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  • 11 Consumers, Money, and Debts
  • Australian Consumer Law
  • What goods are covered by the ACL?
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Handbook

What goods are covered by the ACL?

There is a two-part test for working out which goods will be covered by the ACL and which goods are not.

The first is whether, or not, the item that has been purchased, hired, or leased cost more than $40,000.

From July 2021 this amount will increase to $100,000.

This said at time of writing, if the item costs more than $40,000 it will generally not be covered by the ACL.

However, there is an exception which forms the second part of the test and that is whether, or not, the item is intended for personal or household use.

This second part of the test can mean expensive items like cars, or boats, which cost more than $40,000 are subject to the ACL guarantees.

The ACL also has a definition of the term goods in the legislation itself.

This definition states goods can be:

  • Ships, aircraft and other vehicles; and
  • Animals, including fish; and
  • Minerals, trees and crops, whether on, under or attached to┬áland or not; and
  • Computer software; and
  • Second-hand goods; and
  • Any component part of, or accessory to, goods.

 

Finally, there are some exemptions where the goods in question cost less than $40,000, are for personal use and were bought from a business but are subject to an exemption.

These exemptions include electricity and gas which are regulated by separate legislation.

If you have spent more than $40,000 on an item and feel that one of the ACL guarantees has been breached it is wise to get legal advice on your options rather than simply applying this test yourself.

It may be that you have a claim which can be brought under contract law, even if the ACL does not apply to your purchase.

Page last updated 11/12/2020

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