Are eSignatures Legally Binding in Australia?

Electronic signatures are legal in Australia and their use is controlled by the Electronic Transactions Act 1999 (ETA) and its regulations, the Electronic Transactions Regulations 2020 (ETR). The ETA establishes requirements of Australian Commonwealth Law for e-signatures, consent, and document retention. These requirements often apply when dealing with Commonwealth government bodies or when transactions are being carried out under specific legislation. Due to Australia’s federal nature, the states and territories also have their own e-signature laws (Local ETA). These mostly follow the ETA but have varying limitations and exemptions.

Documents that can be electronically signed

The following types of transactions are eligible for the use of electronic signatures in Australia:

Life sciences
Technology
Insurance
Healthcare
Education
Procurement
HR
NDAs
Documents to be recorded
Software licensing

Documents that may not be electronically signed

Even though the use of electronic signatures is not prohibited in the below document types, caution should be taken, as they may not be permitted.

Consumer transactions
Chattel paper
Banking
Real estate
Lending
Documents to be notarised
Government filings
Corporate resolutions

Types of e-signature permitted in Australia

The ETA does not provide a set definition of an electronic signature, but, it does state that an e-signature will be considered legal and enforceable if it meets the following requirements:

A method (such as the type of e-signature) is used to identify the signer and confirm their intention to sign the document
The chosen method is reliable and suitable for the purpose of the transaction or is proven to verify the signer’s identity and confirm their intention to sign and
The signer provides their consent to the chosen method, with that consent allowed to be expressed or implied based on the circumstances.

Generally, under common law, e-signatures do not need to meet the ETA requirements to be enforceable. However, specific use cases involving the government or when required by law, may need an electronic signature that adheres to the criteria of the ETA.

Notable legality changes since 2020

None.

Publicly Accessible Links to Laws/Regulations Discussed

Disclaimer

The content provided on this website is meant for general informational use only and does not constitute legal advice. Legal regulations on this topic can evolve rapidly, so E-Sign does not ensure that the information presented here is always up-to-date or accurate. If you have particular legal concerns regarding any details on this site, it is recommended that you consult with a licensed attorney in your jurisdiction.

Last Updated 9th October 2024

The Legality of eSignatures in Australia

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