Failures, Complaints and Official Sources
Air conditioner and heat pump warranties vs consumer guarantees: your rights under the Australian Consumer Law
How manufacturer warranties, installer workmanship warranties and the Australian Consumer Law guarantees apply to split systems, ducted units and heat pump water heaters.
When an air conditioner or heat pump water heater fails in Australia, you have two layers of protection: the manufacturer's warranty (and any installer workmanship warranty), which is a promise with its own terms and time limit, and the consumer guarantees under the Australian Consumer Law (ACL), which apply automatically and cannot be excluded, even after the warranty ends. The guarantees require products to be of acceptable quality and fit for purpose, and services such as installation to be carried out with due care and skill. If the failure is major, you can choose a refund or replacement; if it is minor, the business can choose to repair it within a reasonable time. This guide explains how the layers fit together. It is part of where to get help.
This is general information, not legal advice.
The layers of protection
| Protection | Source | Who it is against | Time limit |
|---|---|---|---|
| Consumer guarantees for goods | Australian Consumer Law (Schedule 2 to the Competition and Consumer Act 2010) | Mainly the seller; some against the manufacturer | A reasonable time, depending on the product, price and use |
| Consumer guarantees for services | Australian Consumer Law | The business that provided the service (installation) | A reasonable time |
| Manufacturer's warranty against defects | Warranty document | Manufacturer | As stated, often different for parts, compressor and tank |
| Installer's workmanship warranty | Quote or contract | Installer | As stated |
| Extended warranty | Separate paid contract | Provider | As stated; may add little to ACL rights |
Goods guarantees in practice
Products must be of acceptable quality: safe, durable, free from defects, acceptable in appearance and fit for their usual purposes. They must also be fit for any purpose you told the seller about, match the description and match any sample.
Applied to heating and cooling:
- A split system that stops heating after two winters may not have been of acceptable quality, depending on what a reasonable consumer would expect for its price and type.
- A heat pump sold as suitable for your cold-climate town that cannot deliver hot water in winter may not be fit for the disclosed purpose.
- A unit that is much louder than its stated noise level may not match its description.
Services guarantees: installation
Installation is a service. It must be:
- provided with due care and skill;
- fit for any specified purpose (for example, "keep the living room at 21°C in winter" if you told the installer that);
- delivered within a reasonable time if no time was agreed.
Leaking condensate lines, poorly sealed wall penetrations, outdoor units mounted without proper brackets or clearances, and refrigerant leaks from poor flare joints are typical workmanship issues. More examples are in common installation mistakes and, for hot water, heat pump hot water problems.
Major versus minor failures
| Major failure | Minor failure |
|---|---|
| A reasonable consumer would not have bought it knowing the problem | Can be fixed in a reasonable time |
| Significantly different from description or sample | Does not stop the product being used as intended |
| Substantially unfit for its normal or disclosed purpose and cannot easily be fixed | |
| Unsafe | |
| You choose: refund or replacement (goods), or cancel and refund / compensation (services) | Business chooses: repair, replacement or refund; must be done within a reasonable time |
If a minor failure is not fixed in a reasonable time, you may be able to get it fixed elsewhere and recover reasonable costs, or reject the goods.
You may also claim compensation for reasonably foreseeable consequential loss, such as water damage to a ceiling from a leaking ducted unit.
Who to approach: seller, installer or manufacturer?
- Seller. Your main consumer guarantee rights are against the business that sold you the product, which is often the installer.
- Manufacturer. You can claim under the warranty directly, and some guarantees (such as acceptable quality) can also be enforced against the manufacturer.
- Installer for workmanship, if different from the seller.
A common problem is the seller and manufacturer each blaming the other. You do not have to referee: the seller cannot send you away to the manufacturer if your claim is under the consumer guarantees.
What a warranty document must contain
A warranty against defects must include mandatory text set by regulation 90 of the Competition and Consumer Regulations 2010, beginning "Our goods come with guarantees that cannot be excluded under the Australian Consumer Law", and must state that the warranty's benefits are in addition to your other rights. Read the warranty for:
- separate periods for parts, labour, compressor and tank;
- registration requirements;
- installation by licensed installers (licence guide);
- maintenance requirements, such as cleaning filters or servicing intervals;
- exclusions, for example coastal corrosion without a protective coating.
Failing to register the warranty does not remove your consumer guarantee rights.
Worked example: a ducted unit failing after the warranty
Illustrative scenario. A ducted reverse cycle system bought for $15,000 has a 5-year manufacturer warranty. In year 6 the compressor fails. The manufacturer says the warranty has expired.
- The ACL asks whether a reasonable consumer would expect a compressor in a $15,000 ducted system to last more than six years with normal use and maintenance.
- If the answer is likely yes, the consumer guarantee may still apply.
- The consumer writes to the seller citing the consumer guarantees, attaches service records showing maintenance, and asks for repair at no cost within 21 days.
- If refused, the consumer contacts the state consumer agency and, if needed, applies to the tribunal.
This is illustrative; outcomes depend on the facts.
Extended warranties
Retailers may offer paid extended warranties. Before buying one, compare what it adds to your free consumer guarantee rights. The ACCC has warned businesses not to misrepresent consumer rights when selling extended warranties.
Frequently asked questions
Do I need to keep the receipt?
Proof of purchase helps, but it does not have to be the original receipt. Bank statements or invoices can work.
Does lack of servicing void my rights?
Not automatically, but if a failure was caused by lack of reasonable maintenance, that can affect whether the product failed the guarantee. Keep service records.
What about a system bought with a home?
Consumer guarantee rights generally relate to buying from a business. Buying a house with an existing system is different; the manufacturer's warranty may transfer depending on its terms.
How long is "a reasonable time"?
There is no fixed number. It depends on the type of product, price, how it was used and what was said about it.
Official sources
- ACCC — consumer guarantees, warranties and refunds
- Federal Register of Legislation — Competition and Consumer Act 2010, Schedule 2
- NSW Fair Trading and Consumer Affairs Victoria — complaints and tribunal guidance
