Penalties for Non-Compliant Electrical Equipment in Victoria (2026)

Victoria's energy safety regulator is sending a clear message: non-compliance with electrical safety laws will cost you — significantly more than it used to.

If you manufacture, supply, install, or sell non-compliant electrical equipment in Victoria, the landscape of penalties has shifted dramatically. Through a series of legislative amendments enacted between 2024 and 2025, Energy Safe Victoria (ESV) now wields substantially stronger enforcement powers, with maximum penalties for many offences increasing six-fold or more.

Whether you're a sole trader electrician, a registered electrical contractor, or a large corporation, ignoring compliance obligations in 2026 carries financial consequences that can no longer be shrugged off. This definitive guide breaks down the key penalty changes, explains what they mean in real dollar terms, and outlines what businesses and individuals must do to stay on the right side of the law.

1. The Legislative Backdrop: How We Got Here

Victoria's energy safety framework is built on three cornerstone pieces of legislation: the Electricity Safety Act 1998, the Gas Safety Act 1997, and the Pipelines Act 2005. Energy Safe Victoria, established as a statutory body under the Energy Safe Victoria Act 2005, is the independent regulator responsible for enforcing compliance across all three.

The recent penalty increases didn't happen in a vacuum. They are the product of several years of reform:

• The Grimes Review (2018): An independent review of Victoria's electricity and gas network safety framework recommended strengthening ESV's regulatory capabilities and enforcement approach.
• The Energy Legislation Amendment (Energy Safety) Act 2023: Implemented several of those recommendations, with changes taking effect in May 2024, including dramatically increased fines for major electricity companies and gas companies.
• The Energy and Land Legislation Amendment (Energy Safety) Act 2025: Passed by the Victorian Parliament in May 2025, this further expanded ESV's powers and increased penalties for a broader range of offences under the Electricity Safety Act and Gas Safety Act.

The cumulative effect is a regulatory environment where ESV now has more tools, more time to prosecute, and heftier penalties at its disposal than at any point in Victoria's history.

2. Understanding Penalty Units: The Numbers Behind the Fines

Victorian penalties are calculated using penalty units, the value of which is set annually by the Victorian Treasurer and updated each 1 July. This means that even without legislative change, dollar penalties increase over time as the unit value is indexed.

That ~3% annual increase may seem modest, but when multiplied across hundreds or thousands of penalty units issued for harboring non-compliant electrical equipment in Victoria, the difference is material.

3. The Big Picture: Key Penalty Increases

The May 2025 amendments brought several significant increases under the Electricity Safety Act and Gas Safety Act. Here are the major highlights you must know:

A. Electricity Safety Act — Individual Offences

One of the most striking changes involves offences related to knowingly installing or supplying unsafe electrical equipment. Prior to the reforms, the maximum penalty for an individual was just 40 penalty units (~$7,900). That figure has now jumped to 240 penalty units (~$48,842) — a six-fold increase.

B. Electricity Safety Act — Corporate Offences

For bodies corporate (companies), the increases are even more dramatic. A new maximum penalty of 1,200 penalty units (~$244,212) has been introduced for knowingly installing unsafe equipment or carrying out unsafe electrical equipment work.

That last one — $305,265 for failure to cease using electrical equipment as directed — represents one of the highest individual penalties available under the Act.

C. Gas Safety Act & Major Companies

The reforms didn't spare the gas sector. Penalties for knowingly supplying an unsafe appliance jumped to $244,212 for bodies corporate. Furthermore, for major electricity companies (MECs) and gas companies, potential fines for general duty offences increased from just under $290,000 to over $1.7 million.

4. Beyond Fines: Other Enforcement Powers

The penalty increases are only part of the story. ESV's broader enforcement toolkit has also been significantly expanded:

• Enforceable Undertakings: ESV can now accept enforceable undertakings requiring the offending entity to take specific corrective actions or invest in safety improvements without court prosecution.
• Incident Site Preservation: Major companies must preserve the sites of certain incidents until directed otherwise by ESV to ensure evidence is not lost.
• Extended Seizure Powers: ESV can now retain seized items for 60 days, or longer if extended by the Court, for complex forensic analysis.
• Extended Prosecution Timeframes: The period to commence prosecution has been extended to three years from when ESV becomes aware of the alleged offence, addressing latent defects.

5. How ESV Detects Non-Compliance

According to ESV's Compliance and Enforcement Policy, non-compliance is actively detected through:

1. Incident reports from energy businesses, emergency services, and the community.
2. Regular periodic compliance reporting from operators of networks.
3. Inspections and audits — both proactive and targeted.
4. Investigations of serious incidents and complaints.

ESV's enforcement officers have statutory powers to enter premises, seize certain items, and issue notices and infringements. ESV describes itself as a regulator that "will never walk past an unsafe situation." Ignorance of the law is not a defence.

6. What This Means for Your Business

For Electrical Contractors and Electricians

If you're a licensed electrician or registered electrical contractor in Victoria, it is more important than ever to ensure all work complies with the Wiring Rules (AS/NZS 3000) and that you test all work at required intervals. A single infringement for supplying non-compliant electrical equipment in Victoria can now cost an individual over $12,000 on the spot, and up to $48,842 in court.

For Corporations and Equipment Suppliers

The corporate penalty regime is catastrophic for rule-breakers. Companies must ensure all in-scope equipment is registered, certified, and marked before supply. Given that each individual item of non-compliant equipment can constitute a separate offence, the cumulative exposure for a supplier with significant inventory can easily bankrupt the business.

For Rental Providers

Landlords face additional obligations under the Residential Tenancies Regulations 2021. Rental properties must meet electrical safety minimum standards, including modern switchboards and RCDs. Gas safety checks must also be conducted every two years.

7. The Broader Context: A Safer Victoria

These massive penalty increases serve a clear purpose: to better reflect the seriousness of the offences and act as a stronger deterrent. Victoria's energy safety laws recognise that electricity is inherently dangerous, and that safety is achieved through strict compliance — not through luck.

"The increased penalties send an unambiguous signal to the market: cut corners on electrical safety, and the financial consequences will be severe."

8. Key Takeaways Summary

• Penalty units for FY 2025–2026 are set at $203.51 each.
• Individual maximums jumped from 40 to 240 units (~$48,842).
• Corporate maximums now reach 1,200 units (~$244,212).
• Major companies face fines exceeding $1.7 million.
• ESV's powers have expanded to include 60-day item seizures and extended prosecution timeframes.

9. Stay Compliant — Stay Safe

The message from Victoria's energy safety framework in 2026 is unmistakable: compliance is not optional. The cost of compliance is always significantly less than the cost of getting caught utilizing non-compliant electrical equipment in Victoria.

At Hume Test & Tag, we specialize in keeping Melbourne and Victoria businesses out of legal trouble. We provide comprehensive electrical compliance services in strict accordance with the AS/NZS 3760:2022 standards. We offer same-day digital reports, detailed asset registers, and automated retest reminders to ensure your business remains 100% audit-ready.