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If you’re a business owner in 2025 and you sell or handle food intended for consumption, there are several important things you need to know before you start plating up. Staying compliant not only protects your customers but also shields your business from costly penalties and reputational harm.
Generally, you will need to notify or register your food-related activity with your local council to obtain the proper licences and certifications to operate safely and legally.
For a small business, the regulatory landscape can seem daunting, with complex legal jargon to navigate. Getting advice from a food and beverage lawyer or a specialist in regulatory compliance early on can streamline the process and save you energy in the long run. For additional guidance on setting up your business correctly, explore our resources on business name registration and entrepreneurial planning.
We’ve simplified the regulatory requirements below so that you can focus on creating delicious menus while ensuring your business meets the updated standards for 2025.
What Do I Need To Comply With?
Any food business in NSW must comply with the following laws and regulations, which have been updated to reflect best practices and recent amendments:
- Food Act 2003 (NSW);
- Australia New Zealand Food Standards Code (FSANZ); and
- Food Regulation 2015 (NSW), now supplemented by amendments introduced in late 2024.
These requirements operate in addition to any specific local council certifications, ensuring that all aspects of food handling and sales are thoroughly managed.
What Is The Food Act 2003?
The Food Act 2003 sets out the food safety standards required for any food produced or sold in NSW. Its purpose is to ensure that food is clean, safe to eat, and suitable for human consumption. In response to evolving industry practices and consumer expectations, the Act has been periodically updated, with the latest amendments coming into effect in 2024.
What Is A Food Business?
A food business includes any enterprise or activity that involves the sale of food or the handling of food intended for sale. This applies whether you are catering a one-off event or running a full-scale commercial operation such as a restaurant, cafe, food truck, or even a pop-up eatery. The Act applies uniformly to all food businesses in NSW.
In simple terms, ‘food’ refers to any substance used for human consumption – including ingredients, additives, and materials that come into direct contact with food during its preparation. So if you are involved in preparing, packaging, or selling food, the Act is likely to apply to your business.
Examples Of Offences/Breaches Of The Food Act
The Food Act outlines a number of offences that can lead to significant penalties. Some examples include:
- Handling or selling food in an unsafe manner that could cause physical harm to someone;
- Falsely describing food-such as mixing it with inferior or less nutritious ingredients-that may result in consumer harm;
- Dealing in unsuitable food, for example, selling perished items or products derived from diseased animals;
- Using misleading advertising, packaging or labelling that misrepresents the product;
- Selling food that does not match the product description demanded by the purchaser;
- Supplying unfit equipment or employing inappropriate packaging and labelling for food products; and
- Failing to comply with the Australia New Zealand Food Standards Code.
There are also enhanced penalties for offences related to beef products, where mislabelling types, quality, or classifications now attract stricter regulatory actions.
The Act also mandates that all food businesses appoint a Food Safety Supervisor (FSS). This role is crucial for maintaining standards in safe egg handling, allergen management, and cleaning and sanitising procedures. Similar requirements now apply in Queensland, Victoria, and the ACT.
Who Can Enter And Inspect My Premises?
The Food Act grants authorised officials broad entry and inspection rights. At any time, an ‘authorised official’ may enter your business premises or any food transport vehicle to confirm your compliance with the Act. These officials can inspect, take samples, and document conditions through photographs, recordings, or by reviewing your records.
If they discover that your premises, equipment, or food products do not meet the required standards, they may seize items as evidence, and if those items are damaged or cannot be returned, you could be entitled to compensation.
In cases where non-compliance is found, an authorised officer may issue an:
- Improvement notice. This could require you to clean, sanitise, replace equipment, or update your food safety programme accordingly.
- Prohibition notice. Failure to rectify the issues noted in an improvement notice may result in being barred from handling or selling food or using certain equipment.
I’ve Breached The Food Act, Now What?
If you have breached any part of the Food Act, there may be some defences available, for example, if:
- Your food is intended for export and complies with the relevant laws of the importing country;
- You exercised due diligence and took all reasonable precautions to prevent the offence;
- You immediately disposed of or destroyed any unsafe food products; or
- You reasonably believed that a piece of equipment or material was not meant for food handling purposes.
If no valid defence is available, you could face serious consequences, including improvement or prohibition orders, substantial fines for each separate offence, and potential prosecution by the NSW Food Authority. Moreover, the Authority maintains a ‘Name and Shame’ Register of non-compliant businesses, which can damage your brand reputation, and your operational licence might be suspended or even cancelled.
What If I’m Not In NSW?
Food safety laws vary slightly across Australia. Depending on your state or territory, you might be subject to different legislative frameworks and risk classification systems:
- Food Act 1984 (Victoria): Food businesses are categorised by risk, with Class 1 posing the highest risk and Class 4 the lowest, which determines the frequency and intensity of inspections.
- Food Act 2006 (Queensland)
- Food Act 2001 (Australian Capital Territory)
- Food Act 2001 (South Australia): Businesses here are evaluated using a Food Safety Rating Scheme alongside risk classifications.
- Food Act 2004 (Northern Territory): Classifications are determined based on factors such as food type, business activity, processing methods, and the customer base.
- Food Act 2008 (Western Australia)
- Food Act 2003 (Tasmania)
Do I Have To Follow The Food Standards Code?
Yes, regardless of where you are in Australia, compliance with the Australia New Zealand Food Standards Code is mandatory. This overarching federal regulation ensures uniform food safety standards are maintained nationwide.
The Code is divided into four chapters. Chapter 1 outlines standards that apply to all foods, including labelling requirements and the use of materials that come into contact with food. Chapter 2 specifies standards for particular foods such as meats, dairy products, and alcoholic beverages. Chapter 3 mandates that all food businesses implement a food safety programme-which includes regular hazard checks, documented control measures, and at least annual reviews. Finally, Chapter 4 sets the standards for primary production and processing of agricultural products.
How Can I Protect My Food Business?
In 2025, ensuring that your food business adheres to all relevant regulations is crucial to avoid significant fines, operational disruptions, and reputational damage. Embracing digital tools to monitor and record compliance activities is becoming increasingly popular among industry leaders. These systems help in maintaining real-time records and streamline annual reviews of your food safety programme.
Here are some practical tips for protecting your business:
- Keep your premises, equipment, and food products impeccably clean and well-maintained;
- Ensure that staff involved in food preparation and handling are rigorously trained in food safety and hygiene practices, as outlined in our online business safety guide;
- Verify that all labelling is honest, accurate, and fully compliant with the Food Standards Code;
- Appoint a qualified Food Safety Supervisor before commencing operations;
- Adhere strictly to any directions from authorised officers during inspections;
- Regularly review and update your food safety programme to keep pace with regulatory changes; and
- Consult with a lawyer to ensure comprehensive compliance-our regulatory compliance lawyer can offer expert guidance tailored to your business.
Additionally, protecting your intellectual property, such as your brand and unique recipes, is equally important. Consider securing your business identity with a registered trademark; for advice, check out our guide on trademark registration. This not only protects your brand but also sets you apart in the competitive food industry of 2025.
We understand that navigating the regulatory world can be overwhelming and complex. If you have further questions or need personalised advice, please reach out to us at team@sprintlaw.com.au or call 1800 730 617 for a free, no-obligation consultation. We’re here to help you keep your food business safe, compliant, and thriving well into the future.
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