Key Changes to NSW Work Health and Safety Laws: What NSW Dive Businesses Need to Know by 1 July 2026

DIAA News Update – June 2026

The NSW Work Health and Safety (WHS) framework has undergone significant strengthening between 2024 and 2026, with a greater focus on executive accountability, psychological safety, industrial manslaughter and proactive risk management.

For dive centres, charter operators, training organisations, dive resorts, retailers and other businesses in the recreational diving industry, the message is clear: safety systems must be active, documented, regularly reviewed and understood by the people responsible for running the business.

Important: This article is a general industry summary only. It is not legal advice. DIAA members should review their own WHS systems and seek professional advice where required.

Major Changes

1. Industrial Manslaughter is now a Criminal Offence

NSW introduced industrial manslaughter laws in September 2024.

A business, known under WHS law as a Person Conducting a Business or Undertaking (PCBU), or an officer of a PCBU, can now be prosecuted where gross negligence leads to the death of a worker or another person.

Maximum penalties include:

  • Corporations: up to $20 million
  • Individuals: up to 25 years imprisonment

These laws significantly increase the consequences for serious safety failures where a death occurs.

2. Increased Personal Liability for Directors and Officers

Company directors, executives and senior managers must exercise due diligence to ensure workplace safety.

Ignorance of safety risks is no longer considered a defence. Greater scrutiny is now being applied to governance systems, reporting, supervision and safety culture.

Officers should be able to demonstrate that they understand the major WHS risks in the business and have taken active steps to ensure those risks are properly managed.

3. Stronger Psychosocial Hazard Requirements

Businesses must now actively identify and control psychosocial risks, not just physical risks.

Psychosocial hazards may include:

  • workplace bullying;
  • harassment;
  • fatigue;
  • excessive workloads;
  • occupational violence;
  • aggressive customer behaviour;
  • unclear responsibilities;
  • poor supervision; and
  • psychological injury risks.

Employers must apply proper risk management processes when managing psychosocial hazards, including the hierarchy of controls where elimination of the risk is not reasonably practicable.

4. Updated WHS Regulation 2025

The Work Health and Safety Regulation 2025 replaced the previous 2017 Regulation.

Additional requirements were introduced regarding:

  • psychosocial risk management;
  • silica exposure controls;
  • information sharing obligations;
  • risk assessment documentation; and
  • compliance requirements.

Businesses should ensure that older WHS references, policies and procedures are reviewed and updated so they reflect the current regulation.

5. Greater Enforcement Activity

SafeWork NSW has significantly increased investigations, prosecutions and compliance activities.

The NSW Industrial Court has also been re-established, increasing the ability to prosecute serious WHS offences.

What This Means for NSW Businesses

Every business must now:

  • actively identify workplace risks;
  • document safety systems and procedures;
  • manage both physical and psychological hazards;
  • ensure directors and officers understand WHS obligations;
  • maintain training, consultation and incident reporting systems; and
  • regularly review WHS controls and compliance.

Failure to do so can result in substantial fines, prosecution and imprisonment for responsible individuals.

Easy-to-Read Summary of the NSW Work Health and Safety Act

The purpose of the NSW WHS Act is simple:

Every worker has the right to return home safely from work.

The Act places legal duties on everyone involved in a workplace.

The Main Duties

Businesses (PCBUs)

A Person Conducting a Business or Undertaking (PCBU) must:

  • provide a safe workplace;
  • provide safe systems of work;
  • provide training, supervision and instruction;
  • ensure plant, equipment and structures are safe;
  • consult workers about safety matters; and
  • manage physical and psychological risks.

Officers, Directors and Senior Managers

Officers must exercise due diligence by:

  • understanding WHS risks;
  • ensuring resources are available;
  • monitoring compliance; and
  • verifying safety systems are working.

Workers

Workers must:

  • take reasonable care of themselves and others;
  • follow safety procedures;
  • use safety equipment correctly; and
  • report hazards and incidents.

Key Areas Covered by the Act

  • hazard identification and risk management;
  • incident notification and investigation;
  • worker consultation;
  • Health and Safety Representatives (HSRs);
  • safe plant and equipment;
  • construction and high-risk work;
  • psychological health and wellbeing;
  • emergency preparedness and response; and
  • industrial manslaughter provisions.

Penalties in 2026

Serious breaches can result in:

  • improvement notices;
  • prohibition notices;
  • significant fines;
  • criminal prosecution;
  • industrial manslaughter charges; and
  • imprisonment for officers and individuals.

The Practical Rule for Businesses

To comply with the NSW WHS Act in 2026, a business should be able to demonstrate that it:

  1. identifies hazards;
  2. assesses risks;
  3. implements controls;
  4. trains workers;
  5. consults workers; and
  6. reviews and improves safety systems.

If these six steps are consistently followed and documented, most businesses will be well positioned to meet their obligations under the current NSW WHS framework.

Suggested Action Checklist for NSW Dive Businesses

DIAA recommends that NSW dive businesses use this update as a prompt to review their workplace safety systems.

A practical review should include the following:

  • Review written WHS policies: Make sure policies are current, practical and understood by staff.
  • Update risk assessments: Include both physical risks and psychosocial hazards.
  • Check officer due diligence: Directors and senior managers should understand the major risks in the business and be able to show how those risks are being managed.
  • Review staff training records: Confirm that staff have received appropriate induction, supervision and ongoing safety training.
  • Check incident reporting systems: Ensure hazards, near misses, incidents and injuries are recorded, investigated and acted upon.
  • Review emergency procedures: Confirm emergency plans are current for the shop, training sites, boats, vehicles and off-site activities.
  • Consult workers: Staff should be given a genuine opportunity to raise safety concerns and contribute to safer systems of work.
  • Document controls and reviews: Businesses should be able to show that safety controls are in place and reviewed regularly.

Why This Matters to the Dive Industry

The recreational diving industry operates in an environment where safety, professionalism and public confidence are essential.

Dive businesses manage a wide range of risks, including training activities, boat operations, shore diving, compressed gas, equipment servicing, customer supervision, travel, retail operations and staff wellbeing.

Strong WHS systems protect workers, customers, business owners and the reputation of the industry as a whole. They also help demonstrate that the Australian dive industry is professional, responsible and committed to best practice.

DIAA encourages members to treat WHS compliance as an ongoing management responsibility, not a once-a-year paperwork exercise.

Important Note

This article is intended as a general industry update only. It does not replace legal advice or professional WHS advice. Each business should consider its own operations, risks and responsibilities and seek appropriate advice where required.