Dangerous Goods: Terminology, Compliance, & Why It Matters
Published: April 16, 2025 | Last Updated: April 16, 2025
Dangerous goods are substances or articles that pose immediate risks to health, safety, property, or the environment—especially when transported. From petrol and industrial gases to lithium batteries and medical waste, these materials are tightly regulated across all stages of their movement and storage.
Understanding the rules and regulations governing these dangerous and hazardous materials is critical for compliance, safety, and overall business efficiency.
In this comprehensive guide, we cover Australian and global regulations, official definitions, classification, labelling, and why it all matters.
Table of Contents:
Dangerous & Hazardous Goods Terminology
Dangerous Goods Class Subdivisions
Dangerous Goods Packing Groups
How Dangerous Goods Compliance Works in Practice
How Dangerous Goods Are Regulated
Why Dangerous Goods Compliance Matters
Dangerous & Hazardous Goods Terminology
Dangerous goods, hazardous substances, chemicals, and/or materials – These terms are often mixed, matched, and used interchangeably. However, they carry different meanings depending on the country and regulatory context.
Dangerous Goods
ⓘUsed to refer to dangerous substances in the transport industry
Dangerous goods are substances that are flammable, toxic, infectious, corrosive, explosive, radioactive, or otherwise pose an immediate risk to people, property, or the environment. In Australia, they are formally classified under the Australian Dangerous Goods (ADG) Code, developed by the National Transport Commission (NTC).
The ADG Code aligns with the United Nations’ internationally recognised classification system, which categorises dangerous goods into nine hazard classes. While the core structure is consistent with global standards, the ADG Code includes national adaptations for transport conditions within Australia.
These regulations primarily focus on transport-related hazards—ensuring substances are packaged, labelled, and moved in a way that minimises the risk of accidents in transit.
Hazardous Materials (HAZMAT)
ⓘUsed in some areas instead of “dangerous goods”. They mean the same thing in most cases.
While not an official regulatory term in Australia, “hazardous materials” (often shortened to “HAZMAT”) is commonly used in a general sense and in international contexts—particularly in the United States, where it is a formal regulatory term used by the Federal Motor Carrier Safety Administration (FMCSA).
It typically refers to any substance that poses a risk to health, safety, or the environment, especially during emergencies like chemical spills or fires.
Globally, the term “hazardous materials” is often associated with emergency response and transport regulations, and is broadly aligned with the concepts covered by both dangerous goods (for transport) and hazardous substances (for health and safety). In Australia, this term may appear in training, emergency planning, and first response by organisations such as the Department of Fire and Emergency Services (DFES).
Hazardous Chemicals
ⓘUsed to refer to health and safety in the workplace
In most of Australia, hazardous chemicals are regulated under the Model Work Health and Safety (WHS) Regulations, which are based on the Globally Harmonized System of Classification and Labelling of Chemicals (GHS) developed by the United Nations.
These chemicals are classified according to both health hazards (e.g. toxicity, carcinogenicity, skin and respiratory irritation) and physical hazards (e.g. flammability, explosiveness, corrosiveness). Some hazardous chemicals pose both types of risk.
The focus of WHS regulations is workplace safety. Any hazardous chemicals used or handled on-site must be correctly identified, labelled, and supported by an up-to-date Safety Data Sheet (SDS). Employers are responsible for managing risks through proper storage, training, and protective equipment.
Hazardous Substances
ⓘSimilar to “hazardous chemicals”, but less widely used and governed under a different body
In Victoria, chemical safety is governed under the Occupational Health and Safety Regulations 2017, which use the older term hazardous substances instead of hazardous chemicals. This framework predates the harmonised WHS model and is based on now-superseded national standards.
Hazardous substances are defined primarily by their health risks—such as toxicity, mutagenicity, and long-term effects like cancer or organ damage. Unlike hazardous chemicals under WHS, physical hazards (e.g. flammability or reactivity) are not part of the classification scope.
While the core safety principles remain similar—like requiring labels, proper handling, and SDSs—the terminology and legal obligations differ slightly between states.
ⓘThe bottom line: The terms “dangerous goods” and “hazardous materials” (“HAZMAT”) mean the same thing in the context of transport. The term “hazardous materials” can also be used as a more broad term that spans industries outside of transport, such as emergency response. The terms “hazardous substances” and “hazardous chemicals” relate to health and safety regulations in the workplace, and while similar, slightly different under separate governing bodies.
Understanding these distinctions in terminology is essential for ensuring both compliance and effective communication across borders, industries, and contexts.
The 9 Dangerous Goods Classes
The Australian Dangerous Goods (ADG) Code defines 9 dangerous goods classes as follows:
- Class 1: Explosives: Class 1 includes materials designed to explode or rapidly release gas, heat, or pressure. This covers everything from fireworks and flares to blasting caps and military explosives. Even small devices like ammunition are included if they pose a risk during transport. These goods require strict handling and packaging standards due to the potential for catastrophic chain reactions if triggered.
- Class 2: Gases: This class covers gases that are flammable, toxic, under high pressure, or can displace oxygen. Examples include propane, oxygen, helium, and aerosol cans. The risks vary—some ignite easily, others are suffocants, and some can explode under heat or pressure. Classification depends not only on chemical properties but also how the gas behaves under temperature and pressure during transport.
- Class 3: Flammable Liquids: Liquids that emit flammable vapours below 60°C fall under Class 3. Petrol, acetone, and ethanol are common examples. These liquids pose serious ignition risks, especially in warm climates where vapour buildup can occur. Safe transport relies on sealed, fire-resistant containers and careful temperature control.
- Class 4: Flammable Solids and Reactive Substances: Class 4 includes solids that catch fire easily or react dangerously with air or water. Some ignite from friction, others—like white phosphorus—ignite just from air exposure. Certain substances, like sodium, react with water to release flammable gas. These goods need dry, airtight packaging and extra care during wet weather or high humidity.
- Class 5: Oxidising Substances and Organic Peroxides: These materials don’t burn themselves but feed fire or decompose dangerously. Oxidisers like ammonium nitrate intensify combustion, while organic peroxides can explode if heated or contaminated. They require isolation from fuels and, often, refrigerated transport to stay stable.
- Class 6: Toxic and Infectious Substances: Class 6 covers substances that can poison or infect humans. Toxic chemicals like cyanides or pesticides are dangerous even in small amounts. Infectious materials, such as medical samples or clinical waste, can spread disease. These need secure, leak-proof containers and strict handling protocols to avoid exposure.
- Class 7: Radioactive Materials: Radioactive goods emit ionising radiation and are used in medicine, mining, and industry. Safe transport requires shielding, clear vehicle labelling, and trained drivers. Limits are placed on how much radiation can be present during transport to protect both people and the environment.
- Class 8: Corrosive Substances: Corrosives damage skin, metals, or infrastructure on contact. Common examples include battery acid, caustic soda, and hydrochloric acid. These goods demand strong, leak-proof containers and often need separation from other materials to prevent dangerous reactions or spills.
- Class 9: Miscellaneous Dangerous Goods: This class includes hazardous materials that don’t fit into the other eight. Lithium batteries, dry ice, and asbestos all fall here. While their hazards vary—fire, suffocation, or environmental harm—they share one thing in common: they require tailored precautions to transport safely.
Dangerous Goods Class Subdivisions
Some dangerous goods classes are further broken down into divisions to reflect specific types of risk. These divisions provide a more detailed understanding of the hazard involved—such as whether a substance is flammable, toxic, or prone to explosion—and influence how the material must be packaged, labelled, and handled.
For example, explosives in Class 1 are divided into categories based on the severity of the blast risk. Likewise, gases in Class 2 are separated into flammable, non-flammable, and toxic divisions. Other classes with divisions include flammable solids, oxidisers, and toxic or infectious substances.
These distinctions help ensure dangerous goods are managed according to their exact properties. Applying the correct division supports safe segregation, emergency response, and regulatory compliance throughout the transport process.
Dangerous Goods Packing Groups
For certain classes of dangerous goods, a Packing Group is also assigned to reflect the degree of danger. There are three levels: Packing Group I for high danger, Packing Group II for moderate danger, and Packing Group III for low danger.
The assigned group determines the minimum packaging standards required, with stricter performance and durability measures for higher-risk goods. It also affects documentation, labelling, and quantity limits—especially in air freight, where restrictions are more stringent.
Selecting the correct Packing Group is critical. It ensures the packaging aligns with the substance’s hazard profile and supports safe handling throughout the supply chain. Deliberately under-declaring a Packing Group to cut costs is both dangerous and a breach of compliance.
UN Numbers and Labelling
Every dangerous good has a four-digit UN number (e.g. UN 1203 for petrol). These numbers must be shown on transport documents, packages, and placards. Labels must match the class and be prominently displayed on all outer packaging. Additional labels (e.g. “Cargo Aircraft Only”, “Cryogenic Liquid”) are required for air freight under CASA and IATA rules.
UN numbers provide international standardisation that transcends language barriers, allowing emergency responders worldwide to identify substances quickly. Electronic shipping systems now often incorporate UN numbers into tracking systems, providing real-time dangerous goods information throughout the transport chain.
How Dangerous Goods Compliance Works in Practice
In practice, every dangerous good must be assigned a class (and sometimes a division), a UN number, and—if applicable—a Packing Group. This determines how it must be packaged, labelled, transported, and documented.
For example, a shipment of petrol is Class 3, UN 1203, and Packing Group II. This tells shippers to use flammable liquid labels, follow Class 3 documentation rules, and use intermediate-level packaging. Similarly, a toxic gas like chlorine (Class 2.3, UN 1017) requires special hazard labels and handling restrictions.
These layers—class, division, PG, UN number, and label—combine to create a complete picture of how a material should be treated in transit. They’re essential not only for compliance, but for protecting transport workers, first responders, and the public in case of an emergency.
How Dangerous Goods Are Regulated
While the UN establishes the global classification system, Australia applies it through several regulatory frameworks, creating a comprehensive safety net that protects workers, communities, and the environment. Each framework has specific requirements that businesses must understand to ensure compliance:
- Road and Rail: Regulated by the Australian Dangerous Goods Code (ADG Code), administered by the National Transport Commission (NTC) and enforced by state and territory authorities. This framework provides specific requirements for vehicle placarding, driver training, and documentation for ground transportation.
- Air Freight: Overseen by the Civil Aviation Safety Authority (CASA), which aligns with ICAO and IATA Dangerous Goods Regulations. Air transport of dangerous goods involves particularly strict controls due to the high-risk environment, with many substances either prohibited entirely or limited to cargo aircraft only.
- Sea Freight: Governed by the International Maritime Dangerous Goods (IMDG) Code, adopted in Australia through the Australian Maritime Safety Authority (AMSA). Maritime regulations include specific stowage requirements and segregation rules to prevent dangerous interactions between incompatible materials.
- Workplace Chemicals: Hazardous substances are managed by Safe Work Australia using the Globally Harmonised System (GHS 7) for labelling and worker protection. This system focuses on workplace exposure and handling rather than transport risks.
Freight carriers moving dangerous goods must hold appropriate licensing and follow mode-specific requirements for labelling, documentation, packaging, vehicle placarding, and staff training. Non-compliance can result in substantial penalties, including fines exceeding $500,000 for corporations and potential imprisonment for responsible individuals in cases of serious negligence.
Why Dangerous Goods Compliance Matters
Dangerous goods present inherent risks to human health, infrastructure, and the environment. To manage these risks, the Australian Dangerous Goods (ADG) Code sets out strict requirements governing how such materials are classified, packaged, labelled, documented, stored, and transported.
Compliance with these requirements is fundamental to ensuring that dangerous goods are safely and efficiently moved through the supply chain. Accurate classification allows for appropriate handling protocols and ensures that emergency responders have the information they need to act quickly and effectively. Approved packaging minimises the likelihood of leaks, spills, or reactions in transit, while clear labelling and placarding provide essential hazard identification at every stage of the journey.
Proper documentation supports traceability and transparency, reducing delays and facilitating regulatory checks. For certain classes, trained and licensed personnel are also required to manage specialised hazards or respond to incidents. Storage and segregation practices—such as keeping incompatible goods apart or maintaining specific temperature ranges—further reduce the potential for adverse events.
Ultimately, dangerous goods compliance is not only a legal obligation but a critical element of operational integrity. It supports workplace safety, reduces liability, ensures continuity of service, and protects the broader community. Non-compliance can result in significant penalties, insurance complications, and—most critically—preventable harm to people and the environment.
Final Thoughts
Handling or moving dangerous goods—whether daily or infrequently—comes with legal obligations and safety risks. Misclassification, incorrect labelling, or use of non-certified carriers can result in fines, rejected shipments, and even serious accidents.
Businesses must ensure:
- Correct classification and UN numbers
- Identification of Packing Group where relevant
- Use of DG-certified freight providers
- Compliance with labelling, packaging, and documentation rules for the relevant mode
Investing in proper dangerous goods management creates tangible business benefits beyond regulatory compliance. It reduces insurance premiums, prevents costly incidents, protects company reputation, and demonstrates corporate responsibility. Many companies now find that robust dangerous goods handling protocols give them a competitive advantage when bidding for contracts with safety-conscious clients.
With the right knowledge and partners, dangerous goods can be managed safely and legally from end to end, turning a potential business risk into a well-controlled process that protects people, property, and the environment. Hiring a licensed and experienced dangerous and hazardous goods logistics provider is essential for ensuring compliance, safety and overall supply chain efficiency. At Freight Assist Australia, we are fully qualified to handle your dangerous and hazardous materials, investing heavily in research and procedures to build a robust and compliant transport solution. Start by learning more about our dangerous & hazardous goods transport services, or by reaching out to one of our dedicated team members.