Your response: “I have proof of purchase through my bank statement/order confirmation/loyalty card records. The ACL doesn’t require a receipt—it requires proof of purchase.”
Receipts are the easiest proof, but they’re not the only acceptable evidence. Transaction records, witnesses, or even the retailer’s own sales records can establish you made the purchase.
Example: In 2024, the ACCC fined a national furniture retailer $2.1 million for displaying “no refunds on clearance stock” signs in stores. The court ruled these signs misled consumers about their ACL rights. The retailer was ordered to remove all such signage and train staff on consumer guarantees.
| Retailer Excuse | Legal Reality | Your Response |
|---|---|---|
| “No refunds on sale items.” | ACL applies to all purchases | “Sale items have the same guarantees.” |
| “Warranty expired.” | Guarantees the last reasonable product life | “ACL guarantees exceed warranty periods.” |
| “Contact the manufacturer.” | You choose who to pursue | “I’m exercising my right to deal with you.” |
| “No receipt, no refund” | Multiple forms of proof accepted | “I have proof of purchase via bank statement.” |
Services and Refunds Under ACL
Products get most of the attention, but the ACL’s service guarantees are equally powerful—and equally enforceable through refunds.
Services covered include trade work (plumbing, electrical, building), professional services (legal advice, accounting), personal services (hairdressing, beauty treatments), repairs and maintenance, and travel bookings. Every service must be performed with due care and skill, fit for the purpose you specified, and completed within a reasonable time.
1. When you’re entitled to a service refund:
If the service has a major failure—it wasn’t performed competently, didn’t achieve the result you asked for, or caused additional damage—you can claim a refund. The refund amount is typically the full service cost minus any reasonable value you received.
Example: You hire a builder to renovate your bathroom for $12,000. The tiling is uneven, the shower leaks, and the plumbing doesn’t meet building codes. You hire a second builder who charges $5,000 to fix the defects. The first builder delivered a service with a major failure. You’re entitled to a refund of the full $12,000 (minus any value from work that was done correctly) plus the $5,000 remediation cost.
2. Travel and accommodation: The ACL covers travel bookings, accommodation, tours, and transport services. If a travel agent books you on the wrong flight, a hotel is significantly different from photos, or a tour operator fails to deliver promised inclusions, you’re entitled to a refund.
During COVID-19, the ACCC took multiple enforcement actions against travel companies that misled consumers about refund rights for cancelled bookings. Airlines, travel agents, and event organisers that claimed “credit only” or “no refunds” breached the ACL when services couldn’t be provided as agreed.
3. Tradies and substandard work: If you hire a tradie who damages your property, uses incorrect materials, or fails to complete work to an acceptable standard, they must fix the problems at their own cost. If they refuse or can’t fix it, you’re entitled to hire someone else and claim the remediation cost as a refund.
4. Services refund calculation: Service refunds can be complex. Tribunals typically award:
- Full refund if the service provided no value
- Partial refund (full cost minus reasonable value received) if some work was acceptable
- Remediation costs if you hired someone else to fix the problems
- Consequential damages (e.g., alternative accommodation if a builder rendered your home uninhabitable)
Who to Contact If a Refund Is Refused
When businesses refuse legitimate refund requests, Australian consumers have multiple escalation options. Start locally and work your way up to enforcement agencies and tribunals.
Step 1: ACCC (Australian Competition and Consumer Commission) Website: accc.gov.au/contact-us The ACCC doesn’t resolve individual disputes but collects complaints to identify systemic issues. If many consumers report the same business, the ACCC may investigate and take enforcement action. Lodge your complaint through the online form—it takes 10–15 minutes and creates a permanent record.
Step 2: State and territory fair trading agencies These agencies mediate disputes, contact businesses on your behalf, and explain ACL obligations.
- NSW Fair Trading: fairtrading.nsw.gov.au | 13 32 20
- Consumer Affairs Victoria: consumer.vic.gov.au | 1300 558 181
- Office of Fair Trading Queensland: qld.gov.au/law/fair-trading | 13 74 68
- Consumer Protection WA: commerce.wa.gov.au/consumer-protection | 1300 304 054
- Consumer and Business Services SA: cbs.sa.gov.au | 131 882
- Consumer, Building and Occupational Services TAS: cbos.tas.gov.au | 1300 654 499
- Access Canberra: accesscanberra.act.gov.au | 13 22 81
- Consumer Affairs NT: consumeraffairs.nt.gov.au | 1800 019 319
Step 3: Industry ombudsmen (for specific sectors): Some industries have dedicated ombudsmen who investigate complaints and make binding decisions:
- Telecommunications Industry Ombudsman (TIO): tio.com.au | 1800 062 058
- Australian Financial Complaints Authority (AFCA): afca.org.au | 1800 931 678 (banking, insurance, financial services)
- Energy and Water Ombudsman: varies by state
Step 4: Consumer tribunal: If mediation fails, your state tribunal offers a formal hearing process. Most tribunals charge minimal fees ($50–$100) and don’t require lawyers for consumer matters:
- NSW: NCAT (ncat.nsw.gov.au) | 1300 006 228
- VIC: VCAT (vcat.vic.gov.au) | 1300 018 228
- QLD: QCAT (qcat.qld.gov.au) | 1300 753 228
- WA: SAT (sat.justice.wa.gov.au) | (08) 9219 3111
- SA: SACAT (sacat.sa.gov.au) | 1800 723 767
- TAS: TasCAT (tascat.tas.gov.au) | 1300 792 528
- ACT: ACAT (acat.act.gov.au) | (02) 6207 1740
- NT: NTCAT (ntcat.nt.gov.au) | (08) 8999 1129
Tribunal decisions are legally binding. If you win, the business must comply or face enforcement action.
Escalation timeline:
- Days 1–14: Attempt resolution directly with the business
- Days 15–28: Escalate to state fair trading for mediation
- Days 29–45: Lodge tribunal application if mediation fails
- Days 46–90: Attend tribunal hearing and receive decision
ACCC Enforcement Cases on Refunds
The ACCC doesn’t just provide guidance—it takes legal action against businesses that systematically deny refunds. These enforcement cases set precedents and demonstrate the serious consequences of breaching refund obligations.
ACCC v Apple (2023): Apple paid $9 million in penalties after the Federal Court found it made false representations about ACL refund rights. Apple told customers their iPhones and iPads weren’t covered by consumer guarantees if third parties had repaired them. The court ruled this was misleading—ACL guarantees apply regardless of third-party repairs. Apple was ordered to contact 5,000 affected customers and provide refunds where entitled.
ACCC v Jetstar (2022): Jetstar paid penalties and agreed to remediate customers after misleading them about refund rights during COVID-19. The airline told customers they could only receive travel credits for cancelled flights when many were entitled to refunds under ACL consumer guarantees. Jetstar implemented new staff training and refund processes.
ACCC v Kogan (2021): Online retailer Kogan paid $350,000 in penalties for making false or misleading representations about consumer guarantee rights. Kogan’s website falsely stated that consumers only had 30 days to make claims and that claims were subject to manufacturer assessment. The court confirmed ACL guarantees last the reasonable life of products and consumers can choose to deal with retailers, not just manufacturers.
ACCC v Coles and Woolworths (2024): Australia’s major supermarkets faced investigation after displaying misleading “no refunds” signs on reduced-to-clear stock. Both chains quickly removed the signage and retrained staff after ACCC intervention, avoiding formal court proceedings by demonstrating rapid compliance.
What these cases teach consumers:
- Major corporations aren’t exempt from ACL obligations
- Penalties reach millions of dollars for systemic breaches
- Courts consistently side with consumers when businesses misrepresent rights
- The ACCC prioritises cases affecting large numbers of consumers
Recent penalty amounts:
- Major retailer misleading refund signs: $2.1 million
- Tech company false representations: $9 million
- Airline misleading refund policies: $120 million (Qantas, multiple breaches)
- Online retailer false guarantee claims: $350,000
These cases reinforce that your refund rights under Australian Consumer Law are serious legal protections backed by significant enforcement powers.
FAQs
Can I get a refund without a receipt?
Yes, but you need alternative proof of purchase. Bank statements, credit card records, order confirmations, or loyalty card transaction histories all serve as proof. The ACL requires proof you made the purchase—not necessarily a paper receipt. If you have no documentation, ask the retailer to search their system by your card details or email address.
What if I bought something on sale—do I still get refund rights?
Absolutely. Sale items must meet the same consumer guarantees as full-price goods. The only exception is if the business specifically pointed out a defect before sale and reduced the price accordingly. Even then, the product must be safe and fit for its purpose.
How long do I have to claim a refund?
The ACL doesn’t set a fixed deadline. You must claim within a reasonable time after discovering the fault. For obvious faults (product doesn’t work out of the box), claim immediately. For faults that develop later (premature failure), claim as soon as you discover the problem. What’s reasonable depends on the product’s nature and price—a $3,000 washing machine should last much longer than a $50 kettle.
Do gift cards have refund rights?
Gift cards aren’t “goods” under the ACL, so standard consumer guarantees don’t apply. However, Australian Consumer Law does regulate gift card expiry dates—they must be valid for at least three years from purchase. State laws may provide additional protections. If you used a gift card to buy goods or services, those purchases have full ACL protection.
Can a business force me to accept store credit instead of a refund?
No. For a major failure, you choose the remedy—refund or replacement. The business can’t force you to accept store credit. For minor failures, the business can attempt a repair, but if that fails or takes too long, you gain the right to choose a refund.
What if the business has closed down or gone into liquidation?
Your ACL rights technically remain, but enforcement becomes difficult. Contact the manufacturer directly—they still have obligations under consumer guarantees. If the business is in liquidation, you may need to lodge as an unsecured creditor, though recovery is often minimal in these cases.
Do I need a lawyer to claim a refund?
Not usually. Most refund disputes resolve through direct negotiation, fair trading mediation, or tribunal hearings that don’t require legal representation. Consider legal advice only for high-value disputes (over $25,000) or complex cases involving significant consequential damages.
Can I claim a refund for change of mind?
Not under the ACL. Consumer guarantees don’t cover change of mind, wrong size, better price elsewhere, or simply not liking the product. However, many retailers offer voluntary change-of-mind returns as customer service. Check the retailer’s return policy—this is separate from your ACL rights.
Conclusion
Understanding your refund rights under Australian Consumer Law transforms you from a frustrated customer into an informed consumer who can confidently challenge unfair refusals. Remember the fundamentals: consumer guarantees are automatic, they apply to goods and services equally, and no store policy can override them.
Start every refund request by approaching the seller directly with clear evidence and a factual explanation of the major failure. Put your request in writing if verbal approaches fail. Escalate to state fair trading agencies when businesses stonewall, and don’t hesitate to use consumer tribunals for unresolved disputes—they’re designed for everyday Australians without legal expertise.
Bookmark this guide alongside the [What is the Australian Consumer Law explained simply] pillar article for comprehensive coverage of your consumer rights. Keep evidence organised, act within reasonable timeframes, and remember that the law backs you up when products or services fail to meet basic guarantees.
Have you successfully claimed a refund using ACL rights? Share your experience in the comments to help other Australian shoppers navigate their consumer protections.
