July 1 increase
The financial threshold definition for consumers protected by consumer law will increase from $40,000 to $100,000 effective from 1 July 2021
Businesses selling goods or services valued up to $100,000 are required comply with the consumer guarantees set out and published as required by the ACL.
What are Consumer Guarantees?
Consumer guarantees protect consumers when they purchase goods or services up to these new values. The law now applies to more goods and services as a result of the increased threshold. If you already offer warranty, the ACL guarantees will apply where your warranty falls short of the rules.
Guarantees relate to safety, quality of products, expectations of function, description, being fit for purpose and having spare parts available. Some exceptions apply to protect the supplier, particularly if a customer changes their mind or damaged the item.
It’s vital to appreciate the Australian Consumer Law and how it affects your business, so you don’t get caught out by the changes. If you’re unsure how this impacts your business please get in touch and we will direct you to a local expert for advice.
Get in touch!
If your business is located in Capalaba, anywhere in Queensland or northern NSW, contact Accountants 2 Business for quality accounting services.
Call 07 3823 2344 today or leave your information on our easy to complete contact form.
The information in this article is general in nature and might not be right for your circumstances. Please arrange a meeting with one of our Accountants to discuss your particular needs.
