A guide to Australia’s manufacturing laws

Australia’s manufacturing sector is governed by a range of regulations, standards, and initiatives that safeguard consumers, protect workers, and promote sustainability. From workplace health and safety (WHS) requirements to environmental and intellectual property laws, staying informed is crucial for maintaining your business’s reputation and avoiding legal penalties.

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This guide simplifies the legal landscape, breaking down the most important laws, standards, and obligations manufacturers need to know.

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What businesses are part of Australia’s manufacturing industry?

The manufacturing industry includes a wide range of businesses that transform raw materials into finished products. Key business types include:

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• Food and beverages
• Tobacco products
• Textiles, leather, clothing, and footwear
• Wood, pulp, and paper products
• Printed goods
• Chemical products
• Metal and plastics manufacturing
• Machinery and equipment
• Furniture and household goods

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Key legislations impacting manufacturers

Manufacturers in Australia must comply with several laws that regulate safety, competition, environmental impact, and consumer protection. Key legislations include:

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• Competition and Consumer Act 2010 (CCA)some text
  • Promotes fair trading and protects consumers from misleading practices.
  • Includes the Australian Consumer Law (ACL), which governs product safety, warranties, and refunds.

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• Privacy Act 1988some text
  • Regulates how businesses collect, use, and store personal information.

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• Anti-Dumping Lawssome text
  • Prevents imported goods from being sold at below-market prices to protect local industries.

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• Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act)some text
  • Focuses on environmental sustainability, including waste management and biodiversity preservation.

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• Food Standards Codesome text
  • Establishes guidelines for food safety, composition, and labelling for manufacturers in the food industry.

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• Therapeutic Goods Act 1989some text
  • Governs the manufacturing of medical devices, pharmaceuticals, and other therapeutic goods.

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• Hazardous Waste (Regulation of Exports and Imports) Act 1989some text
  • Controls the movement of hazardous waste in and out of Australia.

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• National Trade Measurement Legislationsome text
  • Ensures accurate measurement in packaging and labelling for fair trade practices.

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These laws ensure manufacturers operate ethically, prioritise safety, and meet environmental standards.

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Manufacturing standards and compliance

Manufacturers in Australia must adhere to strict standards to ensure products, services, and systems are safe, reliable, and compliant. These standards include:

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General manufacturing standards

• Food Standards Code: Governs food safety, handling, and composition.
• Trade Measurement Standards: Ensures accuracy in weights, measures, and packaging sizes.
• Product Safety Standards: Covers regulations for product reliability and consumer safety.
• Electrical Equipment Safety Standards: Sets requirements for safe design and testing of electrical goods.

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Packaging and labelling standards

Manufacturers must follow specific guidelines for packaging and labelling, including:

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• Pesticide Labelling Codes: Required for agricultural and pest control products.
• Therapeutic Goods Labelling and Packaging: Standards for pharmaceuticals and medical devices.
• Tamper-Evident Packaging Code of Practice: Ensures product integrity and prevents tampering.
• Food Labelling Standards: Includes warnings, advisory labels, and nutritional information.
• Country of Origin Labelling on Food: Transparency for consumers about the product’s origin.
• Warning and Advisory Labelling on Food: Highlights allergens or other safety concerns.
• Regulatory Compliance Mark (RCM): Indicates compliance for certain electrical equipment.
• Electromagnetic Compatibility (EMC) Labelling: Ensures electronic devices do not interfere with others.

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The Australian Competition and Consumer Commission (ACCC) plays a key role in overseeing compliance with these standards. The ACCC ensures manufacturers follow laws that protect consumers and promote fair competition. By adhering to these standards, businesses can avoid penalties, reduce the risk of product recalls, and enhance consumer trust in their products.

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Licences and permits for manufacturing

Manufacturing certain products in Australia requires specific licences and permits to comply with regulatory standards. These requirements ensure product safety, environmental protection, and adherence to trade laws. Below are key licences and permits manufacturers may need:

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Key licences and registrations

• Licence to Manufacture Therapeutic Goodssome text
  • Required for producing pharmaceuticals, medical devices, and other health-related products.
  • Overseen by the Therapeutic Goods Administration (TGA).

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• Australian Industrial Chemicals Introduction Scheme (AICIS) Registrationsome text
  • Mandatory for manufacturing or importing industrial chemicals.
  • Ensures compliance with chemical safety standards.

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• Controlled Substances Import/Export Licencesome text
  • Needed for handling regulated substances such as narcotics or hazardous chemicals.

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• Certification of Australian Wood Packaging for Exportsome text
  • Ensures wood packaging meets international biosecurity standards to prevent the spread of pests.

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• Registration for Pesticides and Veterinary Medicinessome text
  • Covers manufacturing, transport, and trade of agricultural and veterinary chemicals.

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• Responsible Supplier Registration under the Electrical Equipment Safety System (EESS)some text
  • Applies to manufacturers and suppliers of electrical goods to ensure they meet safety standards.

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• Certification of Electrical Equipmentsome text
  • Required for certain electrical devices produced domestically or imported into Australia

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Excise licenses for certain products

Manufacturers of specific goods must obtain excise licences to meet taxation and regulatory requirements. These products include:

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• Alcohol: Such as beer, spirits, and wine.
• Fuel and petrol products: Includes gaseous fuels and alternative fuels.
• Tobacco: Manufacturing cigarettes, cigars, and related products.
• Duty-free products: For goods produced for duty-free sales.

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Workplace health and safety

WHS is a critical aspect of the manufacturing industry due to the inherent risks associated with equipment, materials, and processes. Manufacturers must adhere to Australia’s WHS laws to ensure the safety of employees and the public.

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Key WHS duties

Under the model WHS Act, manufacturers have specific responsibilities:

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• Person Conducting a Business or Undertaking (PCBU)some text
  • Ensure the health and safety of workers and others at the workplace.
  • Provide safe systems of work, equipment, and facilities.
  • Eliminate or minimize workplace risks as far as reasonably practicable.

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• Consultation requirementssome text
  • Engage with workers on safety matters and collaborate with other duty holders (e.g., contractors).

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Common hazards in manufacturing

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Manufacturers must identify and manage risks associated with:

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• Manual handling: Lifting, pushing, or pulling heavy loads.
• Machinery and equipment: Risks from moving parts, sharp edges, or malfunctioning machines.
• Hazardous chemicals: Exposure to toxic, flammable, or corrosive substances.
• Noise: Prolonged exposure to high noise levels leading to hearing loss.
• Slips, trips, and falls: Wet floors, poor lighting, or obstructed pathways.

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Effectively managing these hazards can be challenging, but using a safety management software is a great way to streamline processes, track compliance, and ensure risks are minimised.

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Risk management process

Employers are also required to implement a structured approach to managing workplace risks:

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1. Identify hazards: Determine potential safety issues in the workplace.
2. Assess risks: Understand the likelihood and severity of harm.
3. Control risks: Apply the most effective safety controls (e.g., engineering solutions, training).
4. Review measures: Regularly assess whether controls remain effective.

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Using a comprehensive risk hazard management software such as myosh can streamline this process. It allows businesses to efficiently identify, track, and control risks while ensuring compliance with WHS regulations.

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Taxation for manufacturing businesses

Manufacturing businesses in Australia must meet specific taxation requirements to remain compliant and take advantage of available benefits.

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Goods and Services Tax (GST)

• GST obligations: Manufacturers must register for GST if their annual turnover exceeds $75,000.
• Claiming GST credits: Businesses can claim back the GST paid on eligible purchases used for manufacturing.

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Excise duty on excisable goods

Excise duty is a tax applied to certain goods produced or manufactured in Australia, referred to as excisable goods. These include:

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• Alcohol: Beer, spirits, and wine.
• Fuel and petroleum products: Including gaseous fuels.
• Tobacco: Cigarettes, cigars, and other tobacco products.

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Certain inputs to manufacture program

The Certain Inputs to Manufacture (CIM) Program helps manufacturers reduce costs by allowing duty-free import of eligible goods. This program applies to:

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• Raw materials and components not produced in Australia.
• Items intended for use in local manufacturing processes.

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State and federal tax compliance

Manufacturers must comply with both state and federal tax regulations. It’s essential to work with the Australian Taxation Office (ATO) to ensure proper registration, reporting, and payment of taxes.

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Leveraging software solutions to track tax obligations and manage documentation can help manufacturers stay compliant and take advantage of tax benefits.

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Environmental obligations and sustainability

Manufacturing businesses significantly impact the environment, making it vital to adopt environmentally conscious practices.

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The key environmental issues manufacturers should focus on include:

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• Dealing with resource shortages: Efficient use of raw materials to avoid depletion.
• Sustainable practices: Incorporating renewable energy and reducing carbon footprints.
• Environmental reporting: Maintaining transparency by tracking and sharing sustainability efforts.
• Proper disposal of trade waste: Ensuring waste is handled in compliance with regulations to minimize environmental harm.
• Biodegradable packaging options: Using eco-friendly materials to reduce packaging waste.
• Waste management and reduction: Implementing recycling programs and minimizing production waste.

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Intellectual property in manufacturing

Protecting intellectual property (IP) is essential for manufacturers to safeguard their innovations, designs, and brand identity. IP rights ensure your business retains ownership of its creative and industrial assets, preventing unauthorised use or duplication.

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Key types of intellectual property

• Trademarkssome text
  • Protects logos, brand names, and slogans.
  • Ensures your branding is uniquely yours.

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• Patentssome text
  • Covers new inventions, processes, or machinery.
  • Grants exclusive rights to manufacture and sell the patented item.

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• Design rightssome text
  • Covers new inventions, processes, or machinery.
  • Grants exclusive rights to manufacture and sell the patented item.

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• Copyrightsome text
  • Automatically protects original works like manuals, designs, and software.

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• Trade secretssome text
  • Safeguards confidential information, such as formulas or manufacturing techniques.

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How to protect your IP

• Register your IP: Apply for trademarks, patents, and design rights through IP Australia.
• Monitor for infringement: Regularly check for unauthorized use of your IP.
• Use contracts and NDAs: Ensure employees, suppliers, and partners sign agreements to protect confidential information.

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Insurance for manufacturing businesses

Insurance is a critical safeguard for manufacturers, protecting against risks like equipment damage, product liability, and business interruptions. Having the right insurance policies in place can shield your business from financial losses and operational disruptions.

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Key types of insurance

• General liabilitysome text
  • Covers third-party claims for property damage or bodily injury caused by your business operations.

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• Product liabilitysome text
  • Protects against claims arising from defective or unsafe products.

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• Public liabilitysome text
  • Covers legal costs and compensation if your business causes injury to the public or damages their property.

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• Machinery breakdown insurancesome text
  • Covers the repair or replacement of essential equipment in the event of a mechanical failure.

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• Business interruption insurancesome text
  • Compensates for income lost due to events like fire, flood, or other disasters that disrupt operations.

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• Assets and revenue insurancesome text
  • Protects physical assets, such as buildings, stock, and equipment, and ensures continued revenue flow.

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• Professional indemnity insurancesome text
  • Protects against claims of negligence, errors, or omissions in professional services or advice.

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Empowering manufacturers to stay compliant

Navigating Australia’s manufacturing laws can be challenging, but ensuring compliance is key to protecting your business, employees, and reputation. From managing workplace safety to meeting licensing and environmental requirements, staying on top of regulations is essential.

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With myosh, you don’t have to face these challenges alone. The myosh safety management software makes it easy to manage risks, track incidents, and stay compliant—all in one place.

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Start your free trial today and see how myosh can help your manufacturing business thrive with confidence.

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