Under AS/NZS 4084:2023, pallet racking and other steel storage racking systems in New Zealand must receive a formal inspection by a competent person at least once every 12 months. That is the baseline requirement, and it is not the full picture. Four distinct inspection types apply to NZ racking systems, each with its own trigger, qualified inspector standard and required output. Operations managers who rely on a single annual check, or who treat an in-house walk-through as equivalent to a formal inspection, are likely not meeting their obligations under the Health and Safety at Work Act 2015. The breakdown below sets out exactly what is required, when and by whom.
What AS/NZS 4084 and WorkSafe NZ require
AS/NZS 4084:2023 is the joint Australian and New Zealand standard for steel storage racking systems and the primary technical reference WorkSafe NZ uses when assessing whether a Person Conducting a Business or Undertaking (PCBU) has met its duty of care. The standard requires a formal racking inspection to be carried out by a competent person at intervals not exceeding 12 months. This is a minimum requirement, not a ceiling.
Section 36 of the Health and Safety at Work Act 2015 (HSWA) places a primary duty of care on every PCBU to eliminate or minimise risks to the health and safety of workers, so far as is reasonably practicable. Racking is classified as plant under HSWA, which means the duty to keep it in a safe condition applies continuously, not only at the point of the annual inspection. Regular in-house checks, triggered inspections following incidents and baseline inspections for inherited racking all form part of that ongoing obligation. For a full breakdown of PCBU duties under HSWA, the WorkSafe NZ racking obligations guide covers what the law requires of NZ employers in detail.
The four types of racking inspection
NZ racking compliance involves four distinct inspection types, each addressing a different point in the racking lifecycle and requiring a different level of qualification. Understanding the distinction between them is the starting point for meeting obligations under both AS/NZS 4084:2023 and HSWA. The four types are a formal annual inspection, regular in-house checks, triggered inspections following specific events, and a post-installation or inherited racking inspection. Each is covered below with its trigger, qualification standard and required output.
Formal annual inspection
A formal racking inspection is a structured safety assessment carried out by a competent person against the requirements of AS/NZS 4084:2023, resulting in a written report with damage classifications and recommended corrective actions. It is required at least once every 12 months for all steel storage racking systems in NZ workplaces, including pallet racking systems and cantilever racking.
The written report must classify any damage found using the three-tier system in AS/NZS 4084:2023. A green classification indicates the racking is safe to continue using. An amber classification indicates damage that requires monitoring or repair within a defined timeframe, with the racking remaining in use under conditions specified by the competent person. A red classification requires the affected section to be taken out of service immediately, before repair or replacement is completed.
The formal annual inspection cannot be carried out by general in-house staff unless they hold the knowledge, training and experience required to meet the competent person standard in AS/NZS 4084:2023 and can produce a written report meeting the standard’s documentation requirements.
Regular in-house checks
Regular in-house checks are ongoing visual assessments that warehouse staff carry out as part of routine hazard identification obligations under HSWA. They are a separate obligation from the formal annual inspection and do not substitute for it. Where a check identifies damage or a potential hazard, the appropriate response is to isolate the affected section and arrange an assessment by a competent person.
In-house checks should cover:
- Uprights and baseplates: look for deformation, bending, cracks or corrosion along the upright column and at the base where the upright meets the floor.
- Beams and connectors: check for bowing, twisting or any beam that has dislodged or partially disengaged from the upright connector.
- Load notices: confirm that load rating signage is present, legible and consistent with the loads currently stored in each bay.
- Aisle clearance: check that no obstruction restricts forklift movement within the design aisle width of the racking system.
- Impact damage: look for any fresh damage to uprights, bracing or footplates that may not have been formally reported.
Workers must have a clear, documented process for reporting damage identified during in-house checks to their supervisor or health and safety representative without delay.
Triggered inspections
Certain events require a racking inspection to be carried out immediately, outside the annual cycle. A triggered inspection must be completed by a competent person before the affected racking returns to use. Continuing to use racking after a triggering event, without a competent person’s assessment, is not consistent with the duty to maintain safe plant under Section 36 of HSWA.
Events that require an unscheduled inspection include:
- Any impact to racking from a forklift, pallet or other equipment, regardless of whether visible damage is immediately apparent.
- Discovery of deformed, buckled or cracked uprights, beams or baseplates.
- A near-miss or incident involving the racking system.
- A significant change to the loads being stored, particularly where loads approach or exceed the original design capacity of the system.
- Relocation or reconfiguration of any racking bay or run.
- Discovery of unreported damage that cannot be attributed to a known event.
When a triggering event occurs, the affected section must be taken out of service and barricaded before the competent person carries out their assessment. The racking must not return to use until the inspection is complete and the competent person confirms it is safe to do so.
Post-installation and inherited racking inspection
A baseline inspection is required when new racking is installed and when a business takes over a site with racking already in place. For new installations, the post-installation inspection confirms that the system has been built to AS/NZS 4084:2023 and establishes the condition benchmark from which future annual inspections are measured.
For inherited racking, the obligation is more pressing. A PCBU takes on full legal responsibility for racking from the moment it assumes control of the site, regardless of who installed the racking or when. Operating inherited racking of unknown history, load rating or installation standard without a baseline inspection creates direct legal exposure under Section 36 of HSWA.
The appropriate action when taking over a site with existing racking is a formal inspection by a competent person before the racking enters service. This inspection establishes the current condition of the system, identifies any immediate risks and provides the documentation a PCBU needs to demonstrate it carried out its due diligence from day one.
Who qualifies as a competent person?
A competent person, as defined in AS/NZS 4084:2023, is someone with the knowledge, training and experience to identify racking damage, classify its severity using the standard’s damage classification system and recommend corrective action in a formal written report. A general health and safety qualification or familiarity with racking systems does not automatically satisfy this standard.
In practice, a competent person can distinguish between cosmetic damage and structural compromise, apply the green, amber and red classification system accurately and specify the corrective action required for each finding. They must produce a written inspection report that meets the documentation requirements of AS/NZS 4084:2023, including findings per bay, classification outcomes and recommended actions with timeframes.
An in-house staff member conducting a visual walk-through does not meet the competent person standard unless they hold the relevant training and can produce a formal written report to that standard. PCBUs that rely on in-house checks to fulfil the formal annual inspection obligation are not meeting their requirements under AS/NZS 4084:2023 or their broader duty of care under HSWA.
What happens if racking is not inspected?
WorkSafe NZ has the authority to inspect workplaces and take enforcement action where a PCBU is not meeting its obligations under HSWA. For racking, the most immediate enforcement tool is a prohibition notice, which requires the immediate cessation of racking use where WorkSafe NZ determines the situation poses a serious risk of harm. A prohibition notice can stop warehouse operations entirely until the affected racking is assessed and remediated to a competent person’s satisfaction.
Where non-compliance is less immediately dangerous, WorkSafe NZ may issue an improvement notice, requiring the PCBU to remedy the situation by a specified date. Where a breach of HSWA has caused serious harm or death, WorkSafe NZ can prosecute. Fines for failing to comply with the primary duty of care under HSWA reach $1.5 million for a PCBU.
The operational consequence of a prohibition notice (halting all racking use until compliance is restored) is often more immediately damaging to a business than the financial penalty itself.
Records employers must keep
Inspection records are part of a PCBU’s risk management obligation under HSWA and are critical evidence in the event of a WorkSafe NZ investigation or legal proceeding. The absence of documentation does not demonstrate compliance.
Employers operating racking systems should maintain:
- Formal inspection reports from each annual inspection, including the inspector’s name, qualifications, findings, damage classifications and recommended actions.
- A damage log covering each incident, the date it was identified, how it was reported and the corrective action taken.
- Repair and modification records, including who carried out the work and to what standard it was completed.
- Load rating notices for each racking bay, including rated capacity and the date they were installed or updated.
- Training records for workers who use or work around racking systems.
- Any correspondence with WorkSafe NZ, including improvement notices, prohibition notices and written responses.
Records should be retained for at least the operational life of the racking system.
How Storepro’s racking inspection service works
Storepro carries out formal racking inspections against AS/NZS 4084:2023 for warehouses and distribution centres across New Zealand. With more than 20 years of experience and a combined team expertise exceeding 250 years, Storepro produces a written inspection report covering all findings, damage classifications and recommended actions, giving PCBUs the documented compliance evidence their obligations require.
Each inspection covers all racking bays within the site, assesses damage against the three-tier classification system and specifies corrective action for any amber or red findings. Where repairs are required, Storepro can complete these directly as part of its racking maintenance and installation service, reducing the time between inspection and return to full compliance.Are you due for a racking annual inspection, has your racking sustained impact damage or inherited a pallet racking system from a previous site occupant? Book a racking inspection service or speak with a specialist about your site requirements.