Major change coming to Kmart and Target refund policy around Australia - here's what you need to know

A major change coming to customer transactions in Kmart and Target stores across Australia in just over three weeks' time has left some shoppers furious. 

The retail giants, which are both owned by parent company Wesfarmers, will require proof of a receipt for 'change of mind' refunds from August 1.

Until now, customers have been able to get refunds just by proving their identity, but the updated policy will mean customers have to hold onto their proof of purchase, which some say is 'annoying'.

A Kmart spokesperson said showing receipts has always been preferred for dealing with refunds, and that it only allowed the use of IDs for refund verification on an ad hoc basis.

'Previously, stores were able to give customers a change of mind refund without a receipt if proof of identity was provided,' Kmart said in a memo shared in an app for workers.

'However, this option is being removed and customers will require a receipt.'

The memo added that posters about the policy change will be displayed in stores and that staff should remind customers to hold on to their receipts.

Kmart has confirmed that the new policy does not apply to returns of faulty products.

'In line with most major retailers in Australia, Kmart and Target will be enforcing its returns policy and requiring proof of purchase for "change of mind" returns,' a spokesperson for Kmart and Target said.

'We are communicating this change extensively across multiple customer touchpoints to ensure our customers are well-informed ahead of this change coming into effect.'

Other forms of proof of purchase for refunds such as online order and bank receipts, and Buy Now Pay Later and Flybuys statements will also be accepted as proof of purchase, as will digital receipts, which are available with the Kmart app.

Customers have also been advised to take pictures of their receipts so they can be stored on their phones.

A Kmart shopper wrote on Facebook that 'You can still go to the original store, and they will look up the receipt for you if you give them the date and time (of the purchase).'

The store said staff doing such a receipt search might also need to see a bank statement or other proof of purchase.

Some customers were furious that the new refunds policy would also apply to Kmart's inhouse Anko range.

'I find this annoying for things that are their own brand, where else am I going to purchase it from?' a shopper posted on social media. 

But some Anko products have been available in Target shops since early 2024, which followed Wesfarmers announcing a merger of the two stores a year ago. 

Some customers said the refund crackdown had already been operating in their nearest outlet.

'Our local Kmart has been doing this for over a year. I don't see why people are outraged,' one said.

Signage about the coming changes is being displayed in stores and on the company's website.

Refund requests have to be made within 60 days from the purchase, unless customers are OnePass members, who get a 12-month refund period.

Some products, such as cosmetics, swimwear, pierced jewelry, bedding and printer cartridges are not eligible for change of mind refunds.