Manufacturing industry
Business types in this industry
The manufacturing industry includes businesses that transform materials into new products. This includes businesses who create or process:
- food and beverages
- tobacco products
- textiles, leather, clothing and footwear
- wood, pulp and paper products
- printed goods
- chemical products
- metal and plastics manufacturing
- machinery and equipment
- furniture and household goods
Legislation, standards and initiatives
- Competition and Consumer Act 2010
- Australian Consumer Law (ACL)
- Privacy Act 1988
- Anti-dumping laws
- Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act)
- Food Standards
- Therapeutic Goods Act 1989
- National trade measurement legislation
- Hazardous Waste (Regulation of Exports and Imports) Act 1989
In additional to legislation, you should understand the manufacturing and processing standards to ensure your products, services and systems are safe and reliable. These standards include:
There are specific packaging and labelling codes and standards for certain goods, including:
- Pesticide labelling codes
- Therapeutic goods labelling and packaging
- Tamper-evident packaging code of practice
- Food labelling standards
- Country of origin labelling on food
- Warning and advisory labelling on food
- Regulatory Compliance Mark for certain electrical equipment
- Electromagnetic compatibility (EMC) labelling requirements
The ACCC provides a number of guides and publications providing useful information to manufacturers. Some of these include:
- Care labelling for clothing and textile products: supplier guide
- Testing to product standards – principles for test organisations
- A guide to testing: product safety
- Electrical & whitegoods - an industry guide to the Australian Consumer Law
- Biodegradable, degradable and recyclable claims on plastic bags
If a product you manufactured has a design or manufacturing fault, you may need to recall your product.
Licences and permits
Certain products require licences and permits in order to manufacture them. Some of these, as well as the agencies overseeing them include:
- Licence to manufacture therapeutic goods
- Australian Industrial Chemicals Introduction Scheme (AICIS) registration
- Controlled Substances Import Export Licence
- Certification of Australian wood packaging for export
- Registration for the manufacturing, transport, trade or supply of pesticides and veterinary medicines
- Registration as a responsible supplier under the Electrical Equipment Safety System (EESS)
- Certification of certain electrical equipment manufactured in Australia and overseas.
Further, you may require an excise licence for activities related to producing or manufacturing:
- alcohol
- fuel and petrol products (including gaseous fuels)
- tobacco
- duty-free.
Find the licences and permits you need for your business
Search the Australian Business Licence and Information Service (ABLIS) to find information on the licences you may need.
Search nowTaxation
Manufacturing businesses have specific goods and services tax (GST) measures. It’s important that you know your GST obligations and to make sure you register with the Australian Taxation Office (ATO) to ensure you can claim your GST credits.
Employ people
If you're looking to employ staff, there are Australia’s national workplace laws specific to the manufacturing industry that you'll need to comply with.
Use our checklist for small business owners to help you meet Australian laws when hiring an employee. We’ve also included some tips that might help you through the hiring process.
If you're ready to employ someone, create an employment contract tailored to the award and your business needs.
Workplace health and safety (WHS)
There are general work health and safety regulations for all businesses, however there are state and territory WHS requirements that apply to businesses in the manufacturing industry:
Environment
Businesses in the manufacturing industry can have a major impact on the environment. Businesses that make environmentally conscious decisions can reduce this impact. They can also benefit from greater community awareness which leads to consumers making more environmentally friendly purchases.
The main environmental issues that businesses in the manufacturing industry should understand include:
- dealing with resource shortages
- sustainable practices
- environmental reporting
- proper disposal of trade waste
- biodegradable packaging options
- waste management and reduction.
The Department of Climate Change, Energy, the Environment and Water has tips for reducing your energy costs in their manufacturing industry sector guide.
Intellectual property
It is important to protect your intellectual property when starting and growing your business. ‘Intellectual property’ (IP) is the creation of original ideas, inventions or brands.
You may need to consider applying for a:
- trademark to protect your brand
- patent to protect a new invention
- design right, to protect the visual appearance of a product.
These rights can be applied for through IP Australia.
In Australia, you have automatic protection in relation to:
- copyright, protecting drawings, art, literature, music, film, broadcasts, computer programs
- trade secret rights, protecting secret formulas, processes and methods
- circuit layout rights, protecting layout designs for integrated circuits and computer chips
Insurance
Alongside compulsory insurances, the manufacturing industry has specific insurances. These insurances include:
- General liability
- Product liability
- Public liability
- Assets and revenue insurance
- Professional indemnity insurance
- Machinery breakdown insurance
- Business interruption insurance.
Insurance can help you protect your business in case of machinery breakdown, consumer product liability and property damage or theft.
Find support
If you need advice or support, consider getting help from your industry association, a business adviser, accountant or legal professional.