Electronic signatures (also known as e-signatures) are widely used
in Australia for business transactions. All types of electronic signatures are
considered equally as enforceable and accepted as traditional "wet" signatures in
Australia provided that it satisfies the following three conditions:
The Electronic Transactions (ET) Act 1999, which applies to transactions regulated by Commonwealth laws, is the key legislation at the Commonwealth (i.e., national) level. The Electronic Transactions Regulations, 2000 stipulate certain transactions and Commonwealth legislation are exempt from the Act and hence require a traditional signature. In addition, each Australian state and territory has its own electronic transactions legislation, which largely mirrors the Commonwealth ET Act but has some exclusions that apply when a transaction is governed by the relevant State or Territory laws.
The legality of documents signed electronically has been upheld in several Australian court cases. The "reliability" condition, on the other hand, seems to have a low threshold. Hence, use of certificate-based digital signatures, such as cloud signatures, should be considered as part of the workflow risk management strategy when doing business with other jurisdictions where e-signature validity may be assessed differently or for a particular compliance requirement.
- Identify the signatory and indicate whether they intend to sign the relevant document or transaction.
- Be either as reliable as the transaction or document to be signed requires; or be proven in fact, either alone or in combination with other evidence, to identify the signatory and their intent to sign the relevant document or transaction.
- Clearly show that the recipient to whom the signature has been provided consented to the signing method used.
The Electronic Transactions (ET) Act 1999, which applies to transactions regulated by Commonwealth laws, is the key legislation at the Commonwealth (i.e., national) level. The Electronic Transactions Regulations, 2000 stipulate certain transactions and Commonwealth legislation are exempt from the Act and hence require a traditional signature. In addition, each Australian state and territory has its own electronic transactions legislation, which largely mirrors the Commonwealth ET Act but has some exclusions that apply when a transaction is governed by the relevant State or Territory laws.
The legality of documents signed electronically has been upheld in several Australian court cases. The "reliability" condition, on the other hand, seems to have a low threshold. Hence, use of certificate-based digital signatures, such as cloud signatures, should be considered as part of the workflow risk management strategy when doing business with other jurisdictions where e-signature validity may be assessed differently or for a particular compliance requirement.
