Home based and mixed businesses

What is a home based food business?

A food business is any food preparation, food storage or food distribution activity which handles food for sale (including in-kind rewards). It includes non-profit and community organisations. (See the NSW Food Authority’s fact sheet Charities, community groups and volunteers for more details on these groups.) If the handling of food for sale occurs at an address which is also a domestic premises, there are special food safety issues to consider.

Examples include: preparing food for sale at markets or school canteens in a domestic kitchen; bed and breakfast accommodation; home based child care for a fee involving provision of food and home based catering businesses, among others. Some of the issues below also apply where the food premises is mostly commercial, but where people also live at the premises, eg. restaurants with accommodation for the restaurant owner, family or staff.

What obligations are there?

Some food processes have higher priority and must be directly licensed by the NSW Food Authority.

All other commercial food operations must be ‘notified’ to the NSW Food Authority before they start operating - see www.foodnotify.nsw.gov.au.

There are penalties for food businesses which are not properly licensed or notified.

Like all food businesses, those based at home must comply with all relevant parts of the Food Standards Code.

Before starting, make sure your proposed activities are allowed by the local council. Some councils may not approve operations involving high risk foods.

Some councils have chosen not to regulate home based food businesses and these businesses will fall under the Authority's inspection program.

If you receive approval, there are some food safety issues that need special attention:

Premises design and construction

• Dedicated food premises are built to meet minimum standards and must be easy to clean. In the case of domestic premises, there may be certain exemptions granted based on practicality and frequency of the business food handling. Standards for flooring in kitchens and storerooms and requirements relating to personal hygiene areas, among others, are not exempt. Adequate handwashing facilities, for example, must be available. Check with local council on what is considered adequate.
• For more details on construction requirements - see Standard 3.2.3 at www.foodstandards.gov.au
• Food must be kept protected from pests and vermin at all stages, including storage of ingredients. Premises must be designed to exclude pests where practical.
• Temperature control for certain foods is an important way to minimise food safety issues. Overloading domestic refrigerators and constantly opening the door means food takes longer to cool and harmful microorganisms have more chance to grow. Adequate refrigeration capacity is essential.
• Refrigerate foods in small portions to allow proper cooling. Refrigerated foods should be kept below 5°C.

Food handling and hygiene

There are a number of aspects to safe and hygienic food handling that need to be considered in a home based food business.

• Avoid cross contamination between ready-to-eat food and raw food or ingredients – including from food contact surfaces, utensils, sinks, taps, splash areas, tea towels and so on.  
• Cook food thoroughly without overloading the oven.
• Keep hot food hot then cool as quickly as possible for storage.
• Keep cold food below 5°C.
• Monitor temperature with thermometers in the oven and refrigerator.
• Control temperatures during transport.
• Some food containers are not intended for re-use and can transfer harmful chemicals to food if not used properly. Food containers and other materials should not be re-used if they are not rated for multiple uses by the manufacturer.
• Maintain hygiene with frequent, adequate hand washing. Consider using single-use towels for drying hands. Do not use tea towels.
• An adequate cleaning regime should be in place.
• Other people living at or visiting the premises who are sick can leave bacteria in bathrooms, laundries and common areas. These can be passed onto food. They should not have access to food preparation areas.
• Young children and pets should not have access to food preparation or storage areas.

More detailed information about safe food handling see correct cooking temperatures, safe food tips and safe handling – poultry & red meat.

All food handlers must have food safety skills and knowledge appropriate to their activities. Short food safety courses can be helpful. Food handlers have specific hygiene obligations which apply to them as individuals and which they must observe.

For further details on handling requirements see health and hygiene requirements for food handlers.

Product labelling

There are various labelling requirements for all foods, but there are also some exemptions.

• Requirements include: manufacturer details, ingredient lists, ‘best before’ or ‘use-by’ marking as appropriate to the product, batch numbering for traceability, and certain other requirements - see the Food Standards Code User Guides for details.
• Unless exempt, all packaged food for retail sale is required to display a Nutrition Information Panel (NIP). There is an online calculator to help generate complying NIPs – see nutrition panel calculator.

There are also labelling restrictions to comply with, such as ‘characterising ingredients’, making health claims in product marketing and other prohibitions.

Inspections of home based businesses

The Authority’s inspection program across food industries is limited to higher risk operations.

Ready-to-eat, potentially hazardous foods such as sandwiches, salads, non-preservative sauces would be routinely inspected, whilst non-potentially-hazardous foods, like jams, chutneys, biscuits or chocolates would not. Whether a home based food business falls within the inspection program will be determined on a case by case basis.

The Authority will inspect premises for compliance with the Food Standards Code requirements, in particular Food Safety Standards 3.2.2 and 3.2.3. The availability of hand washing facilities is of particular importance.

For packaged foods, labelling compliance will be assessed.

Inspections will be charged at the current Authority inspection rate.

The Authority will inspect home based businesses based on the above risk-based criteria. It will not inspect businesses on request to meet market access conditions required by some councils.

Other issues

• Businesses may be required to have a Food Safety Supervisor (FSS).
• Anyone in charge of a food business should be able to identify all relevant food safety issues and control them. Short courses on food safety are run by specialist providers and some educational institutions.
• Home based businesses should consider how they will keep the operation running if the usual food handlers are sick. People who are sick must not prepare or handle food for sale.

Keep records

• It’s a good idea to keep records of ingredients’ batches used to enable traceability, for example if an ingredient is recalled by another producer.
• Proprietors should be aware that food safety officers from the NSW Food Authority and environmental health officers (EHOs) from the local council are entitled to visit and inspect premises involved in a food business. Inspection fees may be charged by either agency.
• Licensing or notification to the NSW Food Authority does not override any local council requirements. It is highly recommended to contact the local council with respect to zoning restrictions, development planning, construction and fit-out standards (eg AS 4674.2004), waste disposal, environmental controls and other local regulations.

It is the responsibility of each food business to understand relevant food safety requirements and comply with them. Some food businesses engage consultants to help them meet compliance obligations.