We’ve all been there — a gift you didn’t like, a purchase that turned out to be a bad decision, or maybe you simply bought the wrong size. Navigating refund and exchange policies can feel awkward, especially when you’re not sure what your rights are. Here’s the rundown on what you can (and can’t) do under Australian law when you need to return or exchange an item.
Faulty Goods: The Clear-Cut Cases
The good news? If an item is faulty, doesn’t match its description, or just doesn’t work for the purpose it was bought for, you’re entitled to a remedy. Australian Consumer Law (ACL) provides strong protection for consumers, so if you get home to discover your product is broken, unsafe, or not what you were promised, you have the right to a refund, repair, or replacement. This is true even if the product was a gift.
Common examples of “major problems” that would trigger these rights include receiving the wrong item (like a red bike instead of a green one), a faulty electric blanket, or even something that simply doesn’t live up to expectations — like a raincoat that isn’t waterproof because the material is wrong. These situations are pretty clear cut, and businesses must honour your rights.
Change of Mind: The Grey Area
Now, this is where it gets trickier. If you bought something on a whim, or simply changed your mind, the ACL doesn’t offer the same protections. In fact, it’s entirely up to the business whether or not they accept returns for change of mind. There’s no legal obligation to take back products just because you don’t like them anymore, or if the size doesn’t quite fit.
Dr. Nicola Howell from Queensland University of Technology explains to ABC News that businesses aren’t required by law to offer return or exchange policies for change of mind situations. But, if they do, they must be consistent and stick to their own rules. That means if a store says it offers exchanges within 30 days, it has to honour that. If you’re unsure about a store’s return policy, it’s always a good idea to check before you make the purchase.
What About the Return Window?
One thing you’ll definitely encounter is the “return window.” Stores will often set a time limit — say, 14 or 30 days — within which you can return items, especially if they have a change of mind policy. But be careful: businesses aren’t allowed to set policies that override your rights under ACL. So, if you bought a faulty item but are past the store’s return window, your rights to a remedy still stand.
Like returns, exchanges usually come down to the store’s own policy. For example, if a shirt doesn’t fit, and you want to swap it for a different size, it’s generally considered a “change of mind” situation. If the store offers exchanges, they must follow their own stated policies, which typically include the timeframe for returns and what proof of purchase is required.
The Bottom Line
While businesses have the freedom to set their own policies on returns for non-faulty items, your rights under Australian Consumer Law are always protected when it comes to faulty goods. So, if your purchase doesn’t meet expectations or is faulty in any way, don’t be afraid to ask for what you’re owed, even if the store has a “no refunds” policy. And if you’re unsure about a store’s return or exchange policy, just ask. It’s your money, and you’re entitled to know your rights.








