It's a question many New Zealand business owners and health and safety managers think about before booking their first test and tag inspection: what actually happens if something fails?
The short answer is that a failed appliance is removed from service immediately and must not be used again until it has been repaired and retested, or replaced. But there's more to it than that. This guide covers exactly what happens during and after a failed inspection, what your options are, and how to handle failures in a way that keeps your workplace compliant and your operations running.
What "Failing" a Test and Tag Means
An appliance can fail a test and tag inspection in two ways.
Failing the Visual Inspection
The first stage of every test and tag is a visual examination of the appliance, cord, and plug. Common visual failures include damaged, cut, or frayed flex cords; exposed conductors visible inside a damaged cord; cracked, broken, or damaged plugs; damage to the appliance body such as burns, cracking, or signs of impact; evidence of liquid damage or contamination; damaged or missing strain relief fittings; signs of overheating such as discolouration or melted plastic; and unauthorised modifications.
If a visual fault is found, the appliance fails immediately. No electrical testing is needed, the visual failure alone is sufficient grounds for removal from service.
Failing the Electrical Test
If the visual inspection is passed, the technician proceeds to electrical testing. This measures earth continuity for Class I equipment, verifying that the earth path is intact and provides adequate protection against fault current, as well as insulation resistance, which measures the insulation between live conductors and the accessible body of the appliance. Low insulation resistance indicates degraded or compromised insulation, a pathway for fault current that creates both shock and fire risk.
An appliance that fails either of these tests has a measurable electrical fault even if it looks fine externally. This is why visual inspection alone is never sufficient, many electrical faults are invisible.
What Happens Immediately After a Failure
Under AS/NZS 3760:2022, the process is straightforward and non-negotiable. The technician attaches a clearly visible "failed" or "out of service" tag to the appliance. The fault is documented in the inspection records, noting what was found, which test it failed, and the date. The appliance is then removed from service and must not be plugged in, used, lent out, or returned to the floor until it has been repaired by a qualified person and retested, or disposed of.
This all happens on the day of inspection. You will know what failed, why it failed, and what needs to happen next before the technician leaves.
Your Options After a Failure
Repair and Retest
Many common faults are repairable. The most frequently repaired items are extension leads and power cords, where a damaged flex cord or plug is often replaceable by an electrician or qualified repairer, after which the item is retested. Power tools can sometimes be repaired by an authorised service centre depending on the nature of the fault. After any repair, the item must be retested by a competent person before returning to service. Repair alone is not enough, the retest confirms the fault has been resolved.
Replace
For older appliances, items with significant faults, or appliances where repair costs exceed replacement cost, disposal and replacement is often the better choice. New equipment does not need to be tested before first use under AS/NZS 3760:2022, but it should enter your ongoing testing programme from that point.
Retire the Item
If the appliance is no longer needed, the failure is a good prompt to remove it from your inventory permanently. Fewer appliances in your testing pool means lower ongoing compliance costs.
What You Cannot Do After a Failure
To be clear about what is not permissible: you cannot continue using a failed appliance while waiting for a repair or replacement. You cannot remove the failure tag and return the appliance to service. You cannot override a failure based on operational need, and you cannot ignore the failure documentation.
Continuing to use a failed appliance after it has been identified puts you in direct breach of AS/NZS 3760:2022 and your obligations under the Health and Safety at Work Act 2015. If an incident occurs involving that appliance, the documented failure record will be discoverable by WorkSafe NZ.
How Many Appliances Typically Fail?
Failure rates vary by industry, environment, and how consistently testing has been maintained. Well-maintained office environments with annual testing typically see low failure rates of around one to five percent of appliances. Industrial and manufacturing environments see higher failure rates, particularly for equipment that is heavily used or moved frequently. Construction sites, particularly where testing has not been done previously, can see higher rates on the initial inspection. Hospitality and food service environments often see failures among extension leads and kitchen appliances due to the conditions they operate in.
If your business has not done test and tag previously, or has a gap in its testing programme, a higher failure rate on the initial inspection is not unusual. It's the compliance programme working correctly, the faults existed before the inspection; the testing made them visible.
The Business Impact of Failures
One concern businesses raise before booking test and tag is what happens if too much equipment fails and they can't operate. This is rarely as significant a problem as feared.
The majority of failures are extension leads, older power boards, and peripheral items rather than primary tools. Losing a damaged extension lead is less operationally disruptive than it sounds. Failed items are identified, not destroyed, and you can assess them immediately and decide whether to repair or replace. Items worth repairing can often be back in service within days.
It's also worth keeping perspective on the alternative. An electrical incident involving faulty equipment creates far more operational disruption than a few failed items. Claims, investigations, injured workers, and enforcement action are all far more expensive than replacing some appliances.
If you operate in a high-risk environment or have a large number of appliances, it's reasonable to have some spare capacity available before your testing session. Your technician can advise on likely failure rates based on your environment type.
Documentation: What You Need to Keep
After a testing session that includes failures, your compliance records should show which appliances passed, which failed and with what fault noted, the outcome for failed items (repaired and retested, replaced, or retired), and retest results for repaired items. This creates a complete audit trail.
The Local Guys Test and Tag provides comprehensive compliance reports and certificates after every session, including full documentation of any failed items. You can learn more about our portable appliance testing service and what our compliance reports include.
What If You Find Damaged Equipment Between Testing Periods?
Test and tag creates a scheduled safety net, but visual observation by workers between testing dates is also valuable. If a worker notices a damaged cord, a cracked plug, or any sign of appliance damage between scheduled testing, the appliance should be taken out of service immediately, set aside so it isn't accidentally used, and reported to whoever manages the testing programme. Don't wait for the next quarterly or annual visit to deal with obviously damaged equipment.
Get Your Test and Tag Completed
The Local Guys Test and Tag carries out inspections across New Zealand, working to AS/NZS 3760:2022. We handle the full process, visual inspection, electrical testing, tagging, and compliance documentation, and our reports clearly identify any failed items and what action is required.
Our technicians operate in Auckland, Wellington, Christchurch, Hamilton, Tauranga, Dunedin, and all major NZ regions.
Request a Quote or call us anytime on 0800 733 858.
Frequently Asked Questions
What happens if an appliance fails a test and tag in NZ?
A failed appliance must be immediately removed from service and tagged as out of service. It cannot be used again until it has been repaired by a qualified person and retested, or replaced. The failure is documented in your compliance records.
Can you still use an appliance that failed test and tag?
No. Under AS/NZS 3760:2022 and the Health and Safety at Work Act 2015, a failed appliance must not remain in service. Using a failed, tagged appliance exposes your business to WorkSafe NZ enforcement action and removes any defence if an incident occurs.
Who can repair an appliance that fails test and tag?
Repairs must be carried out by a suitably qualified person, typically a registered electrician or authorised service centre for the appliance type. After repair, the appliance must be retested by a competent person before returning to service.
Does new equipment need to be tested before it can be used?
No. AS/NZS 3760:2022 does not require new equipment to be tested before first use, provided it is in original condition with no visible damage. It should, however, be entered into your testing programme from the point of first use so it is captured in the next scheduled inspection.
What should I do if I notice damaged equipment between test and tag sessions?
Remove it from service immediately, set it aside clearly, and report it to whoever manages your health and safety compliance. Don't wait for the next scheduled testing date. Workers should be encouraged to report damaged equipment rather than continuing to use it.
How does a test and tag failure affect my insurance?
Many commercial insurance policies include conditions requiring equipment to be maintained in accordance with relevant standards. If an electrical incident involves equipment that has failed a test and was knowingly continued in service, this creates grounds for insurers to reduce or deny a claim. Maintaining compliance records, including documented failures and actions taken, supports your position in any claim.
What is the failure rate for test and tag in NZ workplaces?
Failure rates depend on the environment, age of equipment, and how consistently testing has been maintained. Well-maintained office environments typically see failure rates of around one to five percent. Construction sites and industrial environments, particularly where testing has not been done regularly, often see higher initial failure rates.
