A High-Risk Area With Preventable Consequences
Of all the environmental and workplace health and safety compliance areas that Sydney businesses deal with, chemical storage consistently generates a disproportionately high number of EPA notices, SafeWork NSW improvement notices, council compliance actions, and insurance disputes. The reason is not that the requirements are especially complex or that businesses are intentionally non-compliant. The reason is that chemical storage arrangements are often established during a period of rapid business growth, evolve incrementally over time as volumes and product types change, and are rarely subject to a structured review against current regulatory requirements.
A storage setup that was compliant three years ago may not be compliant today if volumes have increased, new chemical types have been introduced, or the condition of containment infrastructure has deteriorated. The gap between what businesses think their chemical storage looks like from a compliance perspective and what it actually looks like is often significant – and it is usually the EPA inspector, the SafeWork officer, or the insurance assessor who identifies it first.
The good news is that the most common failures are also among the most avoidable. Here are the chemical storage mistakes that most frequently result in regulatory action against Sydney businesses, and what correct practice looks like.
Inadequate or Damaged Bunding
Bunding – the secondary containment walls or structures surrounding chemical storage areas – is a fundamental legal requirement for any business storing hazardous liquids above the threshold quantities specified in the Work Health and Safety Regulation 2017 and relevant Australian Standards. The bund must be constructed of materials resistant to the chemicals being stored, must be capable of holding the volume of the largest single container plus a ten percent safety margin, and must be free of drainage points, cracks, gaps, or penetrations that would allow liquid to escape.
Cracked or deteriorated bunding, bunds that have been modified to include drainage taps or sump pumps that discharge to the stormwater system, and bunding that is undersized for the current volumes stored are among the most common findings during EPA site inspections. Each is potentially grounds for an improvement notice, a penalty notice, or – in the case of a spill that results in environmental harm – a substantially higher consequence. Regular inspection of bunding condition and regular review of whether bund capacity remains adequate for current storage volumes is an essential part of any chemical management program.
Incompatible Chemical Co-Storage
Storing chemically incompatible substances in the same containment area is a practice that creates serious physical risk as well as regulatory non-compliance. Australian Standard AS 3780 – the Storage and Handling of Corrosive Substances standard – together with the Dangerous Goods framework, provides detailed guidance on chemical compatibility and separation requirements. The core principle is that substances which could react dangerously with each other in the event of a spill, container failure, or containment breach must be physically separated.
Common incompatible groupings that frequently appear together in inadequately managed storage areas include acids and bases stored in the same bunded area, oxidising agents stored near flammable liquids, and hypochlorite-based cleaning chemicals stored near acid-based descalers. A containment failure involving any of these combinations can produce heat, toxic gas, or fire – consequences that transform a compliance issue into a serious safety incident. The corrective action is typically straightforward: physical separation with appropriate signage and labelled storage bays. The risk of not addressing it is not.
Missing or Non-Current Safety Data Sheets
A Safety Data Sheet – or SDS – is required under the WHS Regulation for every hazardous chemical stored or used at a workplace. The SDS must be current (reviewed or reissued by the manufacturer within the last five years), must be accessible to workers who handle or work near the chemical without requiring management intervention to retrieve it, and must be retained by the business for the period during which the chemical is in use and for five years after its last use.
Relying on SDS documents that have been printed once and filed away without review, keeping the SDS folder in a locked office rather than accessible on the shop floor or in the storage area, failing to obtain SDS documents for newer chemical products introduced since the last review, and disposing of SDS records when a chemical is phased out are all findings that recur regularly in WHS inspections. None of these issues is difficult to correct. All of them are straightforward grounds for a compliance notice.
Disposal Down Drains or Stormwater
Disposing of chemical waste – including dilute or spent chemicals that a business might consider relatively harmless – via sewer connections without trade waste approval, or via stormwater drains, is classified as a pollution incident under the Protection of the Environment Operations Act 1997. The threshold for this classification is not high. Disposing of chemical rinse water from cleaning operations, spent acid from battery maintenance, photographic chemicals, or pool treatment chemicals via the stormwater system can all constitute a pollution offence under NSW law.
The consequences escalate significantly if the discharge causes or threatens material harm to the environment or reaches a waterway. Potential fines for corporate offenders can reach $1 million for a single offence, and in cases of deliberate or repeated offending, individual liability for employees who directed or carried out the disposal is a real possibility under the personal liability provisions of the Act.
The practical solution is a documented disposal pathway for every chemical waste stream your business generates. This does not require complexity – it requires identification of each waste stream, confirmation of the correct disposal route, and engagement of a licensed contractor to collect and dispose of the material with the appropriate Waste Transport Certificate documentation. Enviro Waste can assist with both the identification and the collection and disposal components.
Getting Your Chemical Compliance in Order
If your business stores, uses, or generates hazardous chemicals and you are not fully confident in your current compliance position, a structured review is a worthwhile investment – both for the peace of mind it provides and for the concrete risk reduction it delivers. The starting point is typically a walk-through assessment of current storage arrangements, waste streams, and documentation practices, followed by a prioritised list of actions.
Enviro Waste works with businesses across NSW to identify chemical storage and disposal compliance gaps, implement correct storage and disposal practices, and provide the licensed collection and documentation services that bring your waste management records into order. To discuss your requirements, contact the team on 1300 141 315.