Unfit to drive: why the new National Heavy Vehicle Regulator Duty is a people risk issue, not just a transport compliance issue

On 1 August 2026, the amended Heavy Vehicle National Law (HVNL) came into effect. The new Unfit to Drive duty expands the existing provisions to cover physical illness, injury, stress, mental health conditions, and the effects of alcohol or other drugs. It applies to every driver of a heavy vehicle over 4.5 tonnes, not only those operating fatigue-regulated vehicles over 12 tonnes.

This means that light-to-medium transport operators are now included and will need to ensure compliance under the HVNL. The maximum penalty for a breach also increases from $6,000 to $20,000.

This reform signals a broader shift in how driver safety risk is understood and managed. Regulators are increasingly recognising that a driver's fitness to work safely is impacted by their health, wellbeing and their work environment. It is not just a transport compliance issue. It is a people risk issue that requires organisations to take a proactive and preventative approach.

The biggest risk under the new HVNL isn't what's happening on the road, it's what's happening in your workplace, before a driver even picks up the keys.


 

Loretta Hartley, Partner Transport

A fundamental shift in risk management

Operators must now ensure their business practices do not cause or encourage a person to drive while unfit and must take reasonable steps to make sure that drivers are fit to drive before they enter the vehicle. While rostering software can help manage fatigue, it does not address the broader health, wellbeing and workplace factors that may affect whether a person is fit to drive. It requires organisations to think about physical and psychosocial health, and the organisational pressures, workload, culture, incentives and supervision, that shape whether a worker is comfortable to say "I'm not fit to drive today."

The growing importance of psychosocial risk

The inclusion of stress and mental illness in the definition of "unfit to drive" reinforces the psychosocial hazards regulations and codes of practice already in place across the country. Hazards including job demands, fatigue, poor support and poor work environment are now directly linked to transport law. This strengthens the expectation that operators proactively identify and manage psychosocial risks in the workplace.

At a minimum, organisations are required to demonstrate they have conducted a psychosocial risk assessment and are implementing risk controls that eliminate or minimise harm. Regulators attending workplaces are assessing whether the minimum standard has been reached and are examining the effectiveness of these controls.

Jerome Carslake, Director of the National Road Safety Partnership Program (NRSPP), believes the reform reflects a broader shift in how road safety is viewed:

The new HVNL Duty is arguably the most significant change to heavy vehicle safety law in a decade - and it echoes something the NRSPP has been saying since our 2023 'Are You Road Worthy' campaign: we don't return to a 'state of normal' the moment we get behind the wheel. How we're feeling and what stressors we're carrying travel with us into the vehicle and shape our experience on the road. This reform is regulatory recognition of exactly that - that safe driving starts with how an organisation manages workload, culture, and support for its people, not just what happens once someone's driving.

 

Linking safety, people risk and insurance

The NHVR has already shown their commitment to implementing change in this space well ahead of the reforms. A 2025 Category 2 prosecution resulted in a $1.2 million fine, $75,000 in costs, and a 12-month Supervisory Intervention Order that required all employees and contractors to obtain medical clearance or undergo a fitness-to-drive assessment before operating a heavy vehicle.

Beyond direct penalties, poor people risk practices can have a significant impact on an organisation’s insurance program by increasing claim frequency and severity. This may result in vehicle incidents, workers’ compensation claims, public and product liability exposures, regulatory investigation costs, and reputational damage.

Building an effective people risk framework

Transport operators who are proactively responding to these changes are implementing broader people risk frameworks that bring together HR, safety, risk, insurance and operations. These frameworks often include:

• Job task analysis and health assessments aligned to the physical, psychosocial and cognitive demands of the role
• Holistic fitness-for-work policies that cover illness, injury, and mental health
• Drug and alcohol management programs
• An integrated approach to safety and psychosocial risk with a clear prevention plan
• Critical incident response and psychological first aid capability/support
• Improved fatigue management systems that incorporate rostering and workload
• Uplifting supervisor capability to recognise the early signs of distress and have conversations with team members

Practical steps for business owners

1. Invest in prevention now - rather than waiting for a regulatory issue to arise. Liaise with our people risk team to understand how to implement a cost effective and sustainable approach that incorporates safety, psychosocial risk and insurance.
2. Review your fitness-for-work process now - don't assume your current fatigue management procedures are sufficient. Review pre-start declarations, return-to-work processes, supervisor checklists, and policies relating to illness, injury, mental health, drugs and alcohol. Ensure your procedures support the broader definition of "unfit to drive."
3. Train supervisors to identify and respond to warning signs as they are often the first line of defence. Provide training on recognising signs of fatigue, stress, mental health concerns, impairment, and behavioural changes. Just as importantly, equip them to have constructive conversations and escalate concerns appropriately.
4. Focus on culture, not just compliance. Drivers must feel comfortable speaking up when they are not fit for duty without fear of disciplinary action, loss of income, or negative consequences. A positive reporting culture can help prevent incidents before they occur and may reduce regulatory and insurance exposures.
5. Engage your insurance adviser - this legislative change reinforces the connection between transport safety, workers' compensation, liability, and risk management. Work with your broker to review whether your people risk controls, policies, and insurance program remain fit for purpose under the expanded obligations.

A comprehensive and targeted people risk framework not only reduces the chance of an incident occurring; it reduces the frequency and severity of claims when something does go wrong.

The bottom line

The NHVR's Unfit to Drive duty is more than a transport law change; it is a recognition that health, wellbeing, and psychosocial factors are inseparable from safety and operational performance. Transport operators that integrate transport safety with people risk will be better placed to protect their people, meet their compliance obligations, and mitigate the risk of financial and reputational damage.