The Australian Government entered modern slavery legislation into force on 1 January 2019: the Modern Slavery Act 2018 (Cth) (the 'Act'). The Act contains many important provisions which have the capability to significantly reduce Modern Slavery in global supply chains. It aims to protect the labour rights of the vulnerable through entity compliance.
Entities with a reporting period of 1 January to 31 December are reminded that their annual Modern Slavery Statement must be submitted to the Department of Home Affairs by no later than 30 June 2022.
Who is required to submit a modern slavery statement?
The modern slavery reporting regime is only mandatory for a 'reporting entity'. This refers to an entity that:
- had a consolidated revenue of at least $100 million for the reporting period, and
- is an Australian entity, or carried on business in Australia, at any time during the reporting period.
The regime also applies to the Commonwealth Government and certain Commonwealth entities and companies.
What must be included in a modern slavery statement?
The Act sets out mandatory criteria that must be included in all modern slavery statements. This includes detailed particulars of the reporting entity's business operations and supply chains, the risks of modern slavery practices occurring in its business and the actions taken by the reporting entity to address those risks.
Once submitted, all modern slavery statements are published on a public register to ensure transparency and accountability among reporting entities.
When are modern slavery statements due?
Entities with a reporting period of 1 January to 31 December are reminded that their annual Modern Slavery Statement must be submitted to the Department of Home Affairs by no later than 30 June 2022.
If a reporting entity fails to meet this deadline, the Minister for Home Affairs may request that the entity provide a reason for its non-compliance and undertake specified remedial action. If a reporting entity does not comply with these requests, the Minister may publish details of the entity's non-compliance on the public register, which is likely to have negative reputational consequences for the entity.
With the due date for submission fast approaching, entities should consider whether they are covered by the modern slavery regime and ensure their modern slavery statements comply with the requirements of the Act.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
