eBay announced the launch of PayPal Buyer Protection on eBay.com.au, its Australian site. PayPal Buyer Protection provides eBay buyers with free coverage for up to AU$1,500 on qualified eBay.com.au listings paid for with PayPal.

For automatic enrollment, Australian sellers must have a verified Premier or Business PayPal account in good standing and have eBay feedback of more than 50 with at least 98% positive feedback. In addition, to be covered, the listing must be on www.ebay.com.au or another eligible site in qualifying categories and sellers must select PayPal as a payment option when they list the item. PayPal Buyer Protection is only available for tangible goods (items that can be shipped). For eBay transactions not covered by PayPal Buyer Protection, eBay will continue to offer its standard purchase protection program (up to a maximum of AU$400, less AU$25 to cover processing costs) on qualifying items.

If the program works the same as in the U.S., sellers' should know they are liable for 100% of the selling price of the item. See Website and terms of use for full details.

http://www2.ebay.com:80/aw/marketing-au.shtml#2005-02-18145808

http://pages.ebay.com.au/paypal/buyer_protection.html