Changes to the operation of the Work Health and Safety Act 2011 (NSW) (WHS Act), including reforms that make Codes of Practice legally enforceable, will take effect from 1 July 2026.
These changes follow the passage of the Industrial Relations and Other Legislation Amendment (Workplace Protections) Act 2025 (opens a new window), which was passed by the NSW Government on 27 June 2025.
A key change is the introduction of section 26A into the WHS Act, which elevates approved Codes of Practice (CoPs) to legally enforceable standards.
Codes of Practice become enforceable
From 1 July 2026, Codes of Practice will no longer operate as guidance alone.
Under section 26A, they become enforceable benchmarks for compliance.
Persons Conducting a Business or Undertaking (PCBUs) must either follow the relevant CoP or demonstrate that they have implemented alternative risk control measures that achieve an equivalent or higher standard of work health and safety.
Importantly, SafeWork NSW, as the Regulator, is not required to prove that an incident or injury has occurred.
A failure to meet the standards outlined in an applicable CoP may be sufficient to establish a breach of the WHS Act.
There are currently 48 CoPs in NSW, covering a wide range of hazards and activities from managing psychosocial hazards at work to managing risks of falls at workplaces, available via the SafeWork NSW website (opens a new window).
Consultation expectations across CoPs
A consistent feature across most Codes of Practice is the requirement to genuinely consult with workers and any other persons who may be affected by the relevant standards, including contractors.
This obligation goes beyond a procedural approach to consultation.
In practice, relying solely on a Safety Committee may not be sufficient, particularly in relation to Codes of Practice addressing areas such as sexual and gender-based harassment, psychosocial hazards, and fatigue management, where more direct and meaningful engagement is expected.
What PCBUs should be doing now
PCBUs are strongly encouraged to review the current Codes of Practice and determine which are applicable to their operations.
This should be followed by a structured process to ensure compliance.
This typically involves:
Confirming CoP applicability
Undertaking a gap analysis against CoP requirements to identify areas of non-compliance
Prioritising remediation actions
Implementing appropriate controls
Verifying that controls meet the required standard
Validating and recording compliance so that it can be demonstrated if required
The emphasis is not just on having controls in place, but on being able to clearly evidence that those controls meet or exceed the standard set by the relevant CoP.
Implications for Officers and due diligence
The shift to legally enforceable Codes of Practice under section 26A directly impacts how Officers must meet their due diligence obligations under section 27 of the WHS Act.
Where a PCBU has a duty or obligation under the Act, including the new requirements under section 26A, an Officer must exercise due diligence to ensure that the organisation complies.
Due diligence includes taking reasonable steps to acquire and maintain up-to-date knowledge of work health and safety matters, and to ensure that the PCBU has appropriate processes in place for complying with its WHS duties, including section 26A, and that those processes are implemented in practice.
Enforcement and penalties
A failure to comply with duties under the WHS Act can expose both PCBUs and Officers to significant regulatory penalties.
Under the Act, a person, including an Officer of a PCBU, commits a Category 3 offence where they have a health and safety duty and fail to comply with that duty, including where an Officer fails to exercise due diligence under section 27.
In such cases, the maximum penalty for an individual is a fine of up to $133,540.
In addition to financial penalties, enforcement action may result in broader business impacts, including operational disruption, increased regulatory scrutiny, and reputational damage.
There is no indication that the Regulator will apply a moratorium or transitional approach to the enforcement of section 26A.
PCBUs should therefore be prepared for these requirements to apply from 1 July 2026.
How Lockton can support
Lockton’s People, Safety & Wellbeing team works with organisations to strengthen assurance over people and safety risks and support practical compliance with evolving WHS obligations. We can help you assess which Codes of Practice apply to your operations, identify gaps against section 26A requirements, and develop structured, evidence-based approaches to demonstrate compliance.
If you would like to understand what these changes mean for your organisation, or support your readiness ahead of 1 July 2026, please get in touch.
The contents of this publication are provided for general information only. Lockton arranges the insurance and is not the insurer. While the content contributors have taken reasonable care in compiling the information presented, we do not warrant that the information is correct. The contents of this publication are not intended as a legal commentary or advice and should not be relied on in that way. It is not intended to be interpreted as advice on which you should rely and may not necessarily be suitable for you. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication.