Consumer Guarantees in Australia: What the ACL Promises You

Consumer guarantees are automatic statutory rights under sections 51 to 62 of the Australian Consumer Law, attached to nearly every purchase of goods or services from a business, covering quality, fitness for purpose, and matching description, regardless of any store warranty policy.

This article explains the consumer guarantees under Division 1 of Part 3-2 of the Australian Consumer Law (Cth). It does not cover the remedy process in detail (see faulty goods and your right to a refund) or the difference between these guarantees and a voluntary manufacturer warranty (see warranties against defects vs statutory guarantees).

What a consumer guarantee actually is

A consumer guarantee is a promise imposed by statute, not by the seller. It attaches automatically the moment a business supplies goods or services to a consumer in trade or commerce, and it sits independently of, and in addition to, whatever the receipt, packaging or sales assistant said. A business cannot remove these guarantees by displaying a "no refunds" sign, telling a customer the manufacturer is solely responsible, or writing an exclusion into its terms and conditions. The guarantees do not apply to a supply by way of auction for most of the goods guarantees, and they do not apply at all if the purchase does not meet the "consumer" threshold described below.

The nine goods guarantees

Sections 51 to 59 of the ACL set out nine separate guarantees that apply when a business supplies goods to a consumer other than by auction. Section 51 guarantees the supplier has the right to dispose of the goods, so a buyer receives good title. Section 52 guarantees undisturbed possession, free from a third party's lawful claim. Section 53 guarantees the goods are free of any undisclosed security or charge, such as an unpaid finance lien, unless it was disclosed in writing before the purchase. Section 54 guarantees acceptable quality; section 55 guarantees fitness for any purpose the consumer discloses to the supplier; section 56 guarantees correspondence with a description; section 57 guarantees correspondence with a sample or demonstration model shown before purchase. Section 58 guarantees that the manufacturer will make repair facilities and spare parts reasonably available for a reasonable period after supply, unless the consumer was told in writing before purchase that they would not be. Section 59 guarantees that both the manufacturer and the supplier will honour any express warranty they have given.

Acceptable quality: the guarantee that does the most work

Section 54 is the guarantee most disputes turn on. Under section 54(2), goods are of acceptable quality if they are as fit for their common purposes, as acceptable in appearance and finish, as free from defects, as safe, and as durable as a reasonable consumer, fully acquainted with the goods' condition (including any hidden defects), would regard as acceptable. Section 54(3) requires that assessment to take into account the nature and price of the goods, any statements on packaging or labelling, any representation made by the supplier or manufacturer, and any other relevant circumstances. A $30,000 car and a $30 kettle are held to different standards of durability and finish because of this price-and-nature test; the guarantee does not promise perfection, it promises what a reasonable, fully informed buyer would accept. Section 54(4) and (5) also mean goods are not treated as failing this guarantee where a defect was specifically and transparently disclosed to the consumer before they agreed to buy.

Fitness for a disclosed purpose and correspondence with description or sample

Section 55 guarantees goods are reasonably fit for any purpose the consumer makes known, expressly or by implication, to the supplier, or to anyone involved in earlier negotiations, before buying, unless it would have been unreasonable for the consumer to rely on the supplier's skill or judgment for that purpose. Section 56 guarantees goods correspond with any description given, whether on packaging, in an online listing or in conversation. Section 57 does the same for a sample or demonstration model, and additionally guarantees the consumer had a reasonable opportunity to compare the goods against the sample, and that the goods are free of any defect that would not have been apparent from a reasonable inspection of the sample.

The services guarantees are sections 60 to 62, not 60 to 63

Subdivision B of Division 1 of Part 3-2 covers services, and it is often mis-cited as running from section 60 to section 63. It does not. Section 60 guarantees services will be rendered with due care and skill. Section 61 guarantees services, and any product resulting from them, will be reasonably fit for a particular purpose the consumer discloses, or will achieve a result the consumer makes known they want, unless the consumer did not reasonably rely on the supplier's skill or judgment for that purpose, or the supplier is a qualified architect or engineer providing a professional service under section 61(4). Section 62 guarantees services will be supplied within a reasonable time where no time was fixed by the contract. Section 63 is a scope-exclusion clause, not a guarantee: it removes from Subdivision B any contract for transporting or storing goods for a business's trade or profession, and any contract of insurance, subject to a carve-out in section 63(2) for a consignee who is not themselves acting in the course of a business. Citing "the services guarantees in sections 60 to 63" as if all four sections impose obligations is a common and avoidable error. See consumer rights for services for how these guarantees apply in practice.

Who counts as a "consumer" for these guarantees to apply

Section 3 defines when goods or services are acquired "as a consumer," and the guarantees only attach to a consumer acquisition. The price test in section 3(1)(a) is the one most often gotten wrong: the Act's own printed text at subparagraph (i) still says $40,000, but subparagraph (ii) allows a greater amount to be prescribed for that paragraph, and a greater amount currently is prescribed. The ACCC's own consumer guidance states the operative business-use threshold as $100,000 including GST. Separately, and regardless of price, section 3(1)(b) covers goods of a kind ordinarily bought for personal, domestic or household use, and section 3(1)(c) separately covers a vehicle or trailer acquired mainly to transport goods on public roads. Section 3(2) then carves back out anyone who bought the goods for resupply, or to use up or transform them in a manufacturing or repair process; those buyers are not consumers under the ACL even if the price is under the threshold.

These guarantees cannot be signed away

Section 64 makes any contract term void to the extent it purports to exclude, restrict or modify a consumer guarantee, the right to enforce one, or a supplier's liability for breaching one. This applies whether the term is spelled out in a contract or merely incorporated by reference. The only exception, in section 64A, applies to goods or services not ordinarily bought for personal or household use: such a contract can validly limit liability to the cost of repair, replacement, resupply, or the cash equivalent, but never for the title, possession or undisclosed-security guarantees in sections 51 to 53, and only where a court finds it fair and reasonable for the supplier to rely on the limitation, weighing the matters in section 64A(4) such as the parties' relative bargaining power.

What the Consumer Guarantees Do Not Cover

The guarantees are broad, but they are not unlimited, and knowing the limits matters as much as knowing the rights.

They do not cover damage a consumer caused themselves. If a product was misused, used contrary to clear instructions, modified, or damaged by accident after purchase, the failure is not a breach of a guarantee. Ordinary wear and tear is treated the same way, because acceptable quality is assessed against what a reasonable consumer would expect given the price, the nature of the goods and how long they have been used. A three year old appliance is not expected to perform like a new one.

They also do not cover a change of mind. A business may choose to accept a return because a customer decided they no longer wanted an item, or found it cheaper elsewhere, or bought the wrong size, but nothing in the Australian Consumer Law requires it to.

Proof of purchase is not limited to a paper receipt. This is where readers most often assume they have lost a right they still have. A business is entitled to ask for proof that the purchase was made from it, but that proof can take other forms, including a bank or credit card statement, a lay by agreement, a confirmation or tax invoice sent by email, or a warranty card showing the supplier and date. Losing the till receipt does not by itself end a claim.

This page provides general legal information about consumer guarantees under the Australian Consumer Law, verified 21 July 2026. It is not legal advice about your own purchase or dispute. For advice on your situation, consult a legal practitioner admitted in the relevant Australian state or territory.

For what happens when a guarantee is breached, see faulty goods and your right to a refund. For services specifically, see consumer rights for services. For how a voluntary manufacturer warranty differs from these statutory guarantees, see warranties against defects vs statutory guarantees. Return to the Australian Consumer Law hub for the full picture.

Frequently Asked Questions

Do I need to buy an extended warranty to get consumer guarantee rights?

No. Consumer guarantees under sections 51 to 62 of the ACL apply automatically to a qualifying purchase, at no extra cost, regardless of whether you also buy a separate extended or manufacturer warranty.

Are the services guarantees sections 60 to 63?

No. The services guarantees are sections 60, 61 and 62. Section 63 is a scope-exclusion provision that removes certain freight, storage and insurance-related contracts from the services guarantees; it is not itself a guarantee.

What does "acceptable quality" mean under the ACL?

Under section 54, goods are of acceptable quality if they are as fit for purpose, as free from defects, as safe and as durable as a reasonable consumer, fully aware of the goods' condition including hidden defects, would regard as acceptable, taking into account the price and nature of the goods.

Can a business exclude consumer guarantees with a store policy?

No. Section 64 makes a term that tries to exclude, restrict or modify a consumer guarantee void for an ordinary consumer purchase. A narrow business-to-business exception in section 64A applies only in limited circumstances and never to the title or possession guarantees.

Is a $150,000 business purchase covered by consumer guarantees?

It depends. If the goods are not of a kind ordinarily bought for personal or household use, and the price exceeds the prescribed threshold of $100,000 (including GST), the purchase generally will not meet the "consumer" definition in section 3, so the guarantees will not apply on the price limb, though other limbs of section 3 may still apply.

Do consumer guarantees apply to second-hand goods?

Generally yes, where a business sells the goods to a consumer in trade or commerce. The acceptable quality standard under section 54 is assessed against what a reasonable consumer would expect of goods of that age, condition and price, which is a lower bar than for new goods but not zero.