Work Health and Safety (Managing Psychosocial Hazards at Work) Code of Practice 2024
Cost of control measuresCost of control measures
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Cost of control measures
Cost is a matter to be taken into account and weighed up with other relevant matters to identify what is reasonably practicable, but this must only be done after assessing the extent of the risk and the ways of eliminating or minimising it.
Where the cost of implementing control measures is grossly disproportionate to the risks, it may be that implementing them is not reasonably practicable and therefore not required. This does not mean that you are excused from doing anything to minimise the risks. A less expensive way of minimising the risks must instead be used. If two control measures provide the same level of protection and are equally reliable, you can implement the less expensive option.
The question of what is reasonably practicable is determined objectively, not by reference to your particular business or undertaking’s capacity to pay, or other individual circumstances. You cannot provide workers with a lower level of protection simply because you are in a lesser financial position than another PCBU facing the same hazards or risks in similar circumstances.
Your goal to produce a product or provide a service at a particular price cannot override your duty to ensure, so far as is reasonably practicable, the health and safety of your workers and others.
For further information see the Safe Work Australia Interpretive Guideline: The meaning of ‘reasonably practicable’.