Who is Responsible for the Test and Tag, the Landlord or the Tenant?

Usually, tenants are responsible for testing and tagging portable equipment, while landlords look after the building’s fixed electrical systems. Still, this can change depending on your lease agreement. If you misunderstand this, your business could become non-compliant, even if it goes unnoticed.

Key takeaways

• The business using the premises is responsible for testing and tagging portable equipment, not the building owner.
• Landlords are usually responsible for fixed electrical installations like wiring, switchboards, and fixed RCDs.
• Check your lease first. It can confirm, change, or clarify who is responsible for each part.
• Many Sydney businesses become non-compliant because they assume someone else is handling it.
• WHS responsibilities still apply, even if your lease does not mention them.

Who the law says is responsible

Under New South Wales work health and safety laws, the PCBU (person or company running the business) must test and tag portable equipment. In most commercial leases, the tenant is the PCBU, not the landlord. If you run the business, you control how the equipment is used.

SafeWork NSW says businesses must have their plug-in electrical equipment regularly inspected and tested by a qualified person. This includes any equipment your business brings in or gives to staff, like appliances, power tools, cables, and cords. This rule does not cover the building itself.

Landlords are usually responsible for fixed items like wiring, switchboards, and fixed RCDs built into the premises. This is because they own and maintain the property. These duties are separate from those for portable equipment and WHS.

Check your lease first

The law sets out who has the main duty, but it does not always say who pays for compliance each day. This is why your lease matters.

Most commercial leases include a maintenance or fit-out clause that explains these responsibilities. Usually, the landlord handles base building services, and the tenant pays for anything they bring in or install. Before assuming something is covered, check your lease and look for:

• A maintenance clause naming who's responsible for electrical safety and testing
• A fit-out schedule separating base building items from tenant-supplied equipment
• A make-good clause, which can hint at who's expected to maintain equipment throughout the lease

This question often comes up when signing a lease or during fit-out. New tenants might think appliances left by the previous business are the landlord’s responsibility, but once they start using them, those items become the tenant’s responsibility. Meanwhile, landlords may believe their duty ends once the building passes its electrical inspection.

Both sides might assume the other is handling things, and this only becomes clear during a WHS audit or after a problem happens.