Fines for safe work breaches

General WHS Offence Categories

Most jurisdictions in Australia have adopted a harmonised WHS law framework, which categorises offenses based on severity:

• Category 1 Offence: The most serious category, involving reckless conduct that exposes an individual to a risk of death or serious injury or illness. Penalties can include imprisonment.

• Category 2 Offence: Failure to comply with a health and safety duty that exposes an individual to a risk of death or serious injury or illness.

• Category 3 Offence: A failure to comply with a health and safety duty.

The maximum fines vary significantly depending on the category of offense and whether the offender is an individual, an officer of a company, or a body corporate.

State-by-State Examples

The following information is based on public sources from each state’s WorkSafe or SafeWork authority. The value of a “penalty unit” can change, so it’s always best to check the current rates for an exact dollar amount.

Victoria (WorkSafe Victoria)

WorkSafe Victoria can issue infringement notices (on-the-spot fines) for certain breaches.

Penalties for infringement notices can be up to 10 penalty units for a corporation (approximately $1,800) and up to 2 penalty units for an individual (approximately $360).

For more serious offenses, prosecutions in court can result in much higher fines. For example, a company was recently fined $140,000 after an excavator damaged powerlines and put a worker at risk.

New South Wales (SafeWork NSW)

SafeWork NSW uses a system of improvement notices, prohibition notices, and penalty notices.

A penalty notice can be issued for a serious offense without going to court. The amounts are lower than the maximum court-imposed fines.

Court penalties for breaches of WHS duties are tiered, with the most severe (Category 1) reaching up to $10,425,000 for a body corporate.

Queensland (WorkSafe Queensland)

WHS offenses are categorised into three tiers with significant maximum penalties.

Category 1:

• Body corporate: Up to 30,000 penalty units (approximately $3,809,300)
• PCBU or officer: Up to 6,000 penalty units (approximately $800,700) or 5 years imprisonment.
• Worker: Up to 3,000 penalty units (approximately $400,350) or 5 years imprisonment.

Category 2:

• Body corporate: Up to 15,000 penalty units (approximately $2,001,750)
• PCBU or officer: Up to 3,000 penalty units (approximately $400,350)
• Worker: Up to 1,500 penalty units (approximately $200,175)

Category 3:

• Body corporate: Up to 5,770 penalty units (approximately $667,250)
• PCBU or officer: Up to 1,000 penalty units (approximately $133,450)
• Worker: Up to 500 penalty units (approximately $66,725)

South Australia (SafeWork SA)

SafeWork SA also has a tiered penalty system, similar to the harmonised model.

Maximum penalties for a Category 1 offense can be up to $3,000,000 for a body corporate.

Expiation notices (on-the-spot fines) for specific contraventions of the WHS Act and Regulations also apply. For example, failing to notify of a “notifiable incident” can incur an expiation fee of $600 for an individual and $3,000 for a corporation.

Western Australia (WorkSafe WA)

WorkSafe WA can issue caution notices, infringement notices, and initiate criminal prosecution.

Infringement notices have modified penalties set out in the regulations.

For a prosecution, fines can be substantial. An employer who doesn’t hold the required insurance can be fined up to $10,000 for each worker employed.

Tasmania (WorkSafe Tasmania)

WorkSafe Tasmania has the power to issue improvement notices, prohibition notices, and infringement notices.

The value of a penalty unit is reviewed annually.

It is an offense to intentionally damage or remove an improvement notice that has been displayed.

Northern Territory (NT WorkSafe)

NT WorkSafe follows the harmonised WHS laws.

Maximum penalties for a Category 1 offense for a body corporate can be up to 65,000 penalty units.

Recent court cases show combined penalties for companies and directors in the tens of thousands of dollars for WHS breaches.

Australian Capital Territory (WorkSafe ACT)

WorkSafe ACT’s penalties are also categorised and have high maximums.

Maximum penalty for a Category 1 offence for a body corporate is $10,425,000.

Infringement notices are also used, with unpaid fines potentially leading to referral to the Magistrates Court.

How to avoid WHS fines

To avoid fines, Australian businesses must proactively manage their work health and safety (WHS) obligations. This involves establishing and maintaining a robust safety management system, which goes beyond simply reacting to incidents.

Key actions include:

• Proactive Risk Management: Regularly identify workplace hazards and assess their risks.
• Implement Effective Controls: Apply the hierarchy of controls to eliminate or minimise risks, such as engineering controls or personal protective equipment.
• Training and Supervision: Provide comprehensive training, instruction, and supervision to all workers, including contractors, to ensure they are competent in performing their tasks safely.
• Consultation: Actively consult with workers and their health and safety representatives on all WHS matters.
• Record Keeping: Maintain thorough records of risk assessments, training, and incident reports to demonstrate compliance.