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For centuries, the operation of the law has depended, in many respects, on the contents of written documents and the signatures of the parties to those documents. However, the advent of the electronic age has raised new issues. Not only are many documents in electronic form these days, but so, also, are many signatures. Is a "signature" on an electronic document, created by one or two keystrokes, as good as one which is handwritten in the presence of one or more witnesses?
Late in 1999, the Australian Parliament passed the Electronic Transactions Act, which answers the question in the affirmative. However, the issue is not quite as simple as that. An electronic signature can only be made using special software and authentication procedures. Unless you have the same software, or software capable of recognizing someone else's electronic signature and authenticating it, you will have a problem. There is no one standard at present, so, unless all the parties to an electronic document use the same software and have agreed to use the same authentication procedures, they will be unable to rely absolutely on the electronic signature of any other party.
Another fundamental problem arises out of Australia's federal system. The Electronic Transactions Act will only govern transactions covered by federal law. Most of Australia's commercial activity is conducted under the laws of the states. Until there are uniform or complementary laws in force in all Australian jurisdictions, the Act will be of only limited significance in Australia's electronic commerce landscape.