What to Do When Equipment Fails Its Test and Tag

At some point, every workplace will deal with a piece of equipment that fails its test and tag. When this happens, many Sydney business owners ask themselves if they can still use it, who decides what to do, and what steps to take next.

Knowing exactly how to handle failed test and tag equipment isn't just good practice. Under the Work Health and Safety Act 2011 (NSW), it's part of your legal obligation to maintain a safe workplace.

Key takeaways

• Any item that fails its test and tag must be immediately removed from service, no exceptions.
• A failed tag does not always mean the item is no longer useful. In many cases, you can repair it, get it re-tested, and use it again.
• Keeping clear records of failed items is important for WHS compliance and can protect you if there is ever an investigation.
• Your test and tag provider should support you through the process, not just hand over a report and leave.

Step 1: Remove it from service immediately

Once an item fails, you cannot use it. This is not just a suggestion. AS/NZS 3760:2022, the Australian Standard for safety inspection and testing of electrical equipment, requires it. The failed item must be clearly marked as out of service and kept separate from safe equipment.

This matters more than most people realise.

Leaving a failed appliance plugged in, even briefly, is a real risk. If someone gets hurt using equipment that has already been marked unsafe, the business owner could face serious legal and financial trouble.

SafeWork NSW is clear on this point: employers must not allow workers to use electrical equipment that is known to be defective or has not passed the required safety inspection.

Step 2: Understand why your equipment failed its test and tag

Not every failure is the same. A qualified tester will find out why the item failed, and that will guide your next steps. Common reasons for failing a test and tag include:

• Insulation resistance failure

  This often happens because of age, heat, or moisture. It may mean the item needs professional repair or replacement.

• Earth continuity failure

  A break in the earth wire can make the item dangerous to touch if there is a fault. Sometimes, fixing the cord is enough to solve the problem.

• Physical damage

  Frayed cords, cracked casings, or damaged plugs are visible faults that must be fixed before re-testing.

• Excess leakage current

  According to AS/NZS 3760:2022, if an appliance is found to have excess leakage current during inspection or testing, it often indicates the equipment may be unsafe for further use, especially in older or heavily used items.

Knowing why an item failed helps business owners decide whether to repair or retire the equipment to keep the workplace safe.

Step 3: Repair, replace, or retire your equipment

Once you know why an item failed, you have three options:

• Repair and re-test. If the problem is simple, like a damaged cord, a loose plug, or a part that can be fixed, a licensed electrician can repair it. The item must then be retested and re-tagged before you use it again. The re-test is required.
• Replace the item. If repairs cost more than the item is worth, or if the problem is serious, it is usually best to replace it. New equipment should also be tested before its first use, especially in high-risk areas.
• Retire the item. Some equipment is just too old or unreliable to keep using. Holding on to something that keeps failing, even if it sometimes passes, only increases risk and cost.

Step 4: Record everything

Many businesses miss this step. For every failed item, you need to record the fault type and what happened next (repaired, replaced, or retired) in your electrical equipment register. This documentation shows you have done your due diligence if SafeWork NSW audits your workplace or if you need to make an insurance claim.

Your test and tag provider should give you a detailed report with all this information. If they do not, ask them about it.

How Test and Tag Sydney Wide Ltd. makes this easier

At Test and Tag Sydney Wide Ltd., we do more than just test your equipment and hand you a report. If something fails, our technicians explain what they found, what it means, and your options in clear, simple language. We record every result in a complete equipment register, so your records are always ready for an audit.

We serve all areas of Sydney, work around your business hours to avoid disruption, and send reminders when it is time to re-test. Whether you need one item checked after a repair or a full site inspection, we are ready to help.