Refund refused? Take the seller to NCAT under Australian Consumer Law
"No refunds" signs do not override the law. Every product and service sold in Australia comes with consumer guarantees under the Australian Consumer Law ("ACL") — Schedule 2 to the Competition and Consumer Act 2010 (Cth). When a seller refuses to honour them, NCAT can order a refund, replacement, repair or compensation.
This page covers how a consumer claim works in NCAT's Consumer and Commercial Division: which guarantees apply, the major-failure test that decides who chooses the remedy, the evidence the Tribunal expects, and the orders you can ask for.
Information, not legal advice. Figures current as at 1 July 2025.
What this dispute is
A consumer refund case at NCAT is a claim that the seller (or sometimes the manufacturer) has failed to meet one or more of the consumer guarantees in the ACL and that you are entitled to a remedy. The guarantees apply to most goods and services bought for personal, domestic or household use, and to most goods under $100,000 regardless of use. They cannot be excluded by contract — "no refunds" terms are unenforceable to the extent they conflict.
For goods, the guarantees in ss51-59 ACL include: acceptable quality (s54), fitness for any disclosed purpose (s55), matching description (s56), matching sample (s57), repairs and spare parts available for a reasonable time (s58), and express warranties honoured (s59). For services, ss60-62 require services to be rendered with due care and skill (s60), fit for any specified purpose (s61), and supplied within a reasonable time (s62).
The pivotal concept is the major failure test in s260 (goods) and s268 (services). If the failure is major, the consumer chooses: refund, replacement, or keep the goods and claim compensation for the drop in value. If the failure is minor (or major and the supplier offers a free repair within a reasonable time), the supplier can choose to repair. Working out which side of the line you're on is the case.
Time limits that bite
These deadlines are strict. The Tribunal can extend in some cases, but extensions are not automatic — they're weighed on length, reason, prospects and prejudice.
- Reasonable timeNotify the seller of the failure once it becomes apparentACL Pt 5-4 framework
- 3 yearsGeneral limitation for ACL claims at NCAT — from when the failure became apparentACL s273 / NCAT Act
- Reasonable lifeAcceptable-quality claims can succeed years after purchase if the goods failed earlier than a reasonable consumer would expectACL s54
- Mandatory recall windowRecalls and safety notices can extend remedies beyond the standard periodACL Pt 3-3
- 28 daysInternal appeal window for general application mattersNCAT Guideline 1
The process, step by step
- 1
Demand the remedy from the seller in writing
Start with a written demand to the seller. Email is best. Identify the product or service, the date of purchase, the price, the failure, and the remedy you want. Reference the ACL guarantee you're relying on — "the goods are not of acceptable quality under s54 of the Australian Consumer Law". Give a deadline (14 days is reasonable for most matters).
Don't accept the first "no". Many call-centre staff have discretion they don't volunteer. Escalate to the store manager, then head office. Keep every email — they form Annexure A of your NCAT application.
- 2
NSW Fair Trading complaint (optional but useful)
You can lodge a free complaint with NSW Fair Trading. They conciliate — there's no order-making power, but many traders settle at this stage because Fair Trading writes to them. Fair Trading isn't a precondition for NCAT in consumer cases (unlike home building), but a Fair Trading file shows you tried to resolve.
If Fair Trading can't resolve it, they close the file. Take the close-out letter (and the file reference) to NCAT — it strengthens your "I tried" narrative.
- 3
Lodging the NCAT application
Use the General Application form via NCAT Online (ncat.nsw.gov.au/apply), at any registry, or by post. The fee is $127 standard, $32 concession on the 1 July 2025 schedule. The claim is in NCAT's Consumer Claims jurisdiction, cap up to $40,000.
Name the respondent carefully. For goods, the supplier (retailer) is liable for the consumer guarantees — not the manufacturer in the first instance (though the manufacturer has separate liability under ss271-272 for some guarantees). Get the supplier's full legal entity name from the receipt or the ASIC register.
Be specific in "orders sought": "Order that the respondent refund the purchase price of $1,899 to the applicant within 14 days, on return of the goods" — not "we want our money back". Itemise any consequential losses (delivery, lost wages, hire of replacement) separately.
- 4
Conciliation and hearing
NCAT typically lists a combined conciliation/hearing. At conciliation, the respondent may offer something less than full refund — repair plus a partial credit, store credit instead of cash. Don't accept worse than your entitlement without thinking — a major failure entitles you to choose between refund and replacement, not whatever the seller prefers.
At hearing, you're the applicant. Lead with the receipt and the timeline of the failure. Bring the item if practical (or clear photos/video). The Tribunal works through: was the guarantee triggered (e.g. acceptable quality)? Is the failure major or minor? Was the remedy demanded? Did the supplier refuse?
- 5
Orders and enforcement
Orders are usually for a refund (sometimes against return of the goods), replacement, repair, or compensation for the drop in value. NCAT can also order compensation for any reasonably foreseeable loss caused by the failure (s259(4) for goods, s267(4) for services) — delivery fees, hire costs, lost wages where the failure caused them.
Money orders are enforced by registering at the Local Court and using a writ for levy of property or a garnishee. Appeals to the NCAT Appeal Panel are within 28 days for Consumer and Commercial general orders.
Evidence that actually works
Cases are lost on missing documents more than on weak arguments. Get these in order before you file.
Receipt or tax invoice
Establishes the seller, date, price and item. If you've lost it, a credit card statement plus the seller's record (request in writing) usually suffices.
The faulty item (or detailed photos and video)
Bring the item to the hearing if practical. If it's been sent back, dated photos and video of the failure are critical.
Written demand and seller's response
The email chain where you asked for a remedy and the seller refused or offered something less. This is the core narrative.
Independent inspection or assessment (where useful)
For higher-value items, an independent technician's report on the fault and likely cause significantly strengthens the case.
Manufacturer specifications or advertising claims
If the goods were marketed for a particular use ('waterproof', 'all-terrain', 'commercial-grade') and don't perform, that's a s55 fitness-for-purpose case.
Comparable products and their normal lifespan
For acceptable-quality claims, a printout showing similar products typically last X years bolsters the 'durable for a reasonable time' element of s54.
Records of consequential losses
Receipts for replacement hire, lost wages records, repair quotes for damage caused by the failure.
Common reasons people lose
Naming the wrong respondent
Sue the supplier you bought from, not 'the brand'. Use the legal entity name on the receipt or ASIC register. 'Bob's Pty Ltd t/a Bob's Appliances' is the correct format.
Treating it as a 'change of mind' case
ACL guarantees don't cover buyer's remorse. The goods must actually fail a guarantee — not just be 'not what I wanted'.
No written demand before NCAT
If you haven't given the seller a chance to respond in writing, the Tribunal may pause for that step. Always have an email refusal in hand.
Confusing manufacturer warranty with ACL rights
Manufacturer warranties are extra protection on top of ACL guarantees. A 12-month warranty doesn't mean you have no rights after 12 months.
Discarding or repairing the item before the hearing
If you've thrown the item out or had it repaired elsewhere, the seller can dispute the failure ever existed. Keep the item; photograph it; only have it repaired with the seller's agreement (or after the hearing).
Accepting a store credit when you wanted cash
For a major failure, you can choose refund or replacement — not whatever the seller offers. A store credit is a settlement, not a remedy you have to accept.
Orders NCAT can make
This is the kind of order you can ask for — not a guarantee you'll get it. Frame your application around the order you actually want.
Refund of the purchase price
An order that the seller refund the price paid, usually against return of the goods. Available for major failures where the consumer chooses refund.
Replacement of the goods
An order that the seller supply replacement goods of the same kind and value. Consumer's choice for major failures.
Order for the seller to repair within a reasonable time
For minor failures, the seller may choose to repair free of charge within a reasonable time.
Compensation for drop in value
Where the consumer keeps the goods, an order for compensation reflecting the difference between the value as supplied and the value if the guarantee had been met.
Compensation for consequential loss
Reasonably foreseeable losses caused by the failure — replacement hire, lost wages, repair to other property damaged by the failure (s259(4) / s267(4)).
Order against a service supplier
Re-supply of the service, refund of the fee, or compensation where a service was not rendered with due care and skill (s60).
Free help
- NSW Fair Trading — consumer complaints
Free conciliation. Often resolves before NCAT is needed.
- ACCC — consumer rights
Plain-English guides to the consumer guarantees.
- LawAccess NSW — 1300 888 529
Free legal info line, Mon-Fri 9am-5pm.
- CHOICE — consumer guides
Templates for complaint letters and product testing data.
- Australian Consumer Law (Schedule 2)
The legislation — consumer guarantees in ss51-62.
- NCAT Consumer Claims
Forms, fees and procedure for the Consumer & Commercial Division.
Questions self-reps ask
What's the difference between a major and a minor failure?
A major failure (s260) is one where a reasonable consumer wouldn't have bought the goods if they had known about it; or where the goods are significantly different from the description, sample or demonstration model; or are substantially unfit for their normal purpose; or are unsafe.
For a major failure the consumer chooses the remedy — refund or replacement. For a minor failure, the seller can offer a free repair within a reasonable time. The line matters because it controls who picks the remedy.
Can the seller make me accept a store credit?
No. For a major failure, you can choose between a refund and a replacement — the seller cannot force store credit on you. For a minor failure, the seller can choose to repair, but they cannot force you to take store credit as a substitute for the legal remedy.
"No refunds, store credit only" signs are unenforceable for ACL claims. They may apply to change-of-mind returns where no guarantee has been breached.
Does the manufacturer's warranty period matter?
It's separate from your ACL rights, not a cap on them. ACL guarantees apply for a reasonable time given the price, the nature of the goods, and what a reasonable consumer would expect.
A $3,000 fridge failing at 18 months is unlikely to be "of acceptable quality" even if the manufacturer's warranty was 12 months. The manufacturer's warranty is extra; the ACL is the floor.
What if I bought online from interstate?
The ACL applies federally, so an interstate online seller is still bound. NCAT can hear the matter if the seller carries on business in NSW, supplied goods to a NSW consumer, or the contract was made in NSW.
For purely interstate sellers without NSW presence, you may need to use the equivalent tribunal in their state (VCAT, QCAT, etc.) or a Federal Court small claim. Call LawAccess NSW for the jurisdiction question before lodging.
What about second-hand goods?
Consumer guarantees apply to second-hand goods, but the standard of "acceptable quality" takes into account that the goods are used and the price paid.
A $200 second-hand laptop is not held to the same durability standard as a $2,000 new one. The guarantees still apply — they're just calibrated to what a reasonable consumer would expect at that price and condition.
Do the guarantees cover services like a tradie's work?
Yes. Sections 60-62 require services to be rendered with due care and skill, fit for any specified purpose, and supplied within a reasonable time.
A dodgy paint job, a plumber who creates a leak, a website developer who delivers something unusable — all are within ACL service guarantees. For licensed building work over $5,000 you may also have rights under the Home Building Act 1989, which is a separate NCAT pathway.
How much is the filing fee and is there a concession?
General consumer matters are $127 standard or $32 concession on the 1 July 2025 schedule. Concessions cover pensioners, Legal Aid grantees, CLC clients, full-time students, and inmates.
Hardship waivers are available. Fees are CPI-indexed each year — verify on ncat.nsw.gov.au before lodging.
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NCAT Tracker is not a law firm. This page is information, not legal advice. Figures, fees and statutory periods cited here are current as at 1 July 2025 and are CPI-indexed or amended from time to time — verify on ncat.nsw.gov.au and legislation.nsw.gov.au before you lodge.