NSW Industrial Court president Justice Boland handed down the fine when Visy pleaded guilty to a breach of Section 10(1) of the Occupational Health and Safety Act 2000.

A WorkCover spokesman said evidence at the trial showed a combination of poor construction and the weight of stockpiled recyclable material stacked against the wall caused the collapse.

Visy Recycling national public affairs manager Geoff Potts said the incident was not something any company would be proud of, but resulted in changes that would ensure a safer workplace.

"Although this incident is serious ...Justice Boland made a number of positive comments focusing on Visy Recycling's early plea of guilty, co-operation during the investigation and its subsequent remedial actions,'' Mr Potts said.

Justice Boland described the company as "a good corporate citizen''.

"Given the commendable overhaul of the defendant's policies and practices relating to occupational health and safety and its obvious commitment to workplace safety, I consider the risk of reoffending is not great,'' he said.

Ben Ross of Engadine was with his mother in the yard of the family's panel-beating business when the wall collapsed.

"I was standing about four feet from the wall talking to my mother,'' he said. "I heard a cracking sound and looked up as it started to come down. I just grabbed Mum and dragged her away, but it was a very close thing.''

The collapse crushed five new Toyota Camrys, each valued at $35,000, which were used as courtesy cars.

A car belonging to Andrew Ross, Ben's younger brother, was also damaged.

The court heard that a WorkCover investigation in February 2004 identified the potential for the boundary wall to collapse almost two years before the incident.

Visy had developed a system to prevent material being stacked above a two-metre-high concrete barrier inside the boundary wall, but hadn't provided necessary training to ensure it did not occur.