A dramatic rise in locally produced spirits has seen the number of distillers in South Australia grow tenfold in the past decade. There are now more than 100 distillers making gin, whiskey, vodka and rum in SA. Distilleries produce and store highly flammable liquids including ethanol and can be dangerous work environments with risks associated with explosive atmospheres, confined spaces, pressure vessels, electrical safety, chemical and cylinder storage and pallet racking.
Hazards
Safety requirements
Licence requirements
Storage requirements
Contact us
Further information
Hazards
A man was seriously injured following an explosion at a Tasmanian distillery in 2021. The explosion and subsequent fire caused about $2 million damage and was sparked when the man was mixing flammable liquids in the gin distilling section of the facility.
Under the Work Health and Safety Act 2012 (SA), Persons Conducting a Business or Undertaking (PCBUs) have a duty of care to provide a safe workplace and systems of work, information, instruction and training. Additionally, they must give workers an opportunity to consult about work health and safety, whilst being responsible for identifying hazards, assessing risks and managing the hazards also.
The Dangerous Substances (General) Regulations 2017 also sets out legal duties for occupiers of premises where dangerous goods are stored or handled. See our chemicals and substances page for further information.

Safety requirements
Risk of fire and explosion
Eliminate or reduce the risk of fires and explosions through building design, equipment selection and safe operating procedures (SOP) including:
- ensure electrical equipment in the area where the potable spirits are produced, stored and handled is suitable for hazardous areas as described in AS/NZS 60079.10.1:2009 Explosives Atmospheres Classification of Areas – Explosive Gas Atmospheres
- clearly identify and enforce hot work and smoking restriction zones, including zones restricting mechanical grinding, cutting, other ignition sources
- ensure hot work on or near a tank that contains or did contain ethanol is avoided until the tank is cleaned free and certified to be less than 5 per cent of the lower explosive limit (LEL) of the vapour from potable spirits (ethanol has LEL 3.3 % volume) when sampled at ambient temperature
- store flammable liquids in fit for purpose, numbered, and appropriately labelled containers.
- store incompatible chemicals, for example, Class 8 Corrosives, in different locations
- placard the store with Class 3 diamond if:
- the flammable liquids are 24 % to 70 % alcohol by volume and the quantities exceed 1000 L
- the flammable liquids are more than 70 % alcohol by volume and the quantities exceed 250 L
- clearly and correctly label containers
- maintain adequate natural cross flow ventilation in buildings that involve storage or processing of flammable liquids
- ensure the area around storage and processing is kept free of materials that burn
- remove flammable or toxic materials before work is carried out on an empty container
- ensure transferring of flammable liquids from storage to the point of use is carried out to avoid spillage by using fixed pipework and tank overfill prevention
- provide and maintain fire safety equipment as per Section 11 of AS 1940:2017 The Storage and Handling of Flammable and Combustible Liquids. Equipment includes alarm systems, fire extinguishers, hydrants, hoses and fire blankets.
Risk of slips, trips and falls at the same level
Distilleries contain and use large amounts of various liquids in production and can produce slippery surfaces.
Common slip and trip hazards often arise from:
- the type and stability of the floor or ground surfaces such as uneven or broken concrete and sloping ground
- slippery floor surfaces caused by water, fluid spillage and oil
- equipment, boxes and materials blocking walkways
- stairs or steps
- carrying things that obscure the view ahead
- poor lighting
- inadequate or improper footwear
- incorrect use of ladders
- falling or moving objects
- distraction.
PCBUs and workers should refer to our Slips, trips and falls page for more information.
Licence requirements
The Approved Code of Practice: Managing risks of hazardous chemicals in the workplace is a useful guide to help you understand how you might demonstrate your compliance with workplace health and safety responsibilities.
In addition to the requirements of the WHS regulations, some classes of dangerous goods need to be licensed when stored.
For distilleries and wineries, you may need a Dangerous Substances Licence if:
- you keep flammable liquids not intended for human consumption, such as,
- non-consumptive concessional spirit
- denatured spirit
- alcohol for industrial, medical, research use, etc. and
- you store flammable liquids in quantities exceeding thresholds set out in the Dangerous Substances (General) Regulations 2017 (for example, over 120 L of Packing Group I or II substances, or over 1200 L of Packing Group III substances), require a licence to keep a dangerous substance.
Applications for a Dangerous Substances Licence can be submitted via the online form available on the SafeWork SA website.
To obtain a licence, the business must demonstrate an ability to comply with the requirements of the Australian Standard AS1940 The storage and handling of flammable liquids.
What if I am storing flammable liquids (Class 3 Dangerous substances) that are potable and intended for human consumption?
If you are storing flammable liquids such as spirits, liqueurs, or pre-mixed spirit-based drinks, you may not require a licence if:
- you hold an excise licence to manufacture, produce, or store excisable goods (e.g. spirits, liqueurs, pre-mixed drinks)
- you manufacture products subject to the Wine Equalisation Tax (WET) (e.g. grape wine, fruit wines, cider, mead, sake)
- you hold a concessional spirit permit.
Storage requirements
For hazardous chemicals stored in a workplace, you must comply with the requirements set out in Chapter 7—Hazardous Chemicals of the Work Health and Safety Regulations 2012, irrespective of whether a dangerous substance licence is required, which includes things like:
- correct labelling of all hazardous chemicals
- access to Safety Data Sheets (SDS)
- maintaining a hazardous chemicals register and a manifest (if applicable depending on quantities)
- placarding requirements
- identifying hazardous zones and eliminating ignition sources
- spill containment and management
- fire protection and firefighting equipment
- emergency planning
- hazard identification and risk control
For the bulk storage and handling of potable spirits (flammable liquids) with more than 24 per cent but not more than 60 % alcohol by volume, refer to Bulk of the Australian Standard AS 1940:2017 The Storage and Handling of Flammable and Combustible Liquid.
For the bulk storage and handling of potable spirits, (flammable liquids), with more than 70 per cent alcohol by volume and in quantities greater than 60,000 L, refer to the main body of AS 1940:2017, in particular, Section 5 related to storage in tanks.
Contact us
Visit: safework.sa.gov.au
Call: SafeWork on 1300 365 255
Email: help.safework@sa.gov.au
Further information
SafeWork SA
Resources
Legislation
Australian Standards
- AS 1940:2017: The Storage and Handling of Flammable and Combustible Liquid
- AS 60079: Explosive atmospheres, Part 10.1: Classification of areas – Explosive Gas atmospheres
Codes of Practice
- Managing risks of hazardous chemicals in the workplace
- Managing electrical risks in the workplace
- Hazardous manual tasks
- Managing psychosocial hazards at work
- How to manage work health and safety risks
- Managing noise and preventing hearing loss at work
