Understanding Australian Standards for Dangerous Goods Storage and Bunding

In any industrial, warehouse or maintenance environment, the safe storage of hazardous materials is both a legal and operational necessity. Flammable liquids, corrosive substances and compressed gases must all be handled in line with strict Australian Standards that protect people, property and the environment.

Understanding these standards and how they apply to your business is essential for maintaining compliance, avoiding costly fines and ensuring that every part of your operation runs safely.

This guide outlines the key standards such as AS1940, explains the Australian standard bunding requirements, and shows how compliant dangerous goods storage and bunding and spill containment systems from Containit support workplace safety.

Introduction: Why Dangerous Goods Compliance Matters

Storing dangerous goods incorrectly can result in serious incidents such as fires, chemical spills, environmental contamination or injury. Beyond these immediate risks, non-compliance may trigger WorkSafe or EPA investigations, lead to fines or even invalidate insurance coverage.

Compliance ensures that every hazardous substance is contained, labelled and segregated according to its risk profile. Several standards govern how fuels, gases and chemicals must be stored, including:

• AS1940-2017: Storage and handling of flammable and combustible liquids.
  

• AS4332-2004: Storage and handling of gases in cylinders.
  

• AS3780-2008: Storage and handling of corrosive substances.
  

• AS/NZS 3833-2007: Storage and handling of mixed classes of dangerous goods.

These frameworks work together to guide safe handling across industries. Partnering with an experienced supplier such as Containit helps ensure that every solution, from cabinets to bunded pallets, aligns with the correct standards and your specific site conditions.

What Are Dangerous Goods?

Under the Australian Dangerous Goods (ADG) Code, dangerous goods are defined as substances or articles that can harm people, property or the environment if not managed correctly. They are grouped into nine hazard classes.

Common examples include:

• Class 2 – Gases: LPG, oxygen, argon, acetylene and aerosol cans.
  

• Class 3 – Flammable liquids: petrol, solvents, paints and thinners.
  

• Class 8 – Corrosive substances: acids, alkalis and cleaning agents.
  

Understanding which class your materials fall into is the first step in selecting the correct storage system. For example, AS1940 applies to flammable and combustible liquids, while AS4332 covers gases. Each standard specifies requirements for design, ventilation, signage and emergency procedures.

Failure to identify the correct classification can lead to incompatible substances being stored together, significantly increasing the risk of reaction or fire.

What is AS1940?

AS1940:2017 or The Storage and Handling of Flammable and Combustible Liquids, is one of the most widely applied standards in industrial settings. It provides comprehensive guidance on the design, construction and operation of facilities where fuels, solvents and other combustible materials are stored.

Key AS1940 compliance areas include:

• Separation distances: Maintain safe distances from ignition sources, drains and boundaries.
  

• Bunding and spill containment: Required for areas storing liquids to capture any leaks.
  

• Ventilation: Adequate airflow to disperse flammable vapours and reduce explosion risk.
  

• Fire protection: Inclusion of extinguishers, signage and emergency response plans.
  

• Training and documentation: Staff must be trained in emergency procedures and spill management.

For many businesses, meeting the Australian standards for fuel storage begins with evaluating existing storage, such as 205L  drums, IBCs or tanks, to confirm whether they meet AS1940 design and construction guidelines.

Containit’s range of compliant bunding and spill containment products helps organisations stay aligned with AS1940 while protecting workers and the environment.

Australian Standard Bunding Requirements

Bunding is one of the most important control measures in DG storage. It prevents spills and leaks from spreading and causing environmental contamination.

According to Australian standard bunding requirements, bunds must:

• Have a sump capacity of at least 110% of the largest container or 25% of the total volume stored, whichever is greater.
  

• Be made from materials resistant to the stored liquid.
  

• Prevent stormwater ingress that could cause overflow or contamination.
  

• Include regular inspections for integrity and capacity.

Containit offers IBC bunding and steel bunding systems designed to meet these standards and simplify ongoing compliance management.

Fuel Storage to Australian Standards

Fuel storage must comply with AS1940, which details construction, ventilation and fire safety requirements. For bulk fuel or flammable liquid storage, facilities must ensure:

• Tanks and containers are protected from impact and ignition.
  

• Spill containment systems are correctly sized and positioned.
  

• Adequate ventilation and drainage are provided.
  

• Fire extinguishers, signage and emergency equipment are accessible.

Using bunding and spill containment helps manage fuel storage risks effectively while maintaining compliance.

Australian Standard for Hazardous Chemical Storage

When storing chemicals, especially mixed classes, a full Dangerous Goods audit should be conducted. This ensures compliance with the Australian Standard for hazardous chemical storage and helps identify where risks exist.

Key actions include:

• Updating risk assessments and SDS registers

• Reviewing site layout and ensuring separation between incompatible goods

• Consulting a DG specialist or compliance consultant

• Engaging a trusted partner like Containit to supply certified storage equipment

These steps ensure new installations improve safety rather than introducing new hazards.

Gas Storage Tips

• LPG can be stored with acetylene but not oxygen. 

• Argon shields can be stored with either oxygen or acetylene or LPG. 

• Inert (nonreactive) gases can be stored with pretty much any gas. An example of an inert gas is Argon. 

• Flammable gases can’t be stored with oxygen and must be stored at least 3m apart. Some examples of flammable gases are LPG or acetylene. 

• Oxygen and Acetylene must be stored separately and at least 3m apart. 

• The only time oxygen and acetylene can be stored together is a maximum of 1 of each bottle when in use as an oxy kit. 

• Ensure your gas storage is in an area with good air flow. 

• Ensure your gas store is protected from other potential hazards, such as forklifts and trucks. 

• Ensure your gas bottles are secured to prevent unauthorised access. 

• Remember to review your site risk assessment council conditions and any specific WorkCover requirements for your site.

Dangerous Goods Storage Tips

• Ensure you don’t store incompatible goods together, e.g. Class 3 flammable liquids and Class 8 corrosive substances. 

• Ensure your dangerous goods storage is in an area with good air flow. 

• Just because you’re storing your dangerous goods in an Australian standards-style cabinet doesn’t mean you are meeting Australian standards! There are other factors to keep in mind, such as maximum storage per floor area. 

• Ensure your dangerous goods are secured to prevent unauthorised access.

• Remember to review your site risk assessment council conditions or specific WorkCover requirements for your site.

Bunding Storage Tips

• Your bund must have a sump capacity of your largest container of your total aggregate storage – whichever is greater. 

• If you’re storing liquids outside without a cover when it rains, your bund will fill up with water, which will render your bund ineffective. 

• Ensure that the bund you’re storing your chemicals in is compatible, e.g. don’t store acid in a standard metal bund. 

• Ensure you don’t store incompatible goods together, e.g. Class 3 flammable liquids and  Class 8 corrosive substances. 

• Remember to review your site risk assessment council conditions and any specific WorkCover requirements for your site.

Implementing a Holistic Dangerous Goods Compliance Strategy

True compliance goes beyond installing cabinets or bunds – it’s about creating a culture of safety. Implement a routine review cycle that covers training, record-keeping and equipment maintenance.

A holistic approach includes:

• Documenting all hazardous goods and quantities.
  

• Regularly reviewing your Dangerous Goods Manifest.
  

• Scheduling inspections of bunds, tanks and storage areas.
  

• Keeping spill response kits stocked and accessible.
  

• Providing staff with refresher training on emergency procedures.

Regulatory compliance is critical for every business handling hazardous materials. From AS1940 to the Australian standards for fuel storage, each regulation ensures that people, property and the environment remain protected.

Containit helps businesses across Australia achieve that standard with confidence. Our proven, compliant systems, including dangerous goods storage, bunding and spill containment and IBC bunding, are all designed for strength, longevity and peace of mind.