Fire Safety Liability in NSW: What Building Owners Need to Know in 2026
- EverSure Fire
- 3 days ago
- 5 min read
There's a question we hear in almost every conversation with building owners and strata committees:
"If something goes wrong, who's actually liable?"
The answer under NSW law is unambiguous: the building owner.
Not the tenant. Not the managing agent. Not the fire safety contractor. The owner or, in the case of strata, the owners corporation.
As of 2026, the consequences for getting it wrong have never been steeper. New regulations, higher fines, stricter enforcement, and an increasingly unforgiving insurance landscape have shifted fire safety compliance from a background obligation to a front-of-mind business risk.
This article sets out exactly where the liability sits, what the penalties look like, and what building owners need to do to stay protected.
The Legal Framework: Where the Duty Comes From
Fire safety liability in NSW rests on three interconnected pieces of legislation.
1. Environmental Planning and Assessment Act 1979 (EP&A Act)
This is the primary legislation. It places a clear duty on building owners to ensure that essential fire safety measures are installed, maintained, and performing to the standard required by the building's Fire Safety Schedule.
The EP&A Act also provides the enforcement powers that allow councils and Fire & Rescue NSW to issue fire safety orders, conduct inspections, and prosecute non-compliance.
2. EP&A (Development Certification and Fire Safety) Regulation 2021
This regulation sets out the detailed requirements for fire safety maintenance and the AFSS process. Since 13 February 2026, it mandates that all fire safety measures covered by an AFSS be maintained in accordance with AS 1851-2012 – the national standard for routine servicing of fire protection systems.
Sections 81 and 81A are the critical provisions. They define maintenance obligations, specify who is responsible, and set out the penalty framework.
3. Work Health and Safety Act 2011 (WHS Act)
The WHS Act imposes a general duty of care on persons conducting a business or undertaking, including building owners and strata committees to ensure the health and safety of workers and visitors so far as is reasonably practicable.
Fire safety failures can constitute a breach of this duty, attracting separate penalties enforced by SafeWork NSW.
Together, these three instruments create a layered liability framework where a single fire safety failure can trigger enforcement action from your local council, Fire & Rescue NSW, and SafeWork NSW simultaneously.
The Penalty Structure: What Non-Compliance Actually Costs
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AFSS non-compliance
Failing to lodge your Annual Fire Safety Statement on time attracts escalating weekly penalty notices. According to City of Sydney Council's published enforcement guidance, infringement notices start at around $500 in the first week and escalate to $3,000–$4,000 per week beyond week four.
For serious or continued non-compliance, councils can initiate proceedings in the NSW Land and Environment Court, where maximum penalties reach $110,000 for corporations.
AS 1851-2012 non-compliance
Under the February 2026 amendments, failure to maintain essential fire safety measures in accordance with AS 1851-2012 is a strict liability offence. Fines reach:
$33,000 for individuals
$66,000 for corporations per breach
The NSW Building Commissioner has been clear: the leniency period is over.
What "strict liability" means for you
You don't need to have been negligent. You don't need to have intended to breach the standard. If your maintenance records don't demonstrate compliance with AS 1851-2012, the offence is made out. Full stop.
Real Enforcement: The Case That Should Concern Every Sydney Landlord
In 2025, Inner West Council brought proceedings in the NSW Land and Environment Court against two property companies: Starcorp Property and Taleb Property over fire safety and development compliance failures at properties in Tempe.
The companies had already been convicted and fined a combined $395,000 for unauthorised development and breach of conditions. Council then sought orders to shut down operations entirely until compliance was achieved.
This is not an isolated case. Councils across Sydney are actively auditing, inspecting, and prosecuting. The regulatory posture has shifted from reactive to proactive.
The Insurance Loophole Nobody Talks About
This is arguably the most dangerous consequence of non-compliance and the one that catches building owners off guard most often.
Commercial property insurance policies almost universally contain a clause requiring the policyholder to comply with all statutory obligations. That includes maintaining essential fire safety measures in accordance with AS 1851-2012, lodging a current AFSS, and keeping documented maintenance records.
If a fire occurs and a forensic investigation reveals your maintenance programme was not compliant – no logbook, missed servicing intervals, expired extinguisher tags, failed emergency lighting tests, your insurer may have valid grounds to deny your claim entirely.
The building burns. The claim is lodged. The loss assessor requests your maintenance records. You can't produce them. The policy is voided.
This isn't speculation. Insurers are increasingly:
Requesting AFSS compliance evidence and AS 1851 servicing records as part of renewal conditions
Adjusting premiums based on the quality of fire safety documentation
Refusing to renew policies for buildings with unresolved defects
Personal Liability: Where It Gets Truly Uncomfortable
For strata buildings, there's an additional layer that committee members often don't appreciate.
The Strata Schemes Management Act 2015 places obligations on the owners corporation and, by extension, the strata committee members who manage it. Committee members who fail to act on known fire safety compliance issues may face personal liability.
If a committee receives a fire safety report identifying critical defects and votes against funding the rectification, each member who voted against it is potentially exposed.
The same principle applies to company directors. Under the WHS Act, officers of a corporation have a personal duty to exercise due diligence in ensuring WHS compliance. Fire safety falls squarely within that scope.
What to Do: Protecting Yourself in 2026
Compliance is no longer just about ticking boxes before your AFSS deadline. Here's the minimum standard you need to be meeting right now:
1. Confirm AS 1851-2012 servicing is in place. Your contractor must be following the structured inspection frequencies in the standard – monthly, quarterly, six-monthly, and annual tasks depending on the system. Generic reports are no longer sufficient.
2. Maintain your on-site logbook. This is now a mandatory requirement under the February 2026 changes. Every servicing visit, test result, and identified defect must be recorded and accessible for inspection at any time.
3. Know your AFSS deadline. Council does not send reminders. Your statement is due 12 months after the previous one. Put it in your calendar now, and engage your accredited practitioner at least 8–12 weeks before the deadline.
4. Address defects promptly. An unresolved defect that sits in a report for months is exactly the kind of paper trail that can defeat an insurance claim or support a prosecution. Act on findings as soon as they're identified.
5. Get documentation in order before renewal. If your insurer asks for maintenance records at renewal and you can't produce them, you may find yourself without cover. Start building that paper trail now.
How EverSure Can Help
EverSure Fire Protection has been managing fire safety compliance for buildings across Greater Sydney since 2006. We work with building owners, strata managers, property managers, and facilities managers to ensure their obligations are met — not just on paper, but in practice.
Our services include:
If you're unsure whether your building is compliant or you've received an enforcement notice and need to act quickly, call us today.
📞 02 8212 4801
Disclaimer: This article provides general information about fire safety obligations under NSW law as of May 2026. It is not legal advice. For guidance specific to your property and circumstances, consult a qualified fire safety practitioner or solicitor.
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