Chain of Responsibility (CoR) breaches under the Heavy Vehicle National Law (HVNL) carry some of the toughest penalties in Australian regulatory law — and the amounts are far higher than most people expect. Below are the current maximum penalties for Category 1, 2 and 3 offences, verified directly against the National Heavy Vehicle Regulator’s (NHVR) official penalty schedule.
Last updated: 19 July 2026 · FMS Training, a registered training organisation (RTO 45189)
TL;DR
- The HVNL sets three categories of Chain of Responsibility offence.
- Category 1 (reckless, risk of death/serious injury): up to $436,850 and/or 5 years imprisonment for an individual; up to $4,230,550 for a company.
- Category 2 (risk of death/serious injury, not reckless): up to $212,090 (individual) / $2,120,880 (company).
- Category 3 (failure to meet the primary duty): up to $70,580 (individual) / $705,820 (company).
- Executives can be penalised personally — even if the company isn’t convicted.
- These are the maximum penalties current from 1 July 2026 (CPI-indexed), and they continue to apply after the HVNL reforms commence on 1 August 2026.
How are Chain of Responsibility penalties structured?
The HVNL grades a breach of the Chain of Responsibility primary duty (s26C) by how serious the conduct was. The greater the risk and the more reckless the behaviour, the higher the penalty.
| Category | What it covers | Max penalty — individual | Max penalty — company |
|---|---|---|---|
| Category 1 | Reckless conduct that exposes a person to a risk of death or serious injury or illness | $436,850 and/or 5 years imprisonment | $4,230,550 |
| Category 2 | Conduct that exposes a person to a risk of death or serious injury or illness | $212,090 | $2,120,880 |
| Category 3 | A failure to comply with the primary duty | $70,580 | $705,820 |
Figures are maximum penalties under HVNL Chapter 1A (sections 26F–26H), current as at July 2026. Maximum penalties are indexed to CPI each 1 July, so always confirm the latest amounts at nhvr.gov.au.
What is a Category 1 offence?
A Category 1 offence is the most serious. It applies when a party recklessly breaches its primary duty and that breach exposes someone to a risk of death or serious injury or illness. Because it carries a possible prison term, Category 1 is reserved for genuinely reckless conduct — for example, knowingly dispatching dangerously overloaded vehicles or systematically pressuring drivers to exceed fatigue limits.
Can executives be personally penalised?
Yes. Under the executive due diligence duty (HVNL s26D), an executive officer can be prosecuted for failing to exercise due diligence to ensure the business meets its primary duty — and this can happen regardless of whether the company is charged or convicted. Personal liability is one of the main reasons CoR is a board-level issue, not just an operational one.
What other enforcement tools does the NHVR have?
Fines aren’t the only consequence. The National Heavy Vehicle Regulator can also issue:
- Improvement notices — requiring you to fix a problem within a timeframe.
- Prohibition notices — stopping an activity that poses a serious risk.
- Infringement notices — on-the-spot penalties.
- Supervisory intervention orders and enforceable undertakings in appropriate cases.
There’s also the cost that doesn’t appear in the legislation: reputational damage, lost contracts and insurance impact after a publicised prosecution.
How do you reduce your penalty risk?
The defence the law actually rewards is evidence that you did what was reasonably practicable:
- documented CoR policies and a Safety Management System;
- trained staff who understand their obligations (and records to prove it);
- active verification that controls work; and
- prompt review after incidents and law changes — including the HVNL reforms commencing 1 August 2026.
Frequently asked questions
What is the maximum penalty for a Chain of Responsibility breach?
Up to $436,850 and/or 5 years imprisonment for an individual, and up to $4,230,550 for a company, for a Category 1 (reckless) offence. These figures are current as at July 2026 and are indexed to CPI each 1 July.
What’s the difference between Category 1, 2 and 3 offences?
Category 1 involves reckless conduct risking death or serious injury; Category 2 involves that risk without recklessness; Category 3 is a failure to meet the primary duty. Penalties step down accordingly — from $436,850 / $4,230,550 (Category 1), to $212,090 / $2,120,880 (Category 2), to $70,580 / $705,820 (Category 3).
Can a company director go to jail for a CoR breach?
Imprisonment (up to 5 years) is available for a Category 1 offence against an individual, including executives who recklessly breach their duties.
Does training reduce penalty risk?
Training doesn’t remove liability, but documented CoR training is strong evidence of the “reasonably practicable” steps and due diligence the law expects, which courts and regulators take into account. FMS Training’s Chain of Responsibility Awareness course gives your team a Certificate of Completion you can keep on file as that evidence.
Train your team before a breach, not after
FMS Training’s online Chain of Responsibility Awareness course explains the duties, penalties and how to comply — self-paced, with a Certificate of Completion you can keep on file as evidence of training. For a broader overview of CoR duties, see our guide to what Chain of Responsibility means for your business.
Sources
- National Heavy Vehicle Regulator (NHVR), Penalties and infringements — Schedule of HVNL Penalties, Infringement Penalties and Demerit Points, 1 July 2026 to 31 July 2026.
- Heavy Vehicle National Law, Chapter 1A (Safety Duties), sections 26F, 26G and 26H (Category 1, 2 and 3 offences).
Figures current as at July 2026; maximums are indexed and may change. This is general information about the HVNL, not legal advice — always confirm current figures at nhvr.gov.au.