• Introduction of officer due diligence obligations

  The most significant reform in the Bill is a new section that requires an officer of a body corporate to exercise due diligence to ensure that the body corporate complies with its relevant duties and obligations under the OHS Act. 

  While this represents a change for Victoria, similar officer due diligence obligations already apply under the Model WHS Laws in force in all other Australian states and territories. 

  Due diligence is defined in the Bill as taking reasonable steps to:

  1. acquire and keep up to date knowledge of workplace health and safety;
      
  2. gain an understanding of the nature of the operations of the business or undertaking of the body corporate, including the handling of dangerous goods by the body corporate and generally of the hazards and risks associated with those operations; and
      
  3. ensure that the body corporate has available for use, and uses, appropriate resources and processes to eliminate or minimise risks to health and safety in workplaces or at any place where dangerous goods are handled; and
      
  4. ensure the body corporate has appropriate processes for receiving and considering information, and responding in a timely way to that information, relating to incidents, hazards and risks in workplaces or at any place where dangerous goods are handled; and
      
  5. to ensure that the body corporate has, and implements, processes for complying with any duty or obligation of the body corporate under the OHS Act or regulations.
      
  6. Verify all of the above.

  Failure to comply with officer due diligence obligations is an offence, irrespective of whether the body corporate is prosecuted for or found guilty of failing to comply with the relevant duty or obligation. This provision would replace the existing officer liability provision in section 144 of the OHS Act, and, in effect, hold officers to a higher standard.

• Expanded enforcement options through civil penalties

  An important change proposed by the Bill is the introduction of civil penalty provisions to the OHS Act.

  If enacted, these provisions would provide WorkSafe with an alternative enforcement pathway in circumstances where criminal prosecution is not pursued.

  The Bill proposes a range of court‑ordered civil enforcement outcomes, including:

  • compliance and restraining orders;
  • adverse publicity orders;
  • monetary benefit orders;
  • orders requiring health and safety improvement projects; and
  • release on the giving of a health and safety undertaking.
• Proposed new aggravated OHS offence

  The Bill also proposes the introduction of a new aggravated offence for serious breaches of employer duties under section 21 of the OHS Act.

  An aggravated offence would apply where:

  • an employer contravenes section 21 of the OHS Act;
  • the contravention results in, or is likely to result in, endangerment to employee health and safety; and
  • the employer knew, or reasonably should have known, that the contravention would result in, or would be likely to result in, endangerment of an employee’s health or safety.

  Although aimed at the most serious cases, the offence reflects an increasing focus on employer knowledge, risk awareness and proactive management of safety risks.

• New powers targeting phoenixing and non compliance

  The Bill proposes mechanisms allowing regulatory obligations to be redirected torelated or associated entities in certain circumstances, aimed at addressing phoenixing behaviour or deliberate non‑compliance with safety obligations.

  This is likely to be particularly relevant for organisations operating through:

  • corporate groups;
  • layered contracting arrangements; or
  • structures involving separate asset‑holding and operating entities.
• Folding dangerous goods regulation into the OHS Act

  The Bill proposes to repeal the standalone Dangerous Goods Act 1985 (Vic) and bring the regulation of dangerous goods within the OHS Act.

  If enacted, this would mean that:

  • dangerous goods duties would sit alongside existing OHS duties;
  • WorkSafe Victoria would operate as the single regulator under a unified enforcement model; and
  • obligations would apply not only to workplaces, but also to other ‘places’ where dangerous goods are handled.
• A new broad general duty for handling dangerous goods

  At the centre of the Bill is a proposed new general duty applying to persons involved in the handling of dangerous goods.

  The duty is framed broadly and would require duty holders to ensure, so far as reasonably practicable, that dangerous goods are handled safely and without risks to health, safety or property.

  This reflects a shift away from technical compliance towards active risk management, which is a familiar concept for employers under the existing OHS framework.

  Importantly, the proposed duty is not limited to employers. It may apply across supply chains and operational roles.

• Expanded inspection and entry powers

  In relation to dangerous goods, the Bill proposes expanded powers for WorkSafe, including:

  • strengthened authority to enter places and issue directions where dangerous goods present a serious risk to the community;
  • powers to issue oral or written directions to current or former controllers of dangerous goods; andexpanded powers to enter residential premises, with consent or where there is a reasonable belief that dangerous goods are present and a contravention is occurring or imminent.

Key takeaways 

The Bill presents broad and significant implications for all employers under the OHS framework. While the Bill is not yet law, it signals a clear policy direction towards integrated regulation, expanded enforcement powers, increased accountability and stronger officer oversight. 

While the shift in how dangerous goods are regulated in Victoria is important, the Bill signals a clear policy direction towards integrated regulation, expanded enforcement powers, increased accountability and stronger officer oversight across all sectors. Officers (Executives and Boards) will need to become familiar with and exercise their personal due diligence obligations.