A Tier 1 home-based food business undertakes higher risk food handling activities, requiring a separate purpose-built commercial kitchen.
Any home-based food business that prepares potentially hazardous food for sale or prepares non-potentially hazardous food for sale using a more complex food handling method is a Tier 1 home-based food business, except where:
- the business meets the definition of a Tier 2 home-based food business.
Complex food handling activities
More complex food handling methods include:
- food processing involving acidification
- food processing involving fermentation
- food processing involving drying, smoking or curing
- food processing involving canning and commercial sterilisation of food.
Examples of Tier 1 home-based food businesses
- A business manufactures, packages and delivers ready to eat potentially hazardous foods such as salads, cheesecake or sausage rolls to a café.
- A food business manufactures tempeh, which is packaged for wholesale and sold to a local supermarket.
- A business makes cakes with cream and custard fillings so they can be sold to a local restaurant.
- Business prepares hot meals such as pasta, casseroles and curries. The food is cooled packaged and then delivered to customers homes.
- A food business manufactures gnocchi, which is packaged and labelled for wholesale and sold to local supermarkets, cafes and corner stores.
To create a separate purpose-built commercial kitchen, you could convert a spare room or garage space, or construct a purpose-built structure on site. The facilities must be of a commercial kitchen standard, which is fully compliant with the Food Safety Standards 3.2.3.
For Tier 1 home based food business fit out requirements refer to How do I fit out a new kitchen?
Tier 2 home-based food businesses present a medium-level food safety risk, as handling of potentially hazardous food occurs, but the type of business limits the amount of food handled at any one time.
Restrictions on Tier 2 food handling activities
Approved tier 2 business activities are limited to:
- preparing potentially hazardous food (such as chopping, cutting or slicing) which is then transported to a market stall for cooking, making or otherwise finishing and then sold by retail sale.
- meals provided to guests at a bed and breakfast
- meals provided to guests at a farm homestyle accommodation
- meals provided to guests at a motel kitchen that also serves as the kitchen for owners or onsite managers.
Note: home-based food business kitchens may only be approved in accommodation premises that cater for guests. Premises that provide a dining facility that is open to the public must not be approved as a home-based kitchen Tier 2 operation.
Tier 2 home-based food businesses must only handle food for retail sale.
Tier 2 home-based food businesses must not wholesale food.
Examples of Tier 2 home-based food businesses
- The bed and breakfast has 3 rooms and handles potentially hazardous foods. The bed and breakfast chef prepares 6 meals at any given time, which are then immediately consumed by the guests.
- A temporary food stall operator slices vegetables and meats then portions them into sealed containers, ready to cook at a market occurring on the following day. The potentially hazardous foods are stored in a fridge used solely for business activities, then safely transferred to eskies containing ice for transport on the morning of the market. The temporary food stall licensee and the home-based food business licensee must be the same person/company.
- A temporary food stall operator cooks, cools, packages and then refrigerates diced chicken for use at a market occurring the following day. The potentially hazardous foods are stored in the fridge used solely for business activities, then safely transferred to eskies for transport on the morning of the market. The chicken is then reheated thoroughly before serving to customers. The temporary food stall licensee and the home-based food business licensee must be the same person/company.
Tier 2 home-based food businesses present a medium food safety risk and can be operated from a standard domestic kitchen, given the minimum alterations set in the Home-Based Food Business - Fit Out Guide are satisfied.
A Tier 3 home-based food business presents a lower food safety risk, producing small volumes of non-potentially hazardous foods. The requirement for only minor changes to a household kitchen reflect the lower food safety risk of the food handling activities undertaken.
Restrictions on Tier 3 food handling activities
A Tier 3 home-based food businesses must only produce a single line of non-potentially hazardous food for retail sale produced in a domestic style household kitchen or limited wholesale may potentially be provided for selected foods.
What is a single line of food?
A single line of food is a single food product or multiple food products that share the same processing method and contain very similar ingredients.
Examples of food that can fall within a single line of non-potentially hazardous food include (non-exhaustive list):
- Mixing flour and water - bread, tortillas, flat bread, bagels, scones
- Batter with egg - cakes, cake pops, cake balls
- Creating a dough / shortening fat with flour - biscuits, cookies, crackers
- Adding sugar to boiling fruit - jams, marmalades, preserves.
Please note, if you propose to produce 2 or more single lines of food, you must apply for a Tier 1 home-based food business licence. A Tier 3 business may only produce 1 single line of food.
For example, if you propose a business that produces food products by mixing flour and water, as well as mixing batter with eggs, you must apply for a Tier 1 home-based food business licence.
What is limited wholesale?
Wholesale is not selling products directly to the customer but selling food products to a retailer(s) so they can on sell to their customers.
Limited wholesale is a limitation or restriction on the types of foods that may be sold wholesale from a Tier 3 home-based food business.
Food types permitted for limited wholesale:
- honey
- dry spices
- tea
- coffee beans (not roasting)
- salt
- seeds or
- dry herbs.
Examples of Tier 3 home-based food businesses
- A home-based food business that manufactures non-potentially hazardous cakes for sale at a market stall.
- A home-based food business re-packages dry spices for limited wholesale at a local supermarket.
- A home based food business bakes both loaves of bread and flat bread which are sold from a market stall.
Tier 3 home-based food businesses present a lower food safety risk and can be operated from a standard domestic kitchen, given the minimum alterations set in the Home-Based Food Business - Fit Out Guide are satisfied.