What Happens If You Don't Test and Tag? Penalties, Insurance & Liability in NSW

If you don't test and tag electrical equipment in your NSW workplace, you may be breaching your work health and safety duties, exposing your business to fines, and putting your insurance cover at risk if an electrical incident occurs.

Test and tag isn't a standalone law in itself — but it's the recognised way businesses demonstrate they've met their legal duty to provide safe electrical equipment.

The legal duty behind test and tag

Under the Work Health and Safety Act 2011 (NSW), a business (a "person conducting a business or undertaking", or PCBU) must ensure, so far as is reasonably practicable, that workers and others aren't exposed to risks — and that includes risks from electrical equipment.

Regular inspection and testing of portable equipment in line with AS/NZS 3760 is the standard, widely-accepted method of showing you've taken that reasonable step. SafeWork NSW is the regulator that enforces these duties.

The consequences of not doing it

The risks of skipping test and tag fall into three areas:

1. 11) Regulatory action If SafeWork NSW inspects your workplace after an incident or complaint and finds equipment wasn't maintained or tested, you can face improvement notices, prohibition notices, or penalties for failing to manage electrical risk.
2. 22) Insurance exposure This is the one most businesses underestimate. If a fault in an untested appliance causes a fire or injury, your insurer may investigate whether you maintained your equipment. If you can't show a testing record, a claim can be reduced or denied — leaving you to cover the damage yourself.
3. 33) Liability If someone is injured by faulty equipment you were responsible for, the absence of any testing regime makes it much harder to show you did what was reasonable to keep people safe.

The simple way to stay covered

Meeting the duty is straightforward: have your portable equipment inspected and tested at the intervals appropriate to your workplace under AS/NZS 3760, keep the records, and re-test on schedule.

A compliant provider fits a tag to every item and issues certificates — including same-day digital certificates — so you always have proof of compliance if a regulator or insurer ever asks.

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