Manufacturing industry

Gain an understanding of the legal, operational and business issues relevant to the manufacturing industry.

The manufacturing industry includes:

• food 
• beverage and tobacco
• textiles, leather, clothing and footwear
• wood products
• pulp and paper 
• printing
• chemicals including - fertilisers, pesticides, pharmaceutical, medicinal, cleaning products, toiletries, cosmetics, photographic and explosive
• metals and plastics 
• machinery and equipment
• furniture

You should also check our general business information for additional regulations and obligations relevant to your business. For further advice and assistance, contact your accountant, solicitor or business adviser. You may also wish to consult with an industry association or group for more information and advice on your industry.

You must be aware of the laws that apply to the manufacturing industry.

Key legislation

• Competition and Consumer Act 2010
• Australian Consumer Law (ACL)
• Anti-dumping laws
• Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act)
• Food Standards
• Therapeutic Goods Act 1989
• National trade measurement legislation
• Hazardous Waste (Regulation of Exports and Imports) Act 1989
• Motor Vehicle Standards Act
• Motor Vehicle Australian Design Rules

Manufacturing standards

In additional to legislation, you should understand the manufacturing and processing standards to ensure your products, services and systems are safe and reliable. These standards include:

• Food standards code
• Trade measurement standards
• Product safety standards
• Electrical equipment safety standards

Packaging and labelling codes and standards

Manufacturers who package goods for distribution must understand specific packaging and labelling codes and standards that are specific to certain goods, including:

• Pesticide labelling codes
• Therapeutic goods labelling and packaging regulatory framework
• Tamper-evident packaging code of practice
• Food labelling standards
• Country of origin labelling on food
• Warning and advisory labelling on food
• Regulatory Compliance Mark for certain electrical equipment
• Electromagnetic compatibility (EMC) labelling requirements

Australian Competition & Consumer Commission (ACCC) guides

• Care labelling for clothing and textile products: supplier guide
• Moveable soccer goals: supplier guide
• Testing to product standards – principles for test organisations
• Biodegradable, degradable and recyclable claims on plastic bags
• Food and beverage industry: food descriptors guideline to the Trade Practices Act

Federal government manage the licences and permits for the manufacturing industry.

The licences and permits you may need include:

• Licence to manufacture therapeutic goods
• National Industrial Chemicals Notification and Assessment Scheme (NICNAS) registration
• Controlled Substances Licence
• Certification of Australian wood packaging for export
• Registration for the manufacturing, transport, trade or supply of pesticides and veterinary medicines
• Registration as a responsible supplier under the Electrical Equipment Safety System (EESS)
• Certification of certain electrical equipment manufactured in Australia and overseas

Further, you may require an excise licence for activities related to producing or manufacturing:

• alcohol
• fuel and petrol products (including gaseous fuels)
• tobacco
• duty-free.

The manufacturing industry has specific Goods and Services Tax (GST) measures. Know your GST obligations and register with the Australian Taxation Office (ATO) to ensure you can claim your GST credits.

Visit the ATO website to learn more about the GST requirements for food producers in the manufacturing industry.

Certain Inputs to Manufacture

The Certain Inputs to Manufacture program provides import duty concessions on certain imported raw materials and intermediate goods, such as chemical, plastics or paper products. The program also covers metal materials and goods used for food packaging.

If you employ staff, you need to comply with Australia’s national workplace laws specific to the manufacturing industry.

Visit the Fair Work Ombudsman website for awards specific to your industry

All business must comply with general occupational health and safety regulations. The manufacturing industry has specific WHS requirements to safely design and test their products and prevent risks to workers through the production process.

In the event of a work-related accident or illness, you must provide access to first aid, fair workers compensation and return to work rehabilitation.

You may also have a responsibility to provide safety information to end users. You can provide this information through an instruction manual or proper labels.

If a product you manufactured has a design or manufacturing fault, you may need to recall your product.

Businesses in the manufacturing industry often rely heavily on the environment and see the greatest benefits and impacts. Businesses that make environmentally conscious decision can reduce their impact on the environment. The main environmental issues that businesses in the manufacturing industry should understand include:

• dealing with resource shortages
• sustainable practices
• environmental reporting
• proper disposal of trade waste 
• biodegradable packaging options
• waste management and reduction

As well as trade marks, manufacturing businesses may have other relevant IP rights:

• Patents protect a method, device or system that is new and inventive
• Confidentiality / trade secrets stop employees from revealing secret knowledge during and after their employment.
• Registered designs protects the visual appearance of a manufactured product by preventing others from using the design without permission.
• Circuit layout rights automatically protects original layout designs for integrated circuits and computer chips.

Alongside compulsory insurances, the manufacturing industry has specific insurances. These insurances include:

• General liability
• Assets and revenue insurance
• Professional indemnity insurance
• Machinery breakdown insurance
• Business interruption insurance

Insurance can help you protect your business in case of machinery breakdown, consumer product liability and property damage or theft.