Code of Practice — Managing Risks of Hazardous Chemicals

The full title is the Code of Practice: Managing Risks of Hazardous Chemicals in the Workplace, published by Safe Work Australia. The code becomes legally binding from 1 July 2026 under Section 26A of the WHS Act. It applies to all workplaces where hazardous chemicals are used, handled, stored, or generated as part of work processes. The code covers chemical identification and the maintenance of a hazardous chemical register, Safety Data Sheet management including the requirement to maintain current SDS for every hazardous chemical, risk assessment for chemical exposure through inhalation, skin contact, ingestion, and injection routes, the hierarchy of controls applied to chemical risks, health monitoring requirements for workers exposed to hazardous chemicals, atmospheric monitoring requirements, emergency planning for chemical incidents including spills, leaks, and fires, and storage requirements aligned to the Australian Dangerous Goods Code.

The code applies to every PCBU whose workers use, handle, store, or are exposed to hazardous chemicals. Manufacturing businesses using process chemicals, solvents, adhesives, and cleaning agents must comply. Construction companies using concrete additives, curing compounds, adhesives, sealants, and fuels are covered. Laboratories using analytical reagents, biological fixatives, and reference standards must follow the code. Healthcare facilities using disinfectants, anaesthetic gases, and cytotoxic drugs are captured. Agricultural businesses using pesticides, herbicides, and fertilisers must comply. Cleaning and maintenance businesses using industrial cleaning chemicals are covered. The code also applies to importers and suppliers of hazardous chemicals who must ensure correct classification, labelling, and SDS provision. Any business that generates hazardous substances as a byproduct of work processes, such as welding fume, diesel exhaust, or dust, is also captured.

The code requires PCBUs to maintain a hazardous chemical register listing every hazardous chemical used or stored at the workplace, with current Safety Data Sheets readily accessible to workers. Risk assessments must be conducted for each hazardous chemical task considering the exposure route, duration, frequency, and the toxicological properties of the substance. Controls must follow the hierarchy — elimination, substitution, isolation, engineering controls, administrative controls, and personal protective equipment. Health monitoring must be provided for workers exposed to chemicals listed in Schedule 14 of the WHS Regulation or where exposure monitoring indicates that significant absorption is occurring. Atmospheric monitoring must be conducted where there is uncertainty about whether exposure exceeds the workplace exposure limit. The code also requires emergency plans for chemical spills, leaks, and fires, including the provision of spill kits, emergency showers and eyewash stations, and trained emergency response personnel. Chemical storage must comply with the Australian Dangerous Goods Code requirements for segregation, ventilation, bunding, and signage.

First, audit the hazardous chemical register for completeness and currency, ensuring every chemical used or stored at the workplace is listed and every SDS is dated within five years and reflects the current GHS classification. Second, conduct or update risk assessments for every chemical task, incorporating the incoming Workplace Exposure Limits where they differ from current standards, and update control measures where the tighter limits require upgraded controls. Third, review atmospheric monitoring programs against the incoming WELs and commission additional monitoring where current data is insufficient to demonstrate compliance with the new limits. Fourth, verify that health monitoring programs cover all workers exposed to chemicals listed in Schedule 14 and that monitoring results are reviewed by a registered medical practitioner with reports provided to the worker and the PCBU. Fifth, audit chemical storage areas against the Dangerous Goods Code requirements for segregation, bunding, ventilation, and signage, and rectify any non-conformances before the code becomes binding.

Chemical exposure incidents can cause acute poisoning, chronic disease, cancer, and death. The prosecution of Orica Limited, resulting in a $1,200,000 penalty for a chemical release that exposed workers to hexavalent chromium, demonstrates the scale of penalties for chemical management failures. After 1 July 2026, failure to follow the code constitutes a standalone offence. Category 2 penalties of up to $1,731,500 for a body corporate apply where workers are exposed to harmful chemical concentrations through inadequate management. The concurrent WEL transition creates additional prosecution exposure — a PCBU that fails to update monitoring programs and controls for the new limits will face enforcement action under both the code and the specific WEL provisions. Environmental regulators may also pursue separate penalties for chemical releases that affect the environment, creating compounding liability. All WHS penalties are uninsurable in NSW since 10 June 2020.