Beefed-up officer due diligence included in Victoria's OHS overhaul

Stuart Pill, Stephen Silvapulle, Tori Walker, Ruby Zhou
01 Sep 2026
6 minutes

New OHS due diligence obligations for Officers in Victoria and new civil contravention penalties to be introduced.

The Occupational Health and Safety Amendment (Dangerous Goods) Act 2026 (Vic) (Act) passed the Victorian Parliament on 28 July 2026. It amends the Occupational Health and Safety Act 2004 (Vic) (OHS Act) to bring the regulation of dangerous goods within the principal OHS framework.

The Act also introduces a range of other broad changes, including new enforcement tools, civil penalties, and new officer due diligence obligations across all sectors and hazards.

The commencement date for the new legislation is 26 April 2028 unless "proclaimed" earlier by the Minister. Given prior comments of WorkSafe Victoria indicating that duty holders and industry would be given "sufficient lead-time to implement required changes", we expect that a commencement in 2027 is possible.

Key takeaways

Given the sweeping nature of the changes, businesses and officers should consider how transition and compliance steps will be managed, including by:

  • developing a due diligence framework and checklist;

  • assessing governance and board-level frameworks to ensure officers can demonstrate due diligence compliance, including reviewing how the business acquires WHS knowledge, manages hazard information, and resources compliance activities;

  • reviewing existing insurance and indemnity arrangements in light of the new prohibition on insuring or indemnifying civil penalty liability under the OHS Act; and

  • undertaking training for officers, managers, and employees on the new aggravated and reckless conduct offences, and establishing or refreshing incident reporting and response processes to demonstrate active risk management;

  • reviewing current dangerous goods handling practices and procedures to identify any gaps against the new general duty to handle goods safely and without risks to health, safety, and property; and

  • identifying whether any sites, structures, or plant contain asbestos installed on or after 1 January 2004 and, if so, preparing for the new notification and asbestos management plan obligations.

New offences for aggravated and reckless breaches of general duties

The Act introduces a new separate offence for contraventions of section 21 of the OHS Act (the general duty to maintain a safe workplace) that results in, or is likely to result in, endangerment to health and safety where the employer knew or reasonably should have known of this risk. This aggravated offence carries penalties of up to 4,000 penalty units (currently $836,400) or five years’ imprisonment (or both) for a natural person, and 20,000 penalty units (currently $4,182,000) for a body corporate.

The Act also introduces a parallel aggravated offence for dangerous goods breaches with equivalent penalties.

A further and more severe offence is also introduced for reckless conduct in the handling of dangerous goods that places, or may place, another person in danger of serious injury or death. This offence is an indictable offence and carries the most severe penalties under the Act: up to 5,000 penalty units (currently $1,045,500) or 10 years' imprisonment (or both) for a natural person, and 40,000 penalty units (currently $8,364,000) for a body corporate.

Officer due diligence obligations

A critical new provision is the introduction of a positive duty of due diligence on officers of bodies corporate. This change brings these obligations in line with the due diligence obligations that apply in all other States and Territories of Australia.

If a body corporate has a duty or obligation under the OHS Act or the regulations, an officer of that body corporate must exercise due diligence to ensure that the body corporate complies. "Due diligence" is broadly defined to include:

  • taking reasonable steps to acquire and keep up-to-date knowledge of workplace health and safety;

  • understanding the nature of the business operations including the handling of dangerous goods and the associated hazards and risks;

  • ensuring the body corporate has and uses appropriate resources and processes to eliminate or minimise risks;

  • ensuring appropriate processes exist for receiving and responding to information about incidents, hazards, and risks; and

  • ensuring the body corporate implements processes for complying with its duties under the OHS Act.

Failure to comply with the above requirements is an offence regardless of whether the body corporate is found to have failed to comply. This provision replaces the existing officer liability provisions in ss 144 and 145 of the OHS Act. Under these sections an officer could be prosecuted for a breach by the employer if that breach was because the officer failed to take reasonable care. By contrast, the new provision legislates a higher standard and a separate positive duty.

New civil penalty regime

The Act introduces, for the first time under the Victorian OHS framework, a comprehensive civil penalty regime alongside criminal sanctions.

Therefore, in addition to criminal prosecution for breaches of the OHS Act (which requires proof beyond reasonable doubt), a civil proceeding for contravention (requiring proof on the balance of probabilities) can now be brought. Under this new regime, WorkSafe may apply to a court for a contravention order in respect of a person. Where a contravention order is made, the court may impose a civil penalty up to the maximum amounts set out in new Schedule 2 of the OHS Act, which lists 57 civil penalty provisions spanning the full breadth of the OHS Act, including:

  • the general OHS duties of employers, self-employed persons, employees, designers, manufacturers, suppliers and installers of plant (sections 21 - 31);

  • consultation obligations (sections 35 and 35A);

  • the new general duty to ensure dangerous goods are handled safely (section 35B);

  • incident notification and site preservation duties (sections 38 - 39);

  • licensing and registration requirements (section 40);

  • obligations relating to health and safety representatives (sections 62 - 63);

  • asbestos removal and management plan requirements (sections 94B - 94Q);

  • duties to assist and cooperate with inspectors (sections 100 - 122);

  • obligations of related entities and officers to comply with directions (sections 124B - 124C);

  • the prohibition on insuring or indemnifying against pecuniary penalties (section 148B); and

  • the offence of concealing or providing false or misleading information (section 153).

The civil penalty amounts are significant and broadly mirror the penalty framework applicable to criminal offences. For example, the civil penalty for a contravention of the general dangerous goods duty (section 35B(1)) is up to 2,000 penalty units (currently $418,200) for a natural person and 10,000 penalty units (currently $2,091,000) for a body corporate. Notably, the Act prohibits any contract or arrangement that purports to insure or indemnify a person for liability to pay a pecuniary penalty under the OHS Act.

New duty regarding the handling of dangerous goods

A significant change is the introduction of a standalone general duty in relation to dangerous goods, which does not currently exist in the DG Act, and mirrors some of the general OHS obligations.

Under this new duty, any person involved in the handling of dangerous goods must ensure, so far as is reasonably practicable, that the goods are handled in a manner that is safe and without risks to health, safety, and property.

The duty also includes specific obligations to provide and maintain safe processes, systems, and plant, and to prevent tampering with, theft of, or unauthorised access to dangerous goods. There are substantial penalties for breach, with natural persons facing a maximum penalty of 2,000 penalty units, and bodies corporate facing up to 10,000 penalty units (using the current penalty rate of $209.10, $418,200 and $2,091,000 respectively).

Expanded WorkSafe powers

The Act significantly expands the powers of WorkSafe and inspectors. Specifically:

  • WorkSafe can disclose to specified bodies (including government and law enforcement agencies) any information it holds that it believes is in the public interest, necessary for the performance of its duties, for the purposes of collaboration with the specified person or for the purpose of eliminating or reducing a serious risk to health, safety or property;

  • Inspectors will have enhanced powers of entry, extending not only to workplaces but also to other places where dangerous goods are present or handled. Their powers are increased, and new powers include the ability to make inquiries regarding incidents involving dangerous goods, the ability to intervene directly where there is a serious risk to health or property arising from the presence of dangerous goods, including taking any action the inspector considers necessary to address the risk; and

  • WorkSafe will also be empowered to issue costs notices to recover the reasonable costs of inspector interventions from persons who caused the circumstances giving rise to the risk, or from occupiers of the relevant place. A new regime for the redirection of compliance obligations to officers of entities that have been wound up or have refused to comply with directions is also introduced.

Asbestos management

Lastly, the Act introduces an updated asbestos management framework under new Part 8.1. Persons who manage or control a specified place, structure, or plant that contains asbestos fixed or installed on or after 1 January 2004 will be required to notify WorkSafe once they become aware that asbestos exists, and to prepare either an asbestos removal plan or an asbestos management plan depending on the circumstances. These plans must be submitted to WorkSafe for approval, and contravention of an approved plan carries penalties of up to 500 penalty units (currently $104,550) for a natural person and 2,500 penalty units (currently $522,750) for a body corporate.

  • review current dangerous goods handling practices and procedures to assess compliance with the new general duty obligations; and

  • consider existing governance frameworks in light of the new officer due diligence duty; and

  • familiarise themselves with the new asbestos notification and management requirements if relevant to their operations.

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Clayton Utz communications are intended to provide commentary and general information. They should not be relied upon as legal advice. Formal legal advice should be sought in particular transactions or on matters of interest arising from this communication. Persons listed may not be admitted in all States and Territories.