Returns and refunds on goods

Introduction

If there is a problem with goods you have bought, depending on the problem, you can get a replacement, refund, repair, or other type of remedy. 

This guide provides information on:

  • what happens when an item is faulty
  • how the problem can be fixed
  • when you can get a refund
  • what happens if you bought the item on sale, second-hand or online.

When an item is faulty

When you buy goods they must be of acceptable quality under Australian Consumer Law.

Find out more about consumer guarantees under Australian law.

When you can return a faulty item

An item is faulty if one or more of the following applies:

  • it doesn’t do what it’s normally supposed to do - eg: your toaster doesn’t toast bread
  • it has a defect - eg: the knob fell off your toaster
  • it is unacceptable in appearance or finish - eg: your toaster is scratched
  • it is unsafe - eg: sparks fly out of your toaster
  • it isn’t durable - eg: your toaster broke down three months after you bought it.

You can return a faulty item even if you have done one or more of the following:

  • worn or used it
  • removed the tags or labels
  • removed it from the original packaging.

When you can't return a faulty item

You can’t return a faulty item if you have done one or more of the following:

  • bought the item even after the store told you about the hidden defects
  • examined the item before buying and didn’t find defects you should have noticed
  • used the item in an abnormal way
  • used the item for a very long time.

Fixing the problem

If you have bought an item that is faulty you may be entitled to one of the following: 

  • a refund
  • a repair
  • a replacement.

Whether you get a refund, repair or replacement depends on whether the problem is major or minor.

Major

Major problems are those that can’t be fixed, would take too long, or are too difficult to fix.

If you have bought an item that has a major problem you can choose to:

  • return the item - you can choose a replacement or refund
  • or keep the item and get compensation for the drop in value.

Minor

Minor problems are those that can be fixed within a reasonable time.

You must give the store the chance to fix a problem. They can choose whether to refund, repair or replace your item.  

If the store chooses to repair the item, it is their responsibility to return it to and deal with the manufacturer.

If the store takes too long or refuses to fix the problem, you can return the item and ask for a refund or replacement.

You can contact NT Consumer Affairs and other agencies for help with your dispute.


Returning goods and getting a refund

A store doesn’t have to let you return an item if you have changed your mind. 

However, some stores have their own policy to offer a refund, exchange or credit note. 

This is the same for items bought online.

Proof of purchase

If you are returning an item you will need to prove the item was purchased from that business.

If you don’t have the receipt, you can show any of the following:

  • a credit card statement
  • a lay-by agreement
  • a confirmation or receipt number from the phone or online purchase.

Find out more about proof of transaction.

When you can return goods for a refund

You can return goods for a refund if any of the following apply:

  • it doesn’t match the sample or demonstration model - eg: you buy a couch based on the fabric sample, but when it arrived it was a different colour
  • it doesn’t match the description -  eg: you buy a leather wallet, but when you get it home you find out it is vinyl
  • it doesn’t do what the salesperson told you it would - eg: you buy a watch which the salesperson said you could use when diving but it filled up with water the first time you used it
  • it doesn’t do what you want after you told the salesperson what you want it for and you relied on their advice - eg: you told a car dealer you wanted to tow your boat, but when the owner’s manual states your car can’t safely tow any boat.

If you received the item as a gift

If you received the item as a gift you have the same refund right but must have proof of purchase.


Items bought on sale, second-hand or online

Read below to find out about your refund and return rights for items bought on sale, second-hand or online.

On sale

You have the same refund rights on faulty sale items as you do on full-priced items. 

It is illegal for a shop to display a ‘no refunds on sale items’ sign.

You can’t claim a refund for faults the store told you about or those you might have noticed before you bought the item. For example, if there was a tag attached saying ‘reduced - faulty stitching'.

Sale items include any of the following:

  • discounted items
  • items in a samples or seconds rack
  • items bought from a factory outlet.

Second-hand

If bought from a store, you have the same refund rights on second-hand purchases as you do for new items, but you must take into account the item’s age, price and condition at the time of sale.

If you bought a second-hand item privately, for example, at a garage sale or through a classified ad, the seller doesn’t have to refund, replace or repair the item.

Online

If you buy an item online from an Australian business you have the same rights as when buying it from a shop.

Read more about online shopping and mail order.

For more advice contact NT Consumer Affairs.