Article

1. Why compliance matters — and why it's less daunting than you think

Every business that stores diesel on-site in Australia must operate within a framework of national standards, state legislation, and local council rules. For operators in mining, agriculture, construction, and transport, this can feel like a significant barrier — particularly when you're trying to move quickly in a supply-constrained environment.

The good news: for the most common above-ground diesel storage scenarios, the compliance pathway is more straightforward than most people expect. The rules exist to protect people, the environment, and your business — and when you understand them, they become a checklist, not an obstacle.

2. AS 1940 — the national standard explained

Australian Standard AS 1940 — formally titled The Storage and Handling of Flammable and Combustible Liquids — is the primary national framework governing how diesel must be stored and handled. Diesel is classified as a Class C1 combustible liquid. The standard was most recently revised in 2017 and applies to all sites storing flammable or combustible liquids, including farms, mine sites, construction projects, fleet depots, and workshops.

Key requirements under AS 1940 for above-ground bulk diesel storage:

3. Self-bunded tanks and why they simplify everything

The single most significant compliance advantage for most above-ground diesel storage installations is choosing a self-bunded tank. A self-bunded (double-wall) tank has a built-in inner tank and outer containment wall — a tank within a tank — that provides the 110% secondary containment required by AS 1940 without any external civil works.

This eliminates the need to design and construct a separate engineered bund, which was historically the most expensive, time-consuming, and approval-intensive part of any fuel storage installation. For operations that need to get storage in place quickly, self-bunded tanks significantly compress both the compliance and installation timeline.

4. State and territory EPA requirements

While AS 1940 provides the national baseline, fuel storage is also subject to state and territory dangerous goods legislation and EPA requirements — and these vary by jurisdiction. Here is a practical summary for each state and territory.

5. Council approvals — when you need them and what to expect

Whether a planning or building permit is required for an above-ground diesel installation depends on several factors: your jurisdiction, tank size, whether the property is rural or industrial-zoned, and whether any permanent structure is involved.

When council approval is typically not required

In many rural and agricultural zones, and for industrial-zoned properties across most states, installing a self-bunded above-ground diesel tank on a prepared hardstand — without a permanent structure — falls within permitted development. This is a key advantage of above-ground self-bunded systems over underground storage, which almost always requires formal council involvement.

When council approval is typically required

A planning or building permit is more likely to be required when the installation involves a permanent structure such as a pump shed, roof, or enclosed building; when the site is in a commercially or industrially zoned area with specific development controls; or when the installation is near property boundaries, watercourses, or sensitive receptors. Some councils also require notification for dangerous goods storage above certain volumes, even without a formal permit.

The practical approach

A-FLO recommends a two-step scoping process before specifying any installation: first, confirm dangerous goods licensing obligations with the relevant state authority for your proposed volume; second, make a single call to your local council's planning department confirming the site address, proposed tank size, and intended placement. In most cases this takes an hour and produces a clear answer — eliminating the risk of specifying a system that triggers an approval process you weren't expecting.

6. The compliance pathway step by step

• 1 Define your requirements first. Establish your approximate daily consumption, the buffer in days you want to hold, your site location, and the fuel type (diesel, ULP, AdBlue). This drives the tank size — which drives the compliance obligations.
• 2 Confirm state dangerous goods obligations. Contact the relevant state authority or engage A-FLO to confirm whether your proposed storage volume triggers a dangerous goods licence, notification, or registration requirement. This step takes one conversation and should happen before you order anything.
• 3 Check with your local council. A single call with your site address, proposed tank size, and placement details will confirm whether any planning or building permit is required. In rural zones with above-ground self-bunded tanks, the answer is often no.
• 4 Select a compliant tank system. A self-bunded steel tank specified to AS 1940 eliminates the external bund requirement. A-FLO's bulk diesel tanks come with compliant secondary containment, appropriate venting, fill points, and can be configured with metering, fuel management, and high-level alarms as required.
• 5 Confirm site setbacks before preparing the base. Verify proposed tank placement meets setback distances from buildings, boundaries, and ignition sources. For diesel (C1), the required setback need not exceed 7.5m. Get this confirmed before site preparation begins — repositioning after the fact is costly.
• 6 Professional installation and commissioning. A-FLO manages supply and installation nationally. Proper commissioning ensures correct positioning, integrated dispensing equipment, compliant signage and placarding, and a spill response kit on site from day one.
• 7 Retain your compliance documentation. Keep records of the tank specification confirming AS 1940 compliance, installation records, state registration or notification confirmation, and any council correspondence. This documentation is your evidence of compliance in any audit or incident investigation.

7. Ongoing obligations after installation

Compliance doesn't end at commissioning. Ongoing obligations for diesel storage include regular visual inspection of the tank, containment walls, venting, and dispensing equipment; maintenance of pump and metering systems; replenishment of the spill response kit after any use; and periodic review of signage for legibility and accuracy.

For larger installations — particularly on mine sites and in WA and NT — periodic audits by the relevant dangerous goods authority may occur. Businesses operating fuel management systems with digital metering and access controls are better positioned for these audits, as the system produces usage records that also demonstrate responsible operational management.

8. Common mistakes — and how to avoid them

• ⚠ Buying a tank before checking compliance requirements. Tank size drives obligations — and some sizes trigger licensing or approval processes that take time. Get the compliance picture first, then specify the tank.
• ⚠ Assuming rural land means no obligations. State dangerous goods requirements apply regardless of zoning. A farm storing 10,000L has the same AS 1940 obligations as an industrial site. The council approval pathway may be simpler, but the safety standards are identical.
• ⚠ Installing without adequate setback distances. Tank placement near buildings or boundaries after the fact can mean physically relocating the tank. Confirm setbacks before site preparation begins.
• ⚠ No spill response kit on site. Mandatory under AS 1940:2017 where flammable or combustible liquids are dispensed. Should be part of every installation from day one — not an afterthought.
• ⚠ Missing the high-level alarm requirement. Required for tanks over 25,000L of combustible liquid. If you're specifying a large-capacity system, confirm this is included before commissioning.
• ⚠ Inadequate or missing signage. Placarding requirements under AS 1940 and dangerous goods legislation are specific. Tanks must display the product type, hazard class, and emergency contact details. This is typically the first thing inspectors check.
• ⚠ Not keeping compliance records. Tank specifications, installation records, and state registration confirmations should be retained for the life of the installation. In an audit or incident, documentation is your evidence.

Browse compliant diesel storage solutions

A-FLO supplies and installs AS 1940-compliant bulk diesel storage nationally — from compact self-bunded tanks for farms and fleet depots through to large-scale Fueltainer systems for remote mine sites and civil projects. All tanks are specified, supplied, and installed by our technical team with compliance built in from the start.