Penalty Structure Under the WHS Act
The Work Health and Safety Act 2011 establishes three categories of offence, each with escalating maximum penalties. Category 1 (section 31) is the most serious and applies when a person, without reasonable excuse, engages in conduct that exposes an individual to a risk of death or serious injury or illness and is reckless as to that risk. Category 2 (section 32) applies when a person fails to comply with a health and safety duty and the failure exposes an individual to a risk of death or serious injury or illness. Category 3 (section 33) applies to a simple failure to comply with a health and safety duty.
Penalty amounts are indexed to the Consumer Price Index and increase periodically. The amounts cited in this guide are the 2025-26 CPI-indexed maximum penalties. Actual penalties imposed by courts are typically lower than the maximum but have been trending upward as courts respond to community expectations and prosecutor submissions. The maximum penalty represents the most serious example of the offence — a court considers factors including the seriousness of the breach, the degree of harm caused, the offender's safety record, cooperation with the investigation, and any remedial steps taken.
NSW Penalties
New South Wales applies the model WHS Act penalties with CPI indexation. For 2025-26, the maximum penalties are: Category 1 — $3,460,000 for a body corporate, $690,000 and/or 5 years imprisonment for an officer, $345,000 and/or 5 years imprisonment for any other person. Category 2 — $1,730,000 for a body corporate, $345,000 for an officer, $173,000 for any other person. Category 3 — $865,000 for a body corporate, $173,000 for an officer, $86,500 for any other person.
NSW has an additional critical provision: since 10 June 2020, WHS fines have been uninsurable under section 272A of the WHS Act 2011 (NSW). This means no insurance policy can indemnify a person against liability for a WHS monetary penalty. Any insurance policy purporting to cover WHS fines is void to that extent. This provision fundamentally changes the risk calculus for businesses — WHS penalties must be paid from company or personal funds, making compliance failures a direct threat to financial viability. NSW also operates an enforceable undertaking program that allows a duty holder to propose alternative measures in lieu of prosecution for Category 2 and 3 offences.
Queensland Penalties
Queensland applies the model WHS Act with its own penalty indexation. For 2025-26, the maximum penalties are: Category 1 — $3,564,000 for a body corporate, $712,000 and/or 5 years imprisonment for an officer, $356,000 and/or 5 years imprisonment for any other person. Category 2 — $1,782,000 for a body corporate, $356,000 for an officer, $178,000 for any other person. Category 3 — $891,000 for a body corporate, $178,000 for an officer, $89,000 for any other person.
Queensland introduced industrial manslaughter as an offence in 2017 under the Work Health and Safety Act 2011 (Qld). An employer or senior officer who negligently causes the death of a worker faces a maximum penalty of 20 years imprisonment for an individual or $18,214,000 for a body corporate. This is separate from and additional to the Category 1 offence provisions. Queensland has been the most active jurisdiction in pursuing industrial manslaughter charges, with several cases prosecuted since the provision commenced. The existence of this offence has significantly increased boardroom attention to WHS governance in Queensland.