Earlier this month, The Albanese Government has unveiled its response to the statutory review of the Modern Slavery Act 2018, signaling significant reforms to strengthen Australia's response to modern slavery. The announcement comes alongside the commencement of Mr. Chris Evans' five-year term as the inaugural Commonwealth Anti-Slavery Commissioner.
Key points from the announcement
The Government has accepted 25 of the 30 recommendations from Professor John McMillan AO's review, demonstrating a clear commitment to enhancing the effectiveness of Australia's modern slavery reporting framework.
The response focuses on four key areas:
- Establishing an effective compliance and enforcement framework
- Increasing clarity and simplicity in reporting obligations
- Enhancing support and guidance for businesses
- Ensuring continuous improvement of the framework
What this means for business
New enforcement mechanisms
The Government will consult on introducing civil penalties for:
- Non-submission of modern slavery statements
- Including false information in statements
- Failing to comply with remedial action requests
Enhanced reporting framework
Businesses can expect:
- Clearer mandatory reporting criteria
- A new optional reporting template
- Introduction of a mandatory coversheet for statements
- Improved guidance materials
Risk declaration system
A new system will be developed to identify and declare high-risk regions, industries, products, and supply chains, helping businesses better target their due diligence efforts.
Maintaining current thresholds
The Government has maintained the existing reporting threshold of A$100 million annual consolidated revenue, providing stability for reporting entities while other reforms are implemented.
Implementation timeline
The Attorney-General's Department will lead the implementation process through:
- Stakeholder consultation on reporting criteria changes
- Development of the penalties framework
- Enhancement of guidance materials
- Improvements to the Modern Slavery Statements Register
Why this matters
Modern slavery remains a critical global issue that deprives victims of their fundamental rights and freedoms. These reforms reflect the Government's commitment to disrupting these crimes and supporting victims while ensuring businesses play their part in addressing modern slavery risks in their operations and supply chains.
Next steps for your business
Organisations should:
- Review current modern slavery reporting processes
- Monitor upcoming consultation opportunities
- Prepare for enhanced compliance requirements
- Consider implementing more robust documentation systems
How Automic Can Help
Automic's technology-enabled ESG services can support your business with all aspects of modern slavery reporting and compliance. Our team can assist with:
- Gap analysis and benchmarking of current reporting practices
- Efficient technology based modern slavery risk assessment platform
- Implementation of enhanced due diligence systems
- Development of robust reporting frameworks
- Ensuring you are prepared for new compliance requirements
Get Started Today
Contact Automic's ESG team for a consultation or for further information about our modern slavery reporting services.
Find out more about our comprehensive ESG services and how we can support your business in meeting its modern slavery reporting obligations.
Further Reading
