An electronic signature or e-signature is a method of identifying yourself and indicating your intention to electronically approve or sign information. Instead of signing with a pen onto a printed document, the signing occurs electronically.
In Australia, electronic signatures can meet many legal signature requirements if the applicable conditions are met. The precise requirements will depend on the law governing the document or transaction.
At the Commonwealth level, the Electronic Transactions Act 1999 (Cth) provides the main framework. However, the Commonwealth Act does not apply to every transaction in Australia. States and territories have their own electronic transactions legislation, and particular documents or processes may be subject to exemptions or other legal requirements.
This guide explains what an e-signature is, how electronic signatures work in Australia, the main requirements under Commonwealth law and what to look for before electronically signing a document.
An e-signature, short for electronic signature, is a method of signing or indicating intention electronically rather than using a traditional handwritten signature on paper.
There is no single technical format that every electronic signature must follow under the Commonwealth Electronic Transactions Act 1999.
The Australian Attorney-General’s Department explains that, depending on the circumstances, identity may be shown through methods such as:
Electronic signatures can also take forms such as drawing a signature on a screen, uploading a signature image, clicking an acceptance box or signing through a digital signing platform.
What matters under the Commonwealth framework is not simply whether something looks like a handwritten signature. The method used must meet the requirements that apply to the electronic communication.
In Australia, for many legal signature requirements, electronic signatures are sufficient, but there is no single rule that makes every electronic signature valid for every document or transaction.
At the Commonwealth level, section 10 of the Electronic Transactions Act 1999 addresses situations where a Commonwealth law requires a person’s signature.
In general, the provision calls for a way that shows not only the person but also their intention regarding the information conveyed. The method must also satisfy the relevant reliability or evidentiary requirement and any other applicable conditions.
The Attorney-General’s Department describes the ETA as confirming the default rule that signatures can be made electronically as well as using “wet ink” for Commonwealth processes.
That does not mean every Australian document falls under the Commonwealth ETA.
Australia has both Commonwealth and state or territory electronic transactions legislation.
The Electronic Transactions Act 1999 (Cth) applies to processes under Commonwealth laws. Australian states and territories have their own electronic transactions legislation that may apply to processes governed by their respective laws.
According to the Attorney-General’s Department’s guidance on ETA exemptions, state and territory Acts are generally similar to the Commonwealth ETA but can differ and can have different exemptions.
This means that the law you need to look at can depend on:
For a document with significant legal or financial consequences, the applicable legislation should be checked rather than relying only on the general rules for electronic signatures.
Section 10 of the Electronic Transactions Act 1999 (Cth) is particularly relevant where a signature is required under Commonwealth law.
The requirements can be understood through several key questions.
Requirement | What it means in practical terms |
Identification | A method is used to identify the person signing. |
Intention | The method indicates the person’s intention regarding the information communicated. |
Reliability or evidence | The method is appropriately reliable in the circumstances or is proven in fact to have performed the required identification and intention functions. |
Consent | In circumstances covered by the relevant provision, the recipient may need to consent to the electronic method. |
Applicable requirements | Other legislation, exemptions, government requirements, contractual terms or document-specific rules may need to be considered. |
There must be a method used to identify the person who is signing.
The Commonwealth ETA does not prescribe one universal identification technology for all electronic signatures.
Australian Government guidance gives examples including a typed name, personal mark, personal email or an online identity-verification method.
The appropriate method can therefore depend on the circumstances.
Identification alone is not the whole test.
The electronic method must also indicate the person’s intention regarding the information being communicated.
The Attorney-General’s Department gives examples of intention potentially being shown through a clear agreement, signing in a designated place or something additional in the context of a response.
This is why the context surrounding an electronic signing action can matter.
Section 10 provides alternative ways in which the relevant requirement can be satisfied.
The method may be as reliable as appropriate for its purpose in light of all the circumstances, including any relevant agreement.
Alternatively, it may be proven in fact to have performed the required identification and intention functions, either by itself or together with further evidence.
This means there is no single technology that Australian Commonwealth law universally requires for every electronic signature.
Consent is another consideration that is sometimes overlooked.
The Attorney-General’s Department’s guidance on choice and consent explains that consent can be a condition under the ETA when electronic communications, including signatures, are sent to someone who is not a Commonwealth entity.
Consent does not necessarily have to be express in every circumstance. Australian Government guidance explains that it can sometimes be inferred from conduct or previous dealings.
The particular circumstances should therefore be considered rather than assuming that consent either always or never needs to be obtained.
A Commonwealth entity can specify information-technology, verification or other requirements for signatures required under legislation it administers.
Other laws, exemptions or agreed contractual processes may also affect how a particular document can be executed.
If you’re wondering how to sign a document electronically, it is contingent upon the document and electronic signing service used.
A typical electronic signing workflow may involve:
Look for any specific signing, witnessing or execution requirements in the document.
Determine what law applies to the document and what exemptions or other obligations are available.
The document may be sent via an electronic signing platform or any other electronic means by mutual agreement.
This may involve typing a name, applying or drawing a signature, clicking on an acceptance option or performing some other electronic signing action, depending on the system and situation.
The process may include additional steps to identify or authenticate the signer, depending on the case.
The finished document and the signing records referring to it may be required to be kept as per legal regulations and business requirements.
The Commonwealth ETA also contains provisions concerning electronic documents and records. The Attorney-General’s Department explains that particular criteria apply when Commonwealth requirements for sending, giving or storing documents and information are fulfilled electronically.
Electronic signing can be straightforward, but businesses should avoid assuming that the same process is appropriate for every document.
Before sending a document electronically, consider these five questions.
Determine whether the relevant requirement comes from Commonwealth, state or territory law.
Check the relevant legislation to find out if there is an exemption or other rule that applies to the document.
Some documents or transactions may involve additional requirements. These should be checked separately rather than relying only on the general electronic-signature rules.
Consider what the signing process tells us about who is signing and what they say about the information.
Check the applicable legal and business recordkeeping requirements and determine what evidence of the signing process to keep.
If a transaction will have significant legal consequences for you or you are unsure of the requirements that apply to you, you may wish to seek Australian legal advice.
Electronic signature and digital signature are not necessarily interchangeable terms.
Electronic signature | Digital signature |
The term used in Australia’s Commonwealth electronic transactions framework | Not a term used by the Commonwealth ETA |
Can take different forms depending on the circumstances | Can have different meanings depending on the context |
Can include methods such as typed names, marks, electronic acceptance or signing through a platform | May be used to describe an electronic signature with additional security features |
Must meet the applicable legal requirements where relied upon to satisfy a signature requirement | The precise meaning should be clarified when someone specifically requires a “digital signature” |
The Attorney-General’s Department specifically warns that “digital signature” is not a term used in the ETA and can mean different things in different circumstances.
For example, one person may use “digital signature” as another name for an e-signature, while another may use it to mean an electronic signature with additional security features.
Therefore, if a person, organisation or process specifically requires a “digital signature”, it is worth confirming exactly what type of signature or technology is required.
No particular visual appearance is prescribed for all electronic signatures under the Commonwealth ETA.
An electronic signature does not necessarily have to reproduce the handwritten signature you normally put on paper.
Australian Government guidance explains that, depending on the circumstances, identity could be shown using methods such as a typed name, personal mark, personal email or online identity-verification method.
The relevant question is therefore not simply:
“Does this look like my normal signature?”
The method and circumstances need to satisfy the applicable requirements.
A typed name can potentially be used as an electronic signature.
The Attorney-General’s Department identifies a typed name as one method that could show identity. But that does not mean typing a person’s name anywhere in an electronic document automatically satisfies a legal signature requirement.
The surrounding circumstances still matter, including whether the method identifies the person, indicates their intention and satisfies the other applicable requirements.
You should not assume that every document or legal process can be handled electronically in exactly the same way.
The Commonwealth ETA contains exemptions, while state and territory legislation can have different exemptions and requirements.
Importantly, an exemption from the Commonwealth ETA does not automatically mean paper must be used.
The Attorney-General’s Department explains that an exemption means a person cannot rely on the exempted ETA provision for that process. Another law may separately allow, restrict or modify the use of electronic methods.
That distinction is important.
Where a document involves special execution, witnessing, statutory or other formal requirements, check the legislation applying to that particular document and jurisdiction.
An electronic signing service provides a way to manage electronic signing, but choosing one involves more than checking whether users can place a signature on a document.
Depending on your organisation, documents and regulatory obligations, relevant considerations may include:
The appropriate level of assurance can depend on the transaction and the organisation’s requirements.
Using an e-signature service does not itself determine whether a particular document has been validly executed. The applicable law and circumstances still need to be considered.
Electronic signing can involve the collection, handling and storage of personal information.
Where an organisation is covered by the Privacy Act 1988 and Australian Privacy Principles, those obligations can therefore be relevant to its electronic document processes.
The Office of the Australian Information Commissioner provides guidance covering matters including the collection, notification, use or disclosure, security, access and correction of personal information.
Security is particularly relevant.
Under Australian Privacy Principle 11, an APP entity must take reasonable steps to protect personal information it holds from misuse, interference and loss, and from unauthorised access, modification or disclosure.
The OAIC also explains that reasonable security steps include technical and organisational measures and can involve matters such as ICT security, access security, third-party providers, data breaches and information destruction or de-identification.
Not every Australian organisation is subject to identical privacy obligations, so businesses should determine which privacy requirements apply to them and to the information being handled.
VolkSign provides an electronic signing and document workflow platform for organisations that want to manage signing processes digitally.
When selecting an electronic signing platform, businesses should consider how the service fits their particular document workflows, security requirements, privacy obligations and the legal requirements applicable to the documents they intend to sign.
Using an electronic signing platform does not replace the need to determine whether electronic execution is appropriate for a particular document.
For specific VolkSign capabilities, organisations should refer to the current product information available directly from VolkSign.
The above paragraph can be used for CTA purposes, so it is up to the seo team if they want to use the above paragraph or not
Electronic signatures can provide an alternative to printing, physically signing and scanning documents, but the signing method is only one part of the picture.
For Australian organisations, questions around signer identification, intention, reliability, consent, applicable legislation, document-specific requirements, record keeping and privacy may all need consideration.
Before introducing electronic signing for a particular document or process, identify the law that applies and check whether there are exemptions or additional execution requirements.
Once electronic execution is appropriate, an electronic signing service can provide a structured way to manage the signing process digitally.
Explore VolkSign to learn more about its current electronic signing and document workflow features.
This article provides general information about electronic signatures in Australia. It is not legal advice and does not address every law, exemption, document type or circumstance. Requirements can differ according to the transaction, document and Australian jurisdiction. For advice about a particular document or transaction, consider obtaining advice from a qualified Australian legal professional.
An electronic signature is a method of identifying a person and indicating his or her intention regarding information in electronic form. It can take many forms and need not resemble a handwritten signature.
Electronic signatures can satisfy many signature requirements in Australia. Under Commonwealth law, the Electronic Transactions Act 1999 provides a framework for electronic signatures where Commonwealth law requires a signature. State, territory, document-specific and other legal requirements may also apply.
Electronic signing can mean typing your name, drawing or using a signature, clicking an acceptance option, or using an electronic signing platform, depending on the document and circumstances. The procedure used must still comply with the legal requirements for the document or transaction.
“Digital signature” is not a term used in Australia’s Commonwealth ETA and can have different meanings. Australian Government guidance notes that it may sometimes mean a standard e-signature and in other circumstances an electronic signature with additional security features. If a digital signature is specifically requested, confirm what is required.
The Australian Government guidance notes that a typed name is one way that could show identity. Whether it satisfies a particular legal signature requirement will depend upon the full circumstances and the requirements that apply.
The Commonwealth ETA permits consent to be required in certain circumstances when an electronic signature or other electronic communication is being given to a person other than a Commonwealth entity. Sometimes consent is not given in words but is implied. We should examine the relevant provision and situation.