Free refund policy template (Australia)

Designing an adequate refund policy template is a critical part of your business strategy.

We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!

Overly relaxed return policies may cost you money and hurt your business' reputation. For this reason, you need a reliable, easy to use, and comprehensive refund policy, which will guide your customers and your staff through the process of seeking a refund.

What is a refund policy?

A refund or returns policy is a legal document which sets out how a business deals with customers' request for refunds. This document provides detailed guidelines to explain under which circumstances purchasers are entitled to a refund or replacement, and what they need to do to request one.

Clear and reliable refund policies encourage existing and potential customers to commit to your business, and allow them to shop without dread of the consequences.

Refund policy template

Download this template at Lawpath

When should I use a refund policy?

The cost of returns and refunds is a significant impact on businesses' profits. On the other hand, the threat of lost sales and undermined customers' relationships can be overwhelming.

Your business can use a refund policy to manage any refund request from your customers. This will demonstrate that your company stands by its product and its clients as well, and prides itself on an excellent customer service experience.

Refund policy vs no refund policy

Some businesses advertise that they have a "no refunds policy". However, it is against the law to refuse to provide refunds or returns under many circumstances.

On the other hand, businesses can still protect themselves against customers who ask for a refund without being entitled to one. When writing your refund policy, you must always specify the conditions to ask for a refund or replacement. For example, you can state that your customers are not entitled to a refund if they change their mind after the purchase, or if they find the same item or service elsewhere at a cheaper price.

If you are in doubt about your rights to refuse to provide refunds, you should speak to a lawyer or visit the Australian Competition & Consumer Commission (ACCC) website.

What does a refund policy template include and not include?

Developing a good refund policy will effectively reduce the financial and human resources you spend on returns and refunds, and will help you gain your customers' loyalty. Your policy must always provide a complete overview of your business' guidelines, and reassure your clients about your code of conduct.

What is included in a refund policy template?

A good refund policy must answer your customers' key questions clearly, such as:

  • What is the procedure for a return or a refund?
  • How many days does the customer have to return an item or seek a refund?
  • Can the customer use their own packaging?
  • Do customers need to include the order or return slip?
  • What is the time frame in which the refund will be processed?
  • How will the refund be processed?
  • Do you offer alternative types of refunds, like store credit?

What is not included in a refund policy template?

When writing a refund policy, you should always avoid anything that may make your customers believe that the refund policy isn't going to be easy.

Your policy must be easy to understand and provide immediate answers. In other words, don't use complicated legal jargon or wording, which may confuse your customers.

Name Product Legal document services available Free legal documents available? Other legal services offered Price Document library size
Sprintlaw
Professionally drafted documents
Some documents are free to download. Get access to all documents with a membership.
Business, consumer law, E-commerce, data and privacy, finance, consumer law
Price varies per document.
Enjoy free custom quotes and fixed-fees on legal documents and services for startups and small businesses.
Lawpath
Customisable document templates
You can view samples for free and you can create your first document for free.
Online document eSignatures, lawyer marketplace, on-demand legal advice, business setup services
$288 per year for unlimited documents
300+
Customise and download up to 300 legal documents for business or personal matters. Plus register a company, business name or ABN.
LawDepot
Customisable document templates
Free one week trial available which gives access to hundreds of documents.
Free legal articles and resources
$59.88 per year for unlimited documents or one-off documents available for $9.50 - $49
150+
Customise and download legal documents in as little as five minutes. Plus, LawDepot offers peace of mind with two service guarantees.
Legal123
Customisable document templates
No
Custom legal services available, free law change updates via email, legal packages for various professions
Individual templates start from $59 + GST
Legal123 offers a range of individual templates or document packages for consultants, app developers, personal trainers and more.
LegalVision
Customisable document templates & professionally drafted documents
No
Legal advice phone consultations, contract reviewing and amendments, trade mark applications, business structure assistance.
From $49 + GST per week for access to 40+ legal templates
40+
Take advantage of unlimited legal advice consultations, free legal templates and fast turnaround times for legal projects with LegalVision membership.
loading

Compare up to 4 providers

How effective is a refund policy?

A refund policy is an effective tool to avoid returns frauds and abuses. This includes falsified receipts or trying to return something which has been used or worn.

It can be tempting to eliminate returns and refunds altogether. However, in addition to being required under Australian consumer law, customers are more likely to trust retailers and businesses that offer an easy way to process refunds. Providing your consumers with a clear refund policy will help to build a solid relationship based on trust. It will also help your business easily manage any refund request and process the case by following specific and practical guidelines.

Your refund policy will be even more effective if you educate your staff on how to use it. This will help reduce the time spent on processing refunds.

How do I write a refund policy?

Businesses can develop their own refund policy based on their needs and the nature of goods or services that they sell. When writing your policy, you should always keep in mind your customers' satisfaction and keep it easy to understand. By using simple and polite language, you will make the refund process more straightforward for your staff as well.

An effective returns policy will provide immediate answers to your customers' key questions. For this reason, you must always be upfront about all the conditions for being eligible for a refund.

There are several refund policy templates available online that you can use as a solid foundation for writing your own policy. If your business has specific conditions about refunds, or you sell expensive products and services, you might want to consider having a lawyer review or help draft your policy.

Where to get a free refund policy template?

  • Wonder.Legal. This site provides a step-by-step process to complete your personalised refund policy template.
  • Lawpath. You can create your first document, including a refund policy template, for free.

More guides on Finder

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.
Go to site