The Australian Government has released the Report on the Statutory Review of the Modern Slavery Act.
The report makes 30 recommendations for government consideration, including:
- amendments to the Act, such as lowering the threshold and widening the scope of entity reporting;
- introducing penalties for specific non-compliance;
- the role of the Anti-Slavery Commissioner in relation to the Act.
An important recommendation is that the reporting obligation under the Act is extended to businesses
that have an annual consolidated revenue of $50M or more. The current reporting threshold is $100M. Smaller businesses would not be subject to penalties or due diligence requirements until their
third reporting cycle.
To strengthen and sharpen the reporting process and context, the Report recommends that the Act require entities to implement a due diligence system that will go beyond reporting and will impose a duty on entities to take effective action to identify and assess risks, and track performance in addressing them.
It also proposes that the annual modern slavery statement reports on declared high risk regions, locations, industries, products, suppliers or supply chains.
Penalties would be introduced for failing to report without reasonable excuse, submitting a report that
knowingly includes materially false information, and failing to put a due diligence system in place.
To streamline the reporting process the report recommends that entities have the option of submitting a full modern slavery statement every three years, and update reports in the intervening two years.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
