An Australian As-Is Bill of Sale is a written legal document that records the sale and transfer of ownership of goods in their current condition, without any warranty or guarantee as to their quality, fitness for purpose, or condition beyond what is expressly disclosed in the document. The as-is clause communicates to the buyer that the seller is not making any representation about the quality or condition of the goods beyond what can be observed on inspection, and that the buyer accepts the goods with all their faults and limitations.

An as-is Bill of Sale is used when the seller wishes to sell goods without assuming ongoing liability for the condition of those goods after the sale. It is commonly used for private sales of used goods — such as electronics, furniture, vehicles, tools, musical instruments, and other personal property — where the seller cannot reasonably be expected to warrant the ongoing performance of aged or second-hand items.

However, sellers and buyers in Australia must understand an important legal limitation: an as-is clause cannot exclude the mandatory consumer guarantees provided by the Australian Consumer Law (ACL), which is Schedule 2 to the Competition and Consumer Act 2010 (Cth). Section 64 of the ACL provides that any term of a consumer contract that purports to exclude, restrict, or modify a consumer guarantee is void to the extent of that exclusion. The consumer guarantees that apply to sales of goods in trade or commerce include guarantees of acceptable quality, fitness for a disclosed purpose, correspondence with description, and title. These guarantees cannot be excluded by an as-is clause.

The as-is clause is therefore most effective in two situations: first, in a purely private sale between non-business individuals (where the ACL consumer guarantees do not apply, although the prohibition on misleading conduct still applies); and second, in business-to-business sales where neither party is a consumer under the ACL (defined as an individual who acquires goods or services ordinarily acquired for personal, domestic, or household use with a price of $100,000 or less, subject to certain exceptions).

Despite the limits of an as-is clause, the document remains valuable because it records the known condition of the goods at the time of sale, including any known defects disclosed by the seller, and provides a clear record of what was agreed between the parties.

An Australian As-Is Bill of Sale is needed whenever goods are sold in their current condition and the seller wishes to limit or exclude ongoing warranty obligations, subject to the applicable requirements of the Australian Consumer Law. Common situations include:

Private sales of used goods. When an individual sells second-hand items — such as electronics, furniture, appliances, sporting equipment, or musical instruments — through an online classifieds platform or at a garage sale, an as-is Bill of Sale documents the condition of the goods at the time of sale and confirms that the buyer is accepting the goods in that condition.

Vehicle and equipment sales with known defects. When a vehicle, piece of equipment, or machinery has known defects or is not in perfect working order, an as-is Bill of Sale documents those defects and the buyer’s acknowledgement of them.

Business liquidation or surplus asset sales. When a business sells surplus, obsolete, or end-of-life assets, tools, or equipment, an as-is Bill of Sale records the transfer of those assets and limits the seller’s exposure for post-sale claims.

Sales by estates and executors. When a deceased estate or executor sells personal property belonging to the estate, an as-is Bill of Sale is appropriate because the estate typically cannot make representations about the history or condition of the goods.

Distressed or discounted goods. When goods are sold at a significant discount due to damage, defects, or age, an as-is Bill of Sale ensures that the buyer understands and accepts the condition of the goods.

A well-drafted Australian As-Is Bill of Sale should include the following key elements:

Description of goods. The goods should be described with sufficient precision to identify them, including make, model, serial number (where applicable), quantity, colour, and condition. The more detailed the description, the more protection the document provides.

Known defect disclosure. All known defects and damage should be expressly disclosed in the Bill of Sale. This protects the seller from claims of misleading conduct and ensures the buyer is fully informed.

As-is clause with ACL acknowledgement. The as-is clause must exclude warranties to the maximum extent permitted by law, while expressly acknowledging that consumer guarantees under the Australian Consumer Law that cannot lawfully be excluded continue to apply to sales in trade or commerce.

Purchase price and GST treatment. The price must be stated in Australian Dollars (AUD) and the GST treatment specified: GST inclusive, GST exclusive, or not subject to GST for private sales.

PPSR disclosure. For goods that may be subject to a PPSR security interest (such as equipment, vehicles, or business assets), the seller should confirm whether a PPSR search has been conducted and disclose any registered security interests.

Transfer of title and risk. The Bill of Sale should specify when title and risk of loss pass to the buyer, and which party is responsible for collection and transport.

Title warranty. Even in an as-is sale, the seller should warrant that they have the legal right to sell the goods and that the goods are free from undisclosed encumbrances.