Cooling-off period

Buying a new mobile phone or signing up for a long-term data plan is a significant commitment. A cooling-off period acts as a safety net, allowing you to change your mind and cancel a contract within a specific timeframe without facing heavy penalties. This page explains when these rights apply, how long you have to make a decision, and what your responsibilities are as a consumer if you decide to opt out. We will cover the differences between buying a physical product versus a service, and what to expect from your provider during this process.

When does the cooling-off period apply?

In Australia, a mandatory cooling-off period primarily applies to unsolicited consumer agreements. 

These occur when a telco or salesperson contacts you via

  • Telemarketing: An unexpected phone call.
  • Door-to-door sales: Someone visiting your home.
  • Public space sales: Being approached in a shopping centre walkway, away from a permanent storefront.

While many major providers offer “satisfaction guarantees” or “network trial periods” for online or in-store purchases, these are often voluntary commercial policies rather than a legal cooling-off requirement. However, if you were “cold-called” or approached unexpectedly, you have a legal right to a 10-business-day cooling-off period.

When does the cooling-off period start?

For products

For physical goods, such as a mobile handset, tablet, or modem, the cooling-off period begins the day after you receive the product. This gives you time to inspect the device and ensure it meets your expectations.

For services

For services, such as a SIM only, 5G home internet or an NBN plan, the period begins the day after you receive a copy of the signed agreement. If the agreement was made over the phone or via a digital message, the period starts the day after the provider sends you the written contract documentation.

When does the cooling-off period not apply?

  • If you proactively visited a telco shop to buy a phone and/or a mobile plan.
  • If you navigated to the provider’s website or app yourself and signed up (as these are considered ‘solicited’ sales and do not trigger a legal cooling-off period).
  • If the purchase was under $100. Small accessories or prepaid SIMs at or below this value aren’t covered by unsolicited agreement laws.
  • If you reached out to the provider via their official social media channels or web-chat to request a service.

In these cases, you are instead covered by Consumer Guarantees. This means you can only return the product or cancel the service if there is a “major failure” (e.g., the phone is broken or the service doesn’t work as advertised).

Your provider must inform you about the cooling-off period

Under the Australian Consumer Law, providers have strict rules they must follow during an unsolicited sale. If they fail to do these things, your cooling-off period may actually be extended (sometimes up to 6 months).

  • The provider must give you a written copy of the agreement immediately (if in person) or within five business days (if over the phone).
  • The contract must include a front-page notice informing you of your right to cancel.
  • For door-to-door sales, providers generally cannot take payment or supply any goods/services over $500 during the 10-day cooling-off period.

How to cancel a purchase during the cooling-off period

If you are within the cooling-off window and want to cancel, you can do so either verbally or in writing.

  1. Contact the provider: Call their customer service line, visit a store, or use their digital cancellation tool. Under 2026 regulations, providers are encouraged to make the cancellation process as seamless as the sign-up process.
  2. Clearly state: “I am exercising my right to cancel this agreement under the cooling-off period.”
  3. Keep a record: Note the time, date, and name of the representative. If you use an online portal, take a screenshot of the confirmation page.

Once you notify them, the agreement is considered “voided,” as if it never existed.

Who pays when the cooling-off period is applied?

The financial side of a cancellation depends on what has been used and what has been delivered.

  • Refunds: The provider must refund all money you have paid under the agreement.
  • Returning products: You are responsible for returning any handsets or equipment to the provider. If the provider does not collect the goods within 30 days of your cancellation notice, the goods usually become yours to keep for free (though this rarely happens as telcos are quick to arrange returns). Most providers will supply a ‘Reply Paid’ address or a digital return label so you can post the device back at no cost to you.
  • Service costs: If you have already started using a service (e.g., you made calls or used data), the provider may charge you a pro-rata amount for what you actually used up until the moment of cancellation.
  • Damaged goods: If you have used the handset and it is damaged (beyond normal wear and tear), the provider may be entitled to seek compensation for the diminished value of the device.