Consequences of WHS Failure
Maximum monetary penalties under the WHS laws
The model WHS Act prescribes a maximum monetary amount known as a penalty for breaches of offences under the Act.
The maximum monetary penalty amounts in the model WHS Act are subject to annual indexation to reflect the movement in the Australian Consumer Price Index (CPI). This page sets out the updated maximum penalty amounts for the year commencing 1 July 2026, as calculated under Schedule 4 to the model WHS Act.
Industrial manslaughter
The model WHS Act includes a jurisdictional note to enable jurisdictions to insert an industrial manslaughter offence. The model maximum monetary penalty is $21,274,000 for bodies corporate and 20 years’ imprisonment for an individual.
Maximum monetary penalties – categories 1-3
Category 1 offence – Gross negligence or reckless conduct
A duty holder commits a category 1 offence if they, without reasonable excuse, engage in conduct that:
exposes an individual to a risk of death or serious injury or illness, and
engages in the conduct with gross negligence or are reckless as to the risk to an individual of death or serious injury or illness.
Category 2 offence – Failure to comply with health and safety duty
A duty holder commits a category 2 offence if they:
fail to comply with a health and safety duty, and
that failure exposes a person to a risk of death or serious injury or illness.
Category 3 offence – Failure to comply with health and safety duty
A duty holder commits a category 3 offence if they fail to comply with a health and safety duty.
The maximum monetary penalties for the model category 1-3 offences as at 1 July 2026 are:
Maximum penalty— individual (as a person conducting a business or undertaking or as an officer of a person conducting a business or undertaking)
Category 1: $2,464,000; Category 2: $494,000; Category 3: $165,000
Maximum penalty— individual (otherwise)
Category 1: $1,232,000; Category 2: $247,000; Category 3: $83,000
Maximum penalty— body corporate
Category 1: $12,321,000; Category 2: $2,470,000; Category 3: $827,000