Product Overview

Summary: This SOP sets out a structured, annual audit process specifically for Australian scrap metal facilities, with a strong focus on WHS, environmental and regulatory compliance. It provides a clear framework for planning, conducting, recording and following up audits so you can identify risks early, close gaps quickly and demonstrate due diligence to regulators and clients.

Scrap metal facilities operate in a complex risk environment, combining heavy plant, mobile equipment, hazardous substances, noise, traffic management and environmental obligations. This Annual Audit Procedures SOP provides a structured, repeatable approach to reviewing your operations against Australian WHS legislation, environmental requirements and internal policies. It guides you through planning your audit program, conducting systematic inspections, interviewing workers, reviewing documentation and recording non-conformances in a way that stands up to regulatory and client scrutiny.

By implementing this SOP, your business can move from reactive problem-solving to proactive risk management. The procedure helps you uncover latent hazards, ineffective controls and gaps in training, maintenance or housekeeping before they result in injuries, environmental incidents or enforcement action. It also standardises how audits are performed across multiple yards or sites, ensuring consistent expectations, comparable results and a clear trail of evidence for management review. This is particularly valuable for operators seeking to align with recognised management system standards or to demonstrate robust governance to insurers, customers and regulators.

The SOP is written with the realities of Australian scrap metal operations in mind – from yard layout and traffic flow to segregation of materials, fire risk in stockpiles and control of airborne contaminants. It embeds a continuous improvement cycle, ensuring that audit findings translate into practical corrective actions, responsible persons, deadlines and follow-up verification rather than sitting in a file. The result is a safer, more compliant and more efficient facility with clear accountability at every level.

Key Benefits

• Ensure a consistent, defensible annual WHS and compliance audit process across all scrap metal facilities.
• Reduce the likelihood of serious incidents, regulatory notices and environmental breaches through early identification of hazards and gaps.
• Streamline audit planning, execution, reporting and follow-up so that findings translate into real corrective actions and improvements.
• Demonstrate due diligence to SafeWork regulators, the EPA, insurers and major clients with clear records and documented processes.
• Support alignment with integrated management systems (safety, environment and quality), improving governance and business reputation.

Who is this for?

• Scrap Yard Managers
• Facility Operations Managers
• WHS Managers
• Compliance and Risk Managers
• Environmental Managers
• Quality and Systems Coordinators
• Health and Safety Representatives (HSRs)
• Business Owners in Metal Recycling
• Maintenance Supervisors
• Corporate Governance and Audit Teams

Hazards Addressed

• Mobile plant and vehicle interactions with pedestrians in yards and loading areas
• Crushing, shearing and entanglement risks from balers, shears, conveyors and other fixed plant
• Manual handling and musculoskeletal injuries from handling scrap and equipment
• Noise exposure from machinery, cutting, shredding and vehicle movements
• Fire and explosion risks from fuel residues, gas cylinders, batteries and combustible stockpiles
• Exposure to hazardous substances such as oils, fuels, coolants, lead, asbestos-containing materials and other contaminants in scrap
• Poor housekeeping leading to slips, trips and falls on uneven, cluttered or contaminated surfaces
• Inadequate traffic management, signage and segregation of work areas
• Electrical hazards from temporary power, damaged leads, and plant not properly isolated
• Environmental hazards including spills, stormwater contamination, dust and uncontrolled discharge of pollutants

Included Sections

• 1.0 Purpose and Scope
• 2.0 Definitions and Terminology
• 3.0 Regulatory and Standards Framework
• 4.0 Roles, Responsibilities and Competency Requirements
• 5.0 Annual Audit Program Planning and Scheduling
• 6.0 Pre-Audit Preparation and Document Review
• 7.0 Audit Methodology (Interviews, Inspections and Sampling)
• 8.0 Scrap Yard Layout, Traffic Management and Pedestrian Safety Checks
• 9.0 Plant, Equipment and Maintenance Compliance Review
• 10.0 Hazardous Substances, Batteries and Dangerous Goods Controls
• 11.0 Housekeeping, Storage and Stockpile Management Assessment
• 12.0 Environmental Compliance (Spill Control, Stormwater, Dust and Noise)
• 13.0 Worker Consultation, Training and Competency Verification
• 14.0 PPE, Signage and Work Environment Requirements
• 15.0 Documentation, Records and Evidence Collection
• 16.0 Non-Conformances, Corrective Actions and Risk Ranking
• 17.0 Audit Reporting, Communication and Management Review
• 18.0 Follow-Up Audits, Verification and Close-Out of Actions
• 19.0 Continuous Improvement and Lessons Learned
• 20.0 Audit Tools, Checklists and Templates (Appendices)

Legislation & References

• Work Health and Safety Act 2011 (Cth) and equivalent state and territory WHS Acts
• Work Health and Safety Regulations 2011 and corresponding state and territory regulations
• Safe Work Australia – How to Manage Work Health and Safety Risks: Code of Practice
• Safe Work Australia – Managing Risks of Plant in the Workplace: Code of Practice
• Safe Work Australia – Managing the Work Environment and Facilities: Code of Practice
• Safe Work Australia – Hazardous Manual Tasks: Code of Practice
• AS/NZS ISO 45001:2018 Occupational health and safety management systems
• AS/NZS ISO 14001:2016 Environmental management systems
• AS/NZS ISO 9001:2016 Quality management systems – Requirements
• Relevant state and territory Environmental Protection Acts and associated regulations for waste and recycling facilities