Automic Group | News

Government Announces Major Reform to Modern Slavery Act: What Your Business Needs to Know

Written by Steve Morgan – Principal, Automic ESG | 12 December 2024

 

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: 

  1. Establishing an effective compliance and enforcement framework 
  2. Increasing clarity and simplicity in reporting obligations 
  3. Enhancing support and guidance for businesses 
  4. 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: 

  1. Stakeholder consultation on reporting criteria changes 
  2. Development of the penalties framework 
  3. Enhancement of guidance materials 
  4. 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