The country's consumer watchdog took the tech giant to court last year following complaints from users about faulty devices.
Apple admitted that it misled 275 people about their rights to remedies such as repairs and replacements.
The Federal Court of Australia found those actions breached consumer law.
The investigation followed complaints about Apple's so-called "error 53" - the fault rendered iPhones and iPads inoperable, after users downloaded a software update.
But when customers sought repairs, Apple denied some of them assistance because their devices had previously been fixed by a third party, the Australian Competition and Consumer Commission (ACCC) said.
"The court declared the mere fact that an iPhone or iPad had been repaired by someone other than Apple did not, and could not, result in the consumer guarantees ceasing to apply," Commissioner Sarah Court said on Tuesday.
The watchdog said Apple had contacted about 5,000 customers to compensate them for the error.