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26 Dec 2025 13:51
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  •   Home > News > International

    When can you get a refund or exchange under Australian law?

    It can feel awkward asking for a refund or to exchange an item if you’re not sure what you’re entitled to. We’ve broken it down.


    Have you received some unwanted gifts this holiday season? 

    Perhaps you’ve bought a few things for yourself that you now regret.

    It can feel a little awkward asking for a refund or to exchange an item, especially if you’re not sure what you’re entitled to.

    It's one of those errands you may want to avoid altogether but to make it less painful, we’ve broken down what you’re entitled to. 

    Firstly, is the product faulty? 

    Your rights really boil down to the reason for the return, according to the Australian Competition and Consumer Commission (ACCC).

    "If a product is faulty, doesn’t match the description, or is not fit for purpose, consumers will have rights to a remedy under the Australian Consumer Law (ACL)," the ACCC says.  

    Also known as consumer guarantees, these rights still apply if an item was given as a gift and a "remedy" can include a refund, repair or replacement.

    But it depends on whether the problem is considered "major" or "minor"

    According to the ACCC ordering a red bicycle and receiving a green one, an electric blanket with faulty wiring or a raincoat not being waterproof because it’s made from the wrong material are all examples of major problems. 

    If something does not meet a consumer guarantee and you would like it refunded, repaired or replaced, "a business can ask consumers to provide a receipt or another form of proof of purchase," the ACCC says.

    "Other acceptable forms of proof of purchase may include a credit or debit card statement, lay-by agreement, a receipt or reference number given over the phone or internet, as well as warranty cards or serial numbers." 

    Can I get a refund for change of mind?  

    This is where things become more nuanced. 

    The ACCC says consumers don't have the same rights if "they no longer like or want a product".

    Wanting to return something because it's the wrong size, you found it cheaper elsewhere or you did not like the item would typically all fall under a "change of mind".

    Nicola Howell, a senior lecturer at Queensland University of Technology's law school, says our consumer law does not address "change of mind" returns.

    Dr Howell says it comes down to the policy the store offers. There's no obligation to have a change of mind policy, but retailers do need to be consistent if they offer one, she says.

    If you're shopping for something that may need to be returned, she recommends checking the store's specific policy.

    The store determines whether it allows "change of mind" refunds or exchanges, the return window, and the kind of proof of purchase it requires, Dr Howell says.

    What is a return window? 

    When it comes to change of mind returns, most store policies outline the length of time a customer has to refund or exchange an item.

    Consumer Action Law Centre CEO Stephanie Tonkin says the ACL doesn't force businesses to offer change of mind refunds, but they are legally obligated to follow their own policy.

    "If they do set a return period — 14 days, 30 days, whatever — they must honour it."

    Consumer Affairs Victoria says the policy should be clearly displayed at point of sale or included on the business' website.

    What about exchanges? 

    Once again, exchanges typically fall under the individual store's policy. 

    Ms Tonkin says wanting to swap the size of an item, such as a pair of shoes or a shirt that does not fit are "generally a change of mind, not a fault".

    If the store has a change of mind policy, such as exchanges within 14 days, "they must stick to it".

    'The store's policy never overrides the law' 

    It's important to remember that return windows or exchange policies can't be used to "shut down your rights" when it comes to faulty products, Ms Tonkin says.

    "If something is broken, unsafe, or not what you were promised, your ACL rights apply regardless of any "no refunds" or expired return window.."

    The ACCC says while businesses can put conditions on returns under their policies, they cannot put those same conditions on returns where products do not meet the consumer guarantees.

    If you have an issue with a store, you can contact your local state or territory fair trading or consumer affairs agency for assistance, the ACCC says.


    ABC




    © 2025 ABC Australian Broadcasting Corporation. All rights reserved

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