Right to Refund, Repair, or Replacement in New South Wales
Reviewed by the Commoner Law Editorial Team. Sourced from Commonwealth Acts of Parliament, federal regulations, and official government guidance. State-level information reflects each state's own Acts and court decisions. Written in plain language for general understanding — this is educational content, not legal advice. Our editorial standards
What is this right?
When a product fails to meet a consumer guarantee, you have the right to a remedy. The remedy you can demand depends on whether the failure is major or minor:
- Major failure: A reasonable consumer would not have bought the product if they knew about the problem. The product is significantly different from its description, substantially unfit for purpose, unsafe, or cannot be easily fixed. For a major failure, you choose whether to get a refund, replacement, or compensation.
- Minor failure: The problem can be fixed within a reasonable time. The seller can choose to repair the product. If they fail to repair it in a reasonable time, you can get a refund or replacement.
- No time limit on guarantees: Consumer guarantees are not limited to a set number of days. They last for as long as is reasonable given the product’s price, quality, and type. A $2,000 fridge, for example, should last significantly longer than a $20 toaster.
Sellers cannot charge you for shipping costs when returning a faulty product. For large items, the seller must arrange and pay for collection.
When does it apply?
- A product you bought as a consumer fails to meet one or more consumer guarantees (quality, fitness for purpose, matching description, etc.).
- The failure was not caused by misuse, accident, or normal wear and tear on your part.
- Applies even if the manufacturer’s warranty has expired — consumer guarantees can outlast warranties.
What to Do If an Australian Business Refuses Your Refund, Repair, or Replacement
- Determine whether the failure is major or minor — this decides who chooses the remedy.
- For a major failure, tell the seller you want a refund or replacement — the choice is yours, not theirs.
- Put your request in writing and keep copies of receipts, photos, and correspondence.
- If the seller refuses, contact your state or territory fair trading office or lodge a complaint with the ACCC.
What should you NOT do?
- Don’t accept a store credit if you want a refund for a major failure — you are entitled to your money back.
- Don’t pay for return shipping on faulty goods — the seller covers that cost.
- Don’t assume the warranty period is all you get — consumer guarantees can extend well beyond the stated warranty.
How New South Wales differs from federal law
The right to refund, repair, or replacement under the ACL is enforced in NSW by NSW Fair Trading. The remedy depends on whether the failure is major or minor.
- For a major failure (the consumer would not have bought the product if they had known about the problem), the consumer can choose a refund, replacement, or compensation for the drop in value. The consumer makes the choice, not the retailer.
- For a minor failure that can be fixed, the retailer can choose to repair, replace, or refund. They must do so within a reasonable time.
- NSW Fair Trading takes enforcement action against retailers that mislead consumers about their rights — including retailers who display "no refund" signs (which are illegal if they imply consumers have no rights under the ACL).
- Motor vehicles are a common source of refund disputes in NSW. NSW Fair Trading operates a specific motor vehicle complaint handling process and can issue rectification orders.
- NCAT can hear consumer claims up to $40,000 (or $100,000 for home building disputes). The process is designed to be accessible without a lawyer.
Additional Steps in New South Wales
Write to the retailer requesting a remedy. Keep receipts and evidence of the fault. If the retailer refuses, contact NSW Fair Trading (13 32 20). Lodge an application with NCAT if mediation fails. Filing fees at NCAT are modest (under $100 for most consumer claims).
Relevant Law: Australian Consumer Law (Schedule 2 of the Competition and Consumer Act 2010 (Cth)), ss 259-266; Fair Trading Act 1987 (NSW); Civil and Administrative Tribunal Act 2013 (NSW)
Common Questions
When does right to refund, repair, or replacement apply?
A product you bought as a consumer fails to meet one or more consumer guarantees (quality, fitness for purpose, matching description, etc.).The failure was not caused by misuse, accident, or normal wear and tear on your part.Applies even if the manufacturer’s warranty has expired — consumer guarantees can outlast warranties.
What should I do if a store in Australia is refusing to give me a refund for a faulty product?
Determine whether the failure is major or minor — this decides who chooses the remedy.For a major failure, tell the seller you want a refund or replacement — the choice is yours, not theirs.Put your request in writing and keep copies of receipts, photos, and correspondence.If the seller refuses, contact your state or territory fair trading office or lodge a complaint with the ACCC.
What mistakes should I avoid with right to refund, repair, or replacement?
Don’t accept a store credit if you want a refund for a major failure — you are entitled to your money back.Don’t pay for return shipping on faulty goods — the seller covers that cost.Don’t assume the warranty period is all you get — consumer guarantees can extend well beyond the stated warranty.
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