Increased WHS Penalties and New Compliance Landscape in NSW
Major Penalty Reforms Introduced
The NSW Government has significantly escalated penalties for breaches of the Work Health and Safety (WHS) legislation. As of last year, maximum penalties—excluding those for industrial manslaughter—are now based on penalty units, which are adjusted annually.
Industrial Manslaughter
Industrial manslaughter offences, involving a death caused by a breach of health and safety duties with gross negligence, now carry the following maximum penalties:
- Individuals: 25 years’ imprisonment
- Corporations: $20 million
Category 1 Offences (2024–2025)
These involve a breach of a health and safety duty with a risk of death or serious injury/illness, and involve gross negligence or recklessness and maximum penalties of:
- Individual: $1,088,355
- Individual conducting a business or undertaking (PCBU): $2,264,498 and up to 10 years’ imprisonment
- Corporation: $10,888,858
Category 2 Offences (2024–2025)
Breach of a health and safety duty with a risk of death or serious injury/illness, without gross negligence and maximum penalties of:
- Individual: $218,321
- PCBU: $436,642
- Corporation: $2,182,973
Category 3 Offences (2024–2025)
General breach of a health and safety duty and maximum penalties of:
- Individual: $73,094
- PCBU: $146,189
- Corporation: $739,949
Penalties will increase in 2025–2026 as penalty unit values rise.
Compliance with Codes of Practice to Become Mandatory
Forthcoming legislative changes will introduce a new duty on businesses to comply with prescribed WHS Codes of Practice. A breach of this duty can be prosecuted as may attract category 1–3 offences or industrial manslaughter where a breach causes death.
The first prescribed code is expected to be the NSW Code of Practice: Managing Psychosocial Hazards at Work. This means businesses must pay close attention to the code’s detailed requirements and proactively manage risks related to employee and contractor exposure to psychosocial hazards.
