Penalty more than halved due to company’s financial position

In a recent NSW prosecution, a penalty of $320,000 was reduced to $120,000 after evidence of the incapacity of the small company to pay a substantial fine was accepted (SafeWork NSW v Painting and Blasting Industries Pty Ltd [2026]).

Painting and Blasting Industries entered a guilty plea to the charge relating to an incident where a worker suffered serious injuries after slipping through rollers on a steel blasting machine’s conveyor. The outfeed conveyor of the blasting machine, which was where the injured worker was standing, was not guarded and there was nothing in place, including any signage or warning, to stop workers from touching the moving parts of the outfeed section of the machine. The Court heard that there were also inadequate systems to ensure that the blasting machine was not operated and/or was isolated when workers were working on the outfeed conveyor.

On sentencing, the company, which was operated through a sole director, his two brothers and nephews, relied on a report from the company’s chartered accountant, which expressed the opinion that a fine in excess of $100,000 would likely increase the risk of the company going into liquidation.

The Court assessed the objective seriousness of the offence and imposed the initial fine at $320,000. However, in accepting the evidence of the accountant, the Court reduced the fine to $120,000 as well as an order to pay the Prosecutor’s costs.

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