Prohibition on insurance covering work health and safety penalties

A person can be required to pay a monetary penalty (e.g. a fine) for breaching requirements in the Work Health and Safety Act 2011 (WHS Act) or Safety in Recreational Water Activities Act 2011 (SRWA Act) or regulations made under these Acts.

The WHS Act and SRWA Act prohibit using insurance or indemnity arrangements to pay a monetary penalty using an arrangement (i.e., a contract of insurance or other arrangement).

Offence to enter into an arrangement

A person must not, without reasonable excuse, enter into a contract of insurance or other arrangement that claims to insure or cover a person for a liability for all or part of a monetary penalty under the WHS Act or SRWA Act.

A maximum penalty of 500 penalty units applies.

You should:

• check you do not have an insurance contract or indemnity arrangement covering fines under the WHS or SRWA laws.
• discuss this with your insurance or indemnity provider if you have any questions about the contract or arrangement.

Offence to provide an arrangement

A person must not, without reasonable excuse, provide a contract of insurance or an indemnity for a liability for all or part of a monetary penalty under the WHS Act or SRWA Act.

A maximum penalty of 500 penalty units applies.

Offence to take benefit from an arrangement

A person must not, without reasonable excuse, take the benefit of a contract of insurance or other arrangement, or an indemnity, that claims to insure or cover a person for a liability for all or part of a monetary penalty under the WHS Act or SRWA Act.

A maximum penalty of 500 penalty units applies.

Application to a body corporate

If a body corporate commits one of the insurance prohibition offences, each officer of the body corporate is taken to have also committed the offence if:

• the officer authorised or permitted the body corporate’s conduct constituting the offence; or
• the officer was, directly or indirectly, knowingly concerned in the body corporate’s conduct constituting the offence.

An officer of the body corporate may have a prosecution brought against them for (and be convicted of) an offence whether or not the body corporate has been proceeded against for, or convicted of, the offence.

Commencement

These changes were introduced by the Work Health and Safety and Other Legislation Amendment Act 2024.

By 28 September 2024, all persons must not:

• enter into an arrangement that purports to cover penalties
• provide an arrangement that purports to cover penalties.

From 28 September 2025 a person will be unable to take the benefit of an arrangement that covers penalties.