If you are a director, partner or senior manager of any business in the heavy vehicle Chain of Responsibility, you carry a personal due diligence duty under the Heavy Vehicle National Law — and you can be prosecuted even if your company never is. With the reformed HVNL commencing on 1 August 2026, executive accountability is about to face its sharpest scrutiny yet.
Key facts at a glance
- The HVNL places a personal due diligence duty on executives of every business that is a Chain of Responsibility (CoR) party — directors, partners and managers whose decisions affect transport activities.
- The executive duty is independent: an executive can be prosecuted without any prior breach or charge against the business itself.
- Maximum penalties for the most serious (Category 1) breaches reach $300,000 and five years’ imprisonment for individuals, and into the millions for corporations.
- The duty is proactive and cannot be delegated — signing off and assuming compliance is not due diligence.
- The reformed HVNL commences 1 August 2026, sharpening the focus on documented, risk-based safety management across the chain.
- CoR applies to ten party functions — consignors, consignees, packers, loaders, unloaders, loading managers, operators, prime contractors, schedulers and employers — so many “non-transport” businesses have executives who carry this duty without knowing it.
What is the executive due diligence duty?
Under the Heavy Vehicle National Law, every business that performs a CoR function owes a primary duty to ensure the safety of its transport activities so far as is reasonably practicable. Sitting above that is a second, personal duty: each executive of that business must exercise due diligence to ensure the business complies with its primary duty.
The National Heavy Vehicle Regulator (NHVR) describes due diligence as taking reasonable steps to keep up-to-date knowledge of safe transport practice, understand how the business engages in transport activities, understand the hazards and risks involved, and ensure the business actually has — and uses — appropriate resources and processes to eliminate or minimise those risks. In short: know, understand, resource and verify.
Who counts as an executive?
The net is wider than the boardroom. It captures directors and partners, but also any person who is concerned with, or takes part in, the management of the business. A general manager who sets delivery schedules, a chief financial officer who approves (or refuses) spending on load restraint equipment, or an operations manager who decides contractor arrangements can all be executives for HVNL purposes. Job title matters less than actual influence over how transport activities run.
Can an executive really be prosecuted if the company isn’t?
Yes — and this is the point most boards miss. The executive duty stands alone. There does not need to be a prior breach by the business for an executive to be prosecuted; a failure to proactively exercise due diligence is itself the offence. Equally, a company can be charged over its primary duty without its executives being charged. The two duties are assessed separately.
| Primary duty (the business) | Executive due diligence duty (the person) | |
|---|---|---|
| Who owes it | Every business performing one of the ten CoR party functions | Each director, partner or manager who influences transport activities |
| What it requires | Ensure the safety of transport activities so far as is reasonably practicable | Proactive steps to know, understand, resource and verify the business’s compliance |
| Can it be delegated? | No — it is non-delegable | No — it attaches personally to the executive |
| Trigger for prosecution | Failure to manage transport safety risks | Failure to exercise due diligence — no company breach required first |
| Maximum Category 1 penalty | Fines in the millions for corporations | Up to $300,000 and five years’ imprisonment |
What changes on 1 August 2026?
The reformed HVNL commences on 1 August 2026. The parties in the chain, the primary duty and the executive due diligence duty all carry over unchanged — but the reform strengthens the system around them: a new accreditation scheme built on safety management systems, strengthened fitness-to-drive requirements, and modernised fatigue and work diary rules. Our HVNL reform readiness check covers what businesses should have in place, and our reform explainer details what changes on the day.
For executives specifically, the reform raises the evidentiary bar. Documented, risk-based safety management is becoming the reference standard for the industry — which means an executive who cannot point to briefings, reports, resourcing decisions and reviews will find it harder to argue they exercised due diligence.
The uncomfortable question for boards: if the regulator asked tomorrow, could each of your executives personally evidence what they know about the business’s transport risks, and what they did about them? “We have a policy” is not an answer to a personal duty.
What evidence do regulators and courts look for?
Legal commentary on HVNL enforcement consistently points to the same markers: executives who receive and act on regular CoR performance reporting; documented risk assessments the executive has actually seen; resourcing decisions that match identified risks; verification that procedures are used in practice, not just written; and — critically — training records showing the executive and their people understand the obligations. Due diligence is demonstrated on paper trails, not good intentions.
Where does training fit for executives and managers?
Formal CoR training does two jobs for an executive. It builds the up-to-date knowledge the duty explicitly requires — and it creates a dated, auditable record that the knowledge step was taken. FMS Training (RTO 45189) offers two online options, Australia-wide. For executives, managers and anyone with CoR decision-making authority, the nationally recognised TLIF0009 – Ensure the Safety of Transport Activities (Chain of Responsibility) unit leads to a Statement of Attainment — the strongest form of training evidence. For drivers, warehouse staff and everyone else in the chain, the CoR Awareness course online provides workforce-wide coverage. Not sure which fits which roles? Our guide to choosing the right CoR course breaks it down.
Frequently asked questions
What is executive due diligence under the HVNL?
A personal legal duty requiring each executive of a Chain of Responsibility business to take proactive, reasonable steps to ensure the business complies with its primary duty to make its transport activities safe.
Who is an “executive” under Chain of Responsibility laws?
Directors, partners and any person concerned with or taking part in the management of the business — including general, operations and financial managers whose decisions affect transport activities.
Can an executive be prosecuted if the company hasn’t breached the law?
Yes. The executive duty is independent — failing to exercise due diligence is itself an offence, with no prior breach or charge against the business required.
What are the penalties for breaching the executive duty?
For the most serious (Category 1) breaches, individuals face up to $300,000 in fines and five years’ imprisonment. Corporate penalties for primary duty breaches run into the millions.
Does the 1 August 2026 HVNL reform change the executive duty?
The duty itself carries over unchanged, but the reform strengthens the surrounding system — accreditation built on safety management systems, fitness-to-drive and modernised fatigue rules — raising the standard of evidence executives are expected to show.
Can executives delegate their due diligence duty?
No. The duty attaches personally to each executive. Delegating tasks is permissible; delegating the duty is not — the executive must still know, understand, resource and verify.
Which businesses have executives with CoR duties?
Any business performing one of the ten CoR party functions — consigning, receiving, packing, loading, unloading, managing loading, operating, prime contracting, scheduling or employing drivers. Many retailers, manufacturers and wholesalers qualify without realising.
What CoR training suits executives and managers?
The nationally recognised TLIF0009 unit, delivered online Australia-wide by FMS Training (RTO 45189), leads to a Statement of Attainment — auditable evidence of the knowledge step in due diligence. The CoR Awareness course covers the broader workforce.
Sources: NHVR — Executive duty and due diligence; NHVR — Regulatory Advice: The Primary Duty; Holding Redlich — Executive reporting an essential pillar of CoR compliance; training.gov.au — TLIF0009 Ensure the Safety of Transport Activities.