Because ignorance isn’t a defence — and compliance starts at the top.

In Australia’s current landscape of fast-moving regulations, public scrutiny, and technology disruption, board-level compliance is no longer optional, operational, or abstract. It’s a core part of a director’s duty — and one that can’t be delegated away.

Whether you’re on the board of a logistics company, a construction firm, a childcare provider, or a community organisation, the fundamentals are the same: compliance risk is governance risk.

So what does “basic compliance” actually mean for a board?

Here’s a plain-language breakdown:

1. Know the laws that apply to your organisation

Your board must understand (and stay current on) the regulations in your industry — including:

• Transport: Chain of Responsibility (CoR), fatigue management, HVNL
• Construction: National Construction Code, licensing, WHS
• Childcare: NQF, mandatory reporting, Working With Children Checks
• Boards/Governance: Corporations Act, Director’s Duties, ASIC obligations
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Tip: Assign someone to track updates — ignorance of the law is not a defence.

2. Make compliance a standing agenda item

Boards should regularly ask:

• Are we compliant across key areas?
• Have there been any breaches, near misses, or regulator notices?
• What’s being done to proactively manage risk?

Tip: Don’t bury it in operational reports. Make it visible at the governance level.

3. Make compliance a standing agenda item

Good boards get more than tick-box dashboards. Ask for:

• Risk heat maps
• Incident trends over time
• External audits or review findings
• Key compliance KPIs aligned to strategy

Tip: If you don’t understand what’s presented, ask. Unclear reports are a red flag.

4. Build a compliance culture, not just a policy

Policies in a drawer mean nothing if staff don’t understand them or see leaders walk the talk.

Boards should ensure:

• Staff receive regular training
• Whistleblower protections are enforced
• Compliance isn’t siloed in legal—it’s embedded in operations

Tip: Culture is the best defence. It also shows up in investigations.

5. Understand your personal liability

Under many laws (e.g. CoR, WHS, Environmental Duty), directors and officers can be held personally liable for breaches if they didn’t take “reasonable steps” to prevent them.

What counts as reasonable?

• Ensuring systems are in place
• Asking questions
• Following up on concerns
• Documenting board decisions and oversight

Tip: Minutes matter. They’re your audit trail.

6. Compliance is not just about avoiding fines — it’s about building trust.

Organisations that take compliance seriously protect:

• Their staff and customers
• Their reputation
• Their long-term ability to operate

Final thought

Whether you’re a seasoned board member or newly appointed, compliance is not just a box to tick — it’s a lens through which you make every decision.

And in 2025, with rising regulatory complexity, public scrutiny, and digital risk, good governance demands confident, informed oversight.

(By Brenda Frisk, Department of Future)