National Measurement Institute: National Compliance Policy

Date published:
10 October 2025

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This policy explains our approach to regulating compliance with Australia’s measurement law. It describes how we respond when a business or person doesn’t fulfill their duties under the law. We call this non-compliance.

Why compliance matters

Australia’s measurement system ensures that goods being sold are measured correctly. Compliance with Australia’s measurement laws helps build a trusted measurement system for Australia that:

  • supports consumers and businesses to make informed decisions when they buy something, so they ‘get what they have paid for’
  • ensures a level playing field for businesses in Australia
  • limits financial harm to consumers and businesses.

Australia’s measurement laws are the National Measurement Act 1960, the National Measurement Regulations 1999 and the National Trade Measurement Regulations 2009.

How we identify non-compliance

Our trade measurement inspectors visit businesses to check that they comply with Australia’s measurement laws. The visit could be a targeted audit that is part of our national compliance program, or it can be in a response to a complaint.

We find that most businesses want to comply with Australia’s measurement laws. When businesses don’t comply with those laws, one of our responsibilities is to change their behaviour.

Responses to non-compliance

We will respond when a business doesn’t comply with Australia’s measurement laws. Our response depends on the circumstances. Our aim is to deter future non-compliance without creating unnecessary burdens on business.

If we find non-compliance when we audit a business, we may issue:

  • a non-compliance notice – confirms the non-compliance in writing. When we follow up, most businesses will have fixed the problem
  • a notice of incorrect measuring instrument – instructs the business to not use a measuring instrument until it is fixed and re-verified (checked for accuracy). If the fault doesn’t cause harm, we may let the trader keep using the instrument if they fix it within a given time.

Our trade measurement inspectors tell business what they find before they leave. We see this as an important part of helping business understand what they need to do to comply with Australia’s measurement laws.

For prepackaged goods, businesses may ask for a permit to allow the importation or sale of prepackaged goods that contain minor labelling non-compliances that do not mislead.

Serious, repeated or deliberate non-compliance may result in one of the following responses:

Responses to serious, repeated or deliberate non-compliance
Response What it looks like
Warning letter

When we find repeated minor non-compliance, but it doesn’t cause significant harm, we will formally warn a business that it:

  • has committed an offence
  • needs to take action to ensure future compliance
  • can expect more inspections
  • may be subject to further penalties if we find more offences.
Infringement notice

We may issue an infringement notice when:

  • we find non-compliance that causes harm, or
  • a warning letter has not changed the trader’s practices.

It imposes a fine under strict liability criminal offence provisions in measurement law. More serious or repeated offences attract larger fines. If the business doesn’t pay the fine or the behaviour continues, we may pursue it through the courts.
Compliance agreement

We may negotiate a compliance agreement when:

  • we find systemic non-compliance at multiple premises
  • the business genuinely commits to correcting the issues
  • the business already has effective quality assurance systems in place.
Enforceable undertaking

We may negotiate an enforceable undertaking in response to systemic non-compliance when:

  • it creates clear and substantial harm, possibly on a state or national level
  • the business genuinely commits to correcting the issues
  • the business already has effective quality assurance systems in place.

If the business doesn’t meet the terms of the undertaking, we may pursue it through the courts.
Prosecution

We may refer serious non-compliance to the Commonwealth Director of Public Prosecution. We take this action when we consider it is in the public interest to go to court and:

  • an investigation finds clear and substantial harm or
  • other regulatory tools have not changed non-compliant behaviour, or
  • an infringement notice remains unpaid.

How we decide our response

Most businesses try to do the right thing, and a written non-compliance notice is enough to help them identify and fix the problem. Serious, repeated, or deliberate non-compliance attracts a higher level response. 
When deciding our response to non-compliance, we follow these 3 principles:

  • Transparency – we explain to businesses the reasons for our decision when we find non-compliance.
  • Consistency – we are consistent in the way we interpret, apply and enforce Australia’s measurement law.
  • Proportionality – we ensure our response fits the severity of the non-compliance.

In practical terms, we consider the:

  • nature of the non-compliance – is it an isolated incident or systemic?
  • consequence of the non-compliance – how much harm is likely?
  • compliance history of the business – is this the first time we have found non-compliance?
  • businesses efforts to comply – is the management actively involved in the solution? how effective are any quality assurance processes that are in place?
  • culpability of the business – was the non-compliance intentional, reckless or negligent?

Our approach to regulating non-compliance

A pyramid showing 4 levels of response to non-compliance.

A pyramid showing 4 levels of response to non-compliance. 

  1. Businesses who have decided not to comply are regarded as deliberate non-compliance with a high level of harm. We might refer the matter for criminal prosecution
  2. Businesses who have a notable history of non-compliance or systemic issues across products or instruments are regarded as persistent non-compliance with a medium level of harm. We might issue an infringement notice, impose licensing sanctions, or enter into an enforceable undertaking
  3. Businesses who are actively trying to comply but not yet compliant at the next audit are regarded as repeated non-compliance with a low to medium level of harm. We may issue a warning letter, a permit or an infringement notice, or enter into a compliance agreement
  4. Businesses who are non-compliant at the first audit are regarded as initial non-compliance with a low level of harm. We might issue a non-compliance notice or a notice of incorrect measuring instrument or provide education and advice.

Servicing and public weighbridge licensees

We issue licences to third parties to support our work:

  • Servicing licensees test and verify measuring instruments used for trade. They can employ verifiers and nominate them to verify instruments under their servicing licence.
  • Public weighbridge licensees measure the weight of a vehicle or its load for the public.

We will respond to non-compliance by licensees. Our response depends on the circumstances. We may:

  • send a notification or warning letter
  • formally reprimand the licensee
  • impose a condition on the licence
  • suspend the licence
  • cancel the licence
  • suspend the licensee or disqualify them from holding a licence
  • accept an enforceable undertaking from the licensee
  • make the response public.

In deciding our response, we consider whether the licensee’s conduct could facilitate clear and substantial harm within the measurement framework. We also consider whether the conduct is repeated but results in less significant harm.

What you can expect from us

Our approach to regulation is guided by the principles of the Regulatory Performance Resource Management Guide 128. 

Part of our work is to educate businesses so they know what they need to do to comply with Australia’s measurement laws. This includes:

  • responding to enquiries
  • supporting businesses to fix issues of non-compliance
  • publishing our policies and guidelines
  • publishing information about their obligations on our website or on social media platforms.

As we engage with business and consumers, we will:

  • act in accordance with the Australian Public Service values
  • listen and give businesses the opportunity to tell us their side of the story before making decisions
  • help businesses understand their responsibilities under Australia’s measurement law
  • Protect privacy and personal information in accordance with our Privacy policy.

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