Consignment in Australia: Modern Asset Sales for Cash Flow

As Australians look for flexible ways to manage cash flow and offload surplus goods, consignment has emerged as a practical solution for businesses and individuals alike. Whether you’re a retailer with excess inventory, a car owner considering a dealership partnership, or a creative selling artwork, consignment can offer a low-risk, mutually beneficial arrangement.

How Consignment Works in 2025

At its core, consignment is a simple concept: one party (the consignor) provides goods to another (the consignee) to sell on their behalf. The consignee sells the items and, after deducting an agreed-upon commission or fee, passes the proceeds back to the consignor. The consignor retains ownership until the goods are sold.

• Retailers use consignment to expand their range without upfront purchasing costs.

• Automotive dealers sell cars on behalf of private owners, often fetching higher prices than direct trade-ins.

• Artisans and designers use consignment boutiques to reach new audiences without investing in their own retail space.

In 2025, digital platforms like CarNextDoor and curated online marketplaces have made consignment more accessible, with transparent tracking, digital contracts, and instant notifications when items sell.

Benefits of Consignment for Australians

The popularity of consignment is growing across Australia, driven by several key advantages:

• Improved Cash Flow: Businesses can free up working capital by shifting unsold stock through consignment, while individuals avoid the hassle of private sales.

• Reduced Risk: Consignors only pay a commission if the item sells, protecting them from outright losses on unsold goods.

• Access to New Markets: Consignment partners often have established customer bases and marketing channels, helping goods reach buyers who might otherwise be out of reach.

• Flexible Arrangements: Consignment contracts can be tailored for short-term sales, seasonal stock, or one-off items like vehicles and antiques.

For example, in 2025, regional Australian clothing designers are increasingly consigning with urban boutiques to expand their reach and test the market before committing to wholesale distribution.

Risks, Legal Considerations, and 2025 Policy Updates

While consignment offers clear benefits, there are important risks and legal issues to consider:

• Ownership and Insurance: Since the consignor retains ownership, insurance coverage must be carefully checked. Some consignment agreements now specify mandatory coverage for goods in transit and on-site.

• Contract Clarity: 2025 saw new ACCC guidance on consignment contracts, emphasizing the need for clear terms on payment schedules, unsold goods, and dispute resolution.

• GST and Tax Implications: The ATO has updated its treatment of consignment sales, reminding consignors and consignees that GST is payable when goods are sold, and both parties must keep meticulous records for compliance.

For instance, a Melbourne-based electronics retailer recently used consignment to clear last season’s stock via a national chain, but required a watertight agreement outlining liability for loss or damage. Legal advice and standardised consignment templates—now widely available through industry bodies—help reduce these risks.

Future Trends: The Digital Consignment Boom

Looking ahead, the consignment model is set to become even more prevalent as Australians embrace sustainability and circular economy principles. Expect to see:

• AI-powered pricing tools that automatically adjust asking prices to reflect real-time demand and market trends.

• Blockchain-enabled contracts for transparent, tamper-proof consignment agreements—already piloted in the luxury goods sector.

• Growth in peer-to-peer consignment apps for everything from sporting goods to high-end electronics.

These innovations, coupled with ongoing regulatory support, will make consignment an attractive option for anyone seeking to unlock value from surplus assets in 2025 and beyond.