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Refund Policy

A Refund Policy is a document that enables your business to inform customers of your refund and returns process.

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4.8 (94 reviews)

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Last updated December 18, 2024

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Under 10 minutes

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Suitable for Australia

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Written by

Edwin Montoya Zorrilla

Reviewed by

Damin Murdock

Document Overview

A Refund Policy is a document that enables your business to inform customers of your refund and returns process. Under Australian Consumer Law, customers have the right to choose either a refund or exchange if a product or service has a major problem. This is deemed to be products or services that are unsafe, significantly differ from their description, or have an issue that would have stopped the customer from purchasing had they known beforehand. Even if the problem does not classify as major, the customer is still entitled to have the issue repaired in a reasonable amount of  time. 

This document incorporates the refund and return provisions of the Australian Consumer Law to ensure your business adheres to the rights of customers. It also outlines the instances in which you won’t have to provide a refund for your products or services. This includes when customers simply change their mind or are responsible for creating the fault. In addition, the document allows you to detail your returns process and who will be liable for shipping costs. 

The Legal Risk Score of a Refund Policy Template

Our legal team have marked this document as low risk considering:

  • There is a risk that the user may bear the costs of inspection, postage, shipping, transportation, or collection of a returned product if it is not eligible for a repair, replacement, or refund, which could lead to unexpected expenses.
  • The document allows for refusal of a repair, replacement, or refund if the product was misused or if the consumer was previously aware of the problem, potentially leaving the user without recourse in certain scenarios.
  • The policy does not specify the exact number of days within which the consumer must report damage during delivery or the timeframe for processing requests for repairs, replacements, or refunds, creating uncertainty about the timelines and efficiency of service.
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Refund Policy Checklist

Complete your free Refund Policy with our checklist

Verify Contact Information

Ensure that the contact details for returning products or discussing refunds, repairs, or replacements are correctly listed and easily accessible.

Clarify Timelines

Establish and communicate clear timelines for reporting damaged products and processing repairs, replacements, or refunds to avoid ambiguity and ensure timely resolution.

Review Exclusions

Carefully review the conditions under which refunds, repairs, and replacements may be refused, such as misuse or prior awareness of product issues, to ensure understanding and compliance.

Document Proof of Purchase

Maintain and organize proof of purchase documents as they are essential for processing any claims related to refunds, repairs, or replacements.

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Use this Refund Policy If:

  • You want to inform your customers of your refund and returns process when they’re not satisfied with a product or service.
  • You want to ensure your business complies with Australian Consumer Law and the rights of customers.

What does this Refund Policy Cover?

  • Australian Consumer Law;
  • Change of mind;
  • Products damaged during delivery;
  • Returns process;
  • Shipping costs for returns;
  • Response time; and
  • Exceptions.

Further Information

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