Alex is Sprintlaw’s co-founder and principal lawyer. Alex previously worked at a top-tier firm as a lawyer specialising in technology and media contracts, and founded a digital agency which he sold in 2015.
- What Is the “ANZFA” (Now FSANZ) Food Standards Code?
- Who Must Comply, and When?
Step-By-Step: Setting Up Your Food Business Legally in Australia
- 1) Choose a Business Structure and Register
- 2) Secure Your Premises (Or Online Setup)
- 3) Notify/Register With Council and Obtain Food Licences
- 4) Build Your Food Safety System
- 5) Lock In Your Supply Chain
- 6) Set Customer-Facing Terms and Store Policies
- 7) Get Your Privacy and Marketing Compliance Right
- 8) Hire and Train Your Team Properly
- Essential Contracts and Policies to Have in Place
- Practical Tips to Make Compliance Easier
- Common Mistakes (And How to Avoid Them)
- Key Takeaways
Whether you’re launching a café, bottling a new beverage, running a cloud kitchen or scaling a food brand into retail, you’ll quickly run into one constant: the Food Standards Code.
You’ll sometimes see it referred to as the “ANZFA Food Standards Code” (after the old regulator name). Today, the rules sit under the Food Standards Australia New Zealand (FSANZ) Food Standards Code-but the practical obligations for food business operators in Australia remain the same: make safe food, label it correctly, and follow clear hygiene, training and premises requirements.
In this guide, we break down what the Code covers, who it applies to, the key standards you’ll need to comply with, and the legal documents that help you operate with confidence. If you’re setting up or growing a food business in Australia, this is your roadmap.
What Is the “ANZFA” (Now FSANZ) Food Standards Code?
The Food Standards Code sets legally enforceable requirements for food sold in Australia and New Zealand. It’s developed by FSANZ and enforced in Australia by state and territory food authorities and local councils.
It covers the whole food chain-from sourcing ingredients and handling food, to premises and equipment standards, labelling and composition rules, additives, contaminants and microbiological limits.
While people still say “ANZFA Code”, the regulator is now FSANZ. What matters for you is understanding which parts of the Code apply to your business model (e.g. retail, manufacture, import, catering) and building those requirements into your everyday operations.
Who Must Comply, and When?
If you sell food in Australia, you’re most likely a “food business” under the law. That includes:
- Cafés, restaurants, bars and takeaways (including food trucks and dark kitchens).
- Manufacturers, processors, packers and wholesale suppliers.
- Retailers (from bakeries to supermarkets, and online-only sellers).
- Caterers, market stalls and community event food vendors.
- Importers bringing food into Australia for sale.
- Home-based food businesses (e.g. cottage baking) where permitted by local rules.
Before you trade, you’ll generally need to notify or register with your local council (requirements vary by state and risk classification), ensure your premises and equipment meet the Code, and put the right food safety practices and training in place.
Key Requirements Under the Food Standards Code
The Code is detailed, but most food businesses can focus on a handful of core standards from day one.
Food Safety Programs, Training and Supervision
Food businesses must have people with the right skills and knowledge for their tasks. Many businesses must also appoint a Food Safety Supervisor (and keep proof of training), and some are required to maintain a documented food safety program depending on the activity and state/territory law.
Standard 3.2.2 sets general food safety practices (e.g. hygiene, illness reporting, contamination prevention, cleaning/sanitation, recall systems). Standard 3.2.3 deals with food premises, layout and equipment. A recent standard (3.2.2A) strengthens requirements for businesses that handle unpackaged, potentially hazardous, ready-to-eat food-expect mandatory training, documented processes and extra controls for temperature, time and cross-contamination.
Practically, this means you’ll need a training plan, up-to-date cleaning schedules, calibrated thermometers, and clear procedures for receiving, storing, preparing, cooling and displaying food.
Temperature Control and Preventing Contamination
Businesses must keep potentially hazardous foods at safe temperatures (typically 5°C or colder, or 60°C or hotter) and minimise time in the danger zone during preparation, cooling and transport. You’ll also need strict controls for allergen cross-contact, physical and chemical contamination, and personal hygiene (handwashing, illness exclusions, protective clothing).
Strong temperature logs, batch coding and equipment maintenance (e.g. fridge temperature monitoring) are expected in higher-risk operations.
Labelling, Allergens and Composition
Pre-packed foods must carry compliant labels (name/description, ingredient list, allergens, nutrition information where required, supplier details, date marking, storage/use instructions and country of origin for most foods). Claims-such as “gluten free”, “no added sugar” or “high in protein”-must meet strict criteria.
Allergen declarations are a major risk area. The Code-and recent updates to plain English allergen labelling-require clear, prominent allergen statements (for ingredients and certain processing aids). You’ll need to manage recipes, supplier change controls and label verification so allergen info is always accurate.
Additives, Contaminants and Microbiological Limits
The Code sets which additives (colours, preservatives, sweeteners and more) you may use, in what foods, and in what amounts. It also sets maximum limits for certain contaminants (like heavy metals) and microbiological criteria for high-risk categories.
Work closely with your technologists and suppliers to ensure every ingredient and process step complies, and keep specifications and Certificates of Analysis on file for audit or recall readiness.
Traceability and Recalls
Every business should be able to identify from whom they received food and to whom they supplied it (one step back, one step forward). Keep invoices, batch codes and distribution records organised. You must be able to remove unsafe food rapidly and effectively-so build and test your recall procedure, including up-to-date contact lists and customer notification templates.
Step-By-Step: Setting Up Your Food Business Legally in Australia
A solid plan and the right legal foundations make compliance easier and growth smoother. Here’s a practical sequence to follow.
1) Choose a Business Structure and Register
Decide whether to operate as a sole trader, partnership or company. Many founders use a company for limited liability and easier scaling; it’s not mandatory, but worth considering if you have staff, investors or premises. You can handle your company set up alongside your ABN, tax registrations and business name.
2) Secure Your Premises (Or Online Setup)
For physical sites, check zoning, fit-out and council permits early. Plan your layout for food flow, handwashing, pest control, cleaning facilities and temperature control. If you’re selling online only, you’ll still need compliant storage, transport and labelling processes.
3) Notify/Register With Council and Obtain Food Licences
Council processes differ by state and risk classification. Expect plan approvals for fit-outs, inspections, and ongoing registration. If you’re mobile (food truck, markets), check each local area’s notification and inspection requirements.
4) Build Your Food Safety System
Appoint and train a Food Safety Supervisor where required. Roll out staff training, written procedures (receival, storage, prep, cleaning, allergen control, temperature checks), and monitoring records. If your category requires a documented food safety program, implement it before opening.
5) Lock In Your Supply Chain
Source reputable suppliers and set expectations in writing. A clear Supply Agreement can cover delivery terms, specifications, quality standards, non-conforming goods and liability. Keep up-to-date ingredient specs and allergen info for every item you buy.
6) Set Customer-Facing Terms and Store Policies
If you sell packaged goods or operate an online store, have clear Sale of Goods Terms and transparent returns, delivery and refunds policies that align with Australian Consumer Law. For websites and apps, publish Website Terms and Conditions that set the rules for use, liability limits and IP ownership.
7) Get Your Privacy and Marketing Compliance Right
If you collect customer names, emails or order details (which most food businesses do), you’ll need a compliant Privacy Policy and proper consent practices. Ensure your email and SMS marketing follows Australian spam and privacy laws, and that your allergen or nutrition claims are accurate and backed by the Code.
8) Hire and Train Your Team Properly
Engage staff on written terms and pay correctly under the relevant award. Use a tailored Employment Contract and keep policies on food safety, hygiene, uniform/appearance, breaks, and incident reporting. Ongoing training and supervision are part of your Code obligations-document them from day one.
What Other Laws Apply to Food Businesses?
The Food Standards Code is central, but you’ll also navigate broader business laws. Here are key areas to factor in.
Australian Consumer Law (ACL)
Food safety sits alongside fair dealing with customers. The ACL prohibits misleading or deceptive conduct and false or misleading claims-especially relevant to promotions like “natural”, “sugar-free”, “low carb” or therapeutic effects. Make sure your packaging and advertising comply with the Code and with ACL rules on false or misleading representations.
Employment and Workplace Safety
If you employ staff, comply with minimum wages, rostering and leave, and keep a safe workplace (WHS). Food safety training often intersects with WHS obligations (e.g. safe knife use, chemical handling, burns and slips). Written contracts, policies and consistent onboarding reduce risk.
Privacy and Data Security
Collecting customer data through online orders, loyalty programs or Wi‑Fi? Publish a compliant Privacy Policy, only collect what you need and keep it secure. Be transparent about how you use personal information and honour customer rights to access or correct their data.
Leases, Fit-Out and Local Laws
Commercial leases commonly include make-good clauses, permitted use limits and fit-out approvals. Coordinate your lease commitments with council approvals and food premises requirements to avoid costly redesigns.
Buying a Franchise or Existing Food Business
If you choose to buy into a franchise, plan for upfront and ongoing compliance-plus franchisor standards. Ensure the franchise agreement, operations manuals and supply mandates align with the Code, and confirm who carries recall and compliance costs. A legal review of the franchise documentation can save significant headaches later.
Essential Contracts and Policies to Have in Place
Not every business needs every document, but most food ventures benefit from the following core set.
- Supply Agreement: Sets product specs, delivery, non-conformances, recalls, pricing and liability with your ingredient and packaging suppliers. A good agreement helps you push back on quality issues quickly.
- Manufacturing Agreement (if using a co‑packer): Covers GMP/food safety expectations, batch records, change controls, allergen management, audits, and intellectual property.
- Sale of Goods Terms: Your retail or wholesale terms for orders, delivery, risk, returns and ACL compliance. For online stores, pair them with your checkout terms. You can implement these as Sale of Goods Terms.
- Website Terms and Conditions: Rules for visitors, IP protection, disclaimers and acceptable use on your site or app. Publish these alongside your Website Terms and Conditions.
- Privacy Policy: Explains what personal information you collect, how you use it, and how customers can contact you. This is essential for online orders and mailing lists-use a compliant Privacy Policy.
- Employment Contract + Policies: Sets hours, duties, confidentiality, and safety obligations for staff, and underpins your training records for food safety compliance. Start with a tailored Employment Contract.
- Non‑Disclosure Agreement (NDA): Useful when discussing recipes, technology or co‑packing with third parties. An NDA protects trade secrets and confidential information during negotiations.
- Shareholders Agreement (if you have co‑founders/investors): Aligns decision‑making, roles and equity from the start, so you can focus on growth instead of disputes.
Well‑drafted contracts support your Food Standards compliance by hard‑wiring product specs, change‑control and recall responsibilities into your supply chain and customer relationships.
Practical Tips to Make Compliance Easier
- Design for compliance: plan your workflow, handwashing, storage and waste areas before you sign off the fit‑out.
- Write it down: short, clear procedures and checklists help staff do the right thing every day-and give you records if audited.
- Control recipe changes: small ingredient swaps can trigger allergen or label changes. Use a change‑control process and re‑approve labels before production.
- Train, then retrain: refresh food safety training when menus change, seasons shift or new equipment arrives.
- Test your recall: run a mock recall to check how quickly you can identify affected batches and notify customers.
- Be careful with claims: if you make nutrition or origin claims, verify they meet the Code and ACL-especially anything that could be read as a health benefit.
Common Mistakes (And How to Avoid Them)
- Assuming “we’re small, so it doesn’t apply”: Even home‑based and market vendors must comply with the Code.
- Rushing labels: Ingredient changes without relabelling can create allergen risks and ACL problems.
- No supplier specs: Without agreed specs, it’s hard to prove compliance or recover losses if things go wrong.
- Poor temperature records: Cooling logs, delivery checks and probe calibration are your defence in an incident.
- Over‑enthusiastic marketing: Claims that can’t be substantiated may breach the Code and the ACL’s rules on false or misleading representations.
Key Takeaways
- The “ANZFA” Food Standards Code (now FSANZ) sets the rules for safe food, labelling and premises-most Australian food businesses must comply before opening.
- Focus on the basics: training and a Food Safety Supervisor, temperature control, allergen management, cleanable premises, traceability and recall readiness.
- Align your operations and marketing with both the Code and Australian Consumer Law to avoid fines, recalls and reputational damage.
- Lock in your supply chain and customer terms with clear contracts-think Supply Agreement, Sale of Goods Terms, Website Terms, Privacy Policy and Employment Contracts.
- Build compliance into daily routines with simple procedures, logs and regular training-then review whenever your menu, site or suppliers change.
- Getting legal help early makes set‑up faster and reduces risk-especially for labelling, contracts and franchise or co‑packing arrangements.
If you’d like a consultation on setting up or reviewing your food business for Food Standards Code compliance, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no‑obligations chat.








