Amend the Federal Modern Slavery Act to Expand Reporting Requirements to Smaller Entities

Reported by: Natasha Lourenço

Publish date: 8th Sep 2024

Problem Identification: 

In Australia, medium-sized businesses are not required to report on modern slavery risks. 

A review of the Modern Slavery Act 2018  (the Act) highlighted that 2,393 medium-sized businesses are not required to report on modern slavery risks. A medium sized business has an annual revenue between AU $50-$100 million.

This could lead to a lack of transparency and accountability in a large part of the business sector. Without mandatory reporting, medium-sized entities may not assess or address modern slavery risks in their operations or supply chains, potentially undermining efforts to combat modern slavery.

Context: 

Solution Identification: 

Advice: 

Download the 1-page policy brief PDF here:

Amend the Federal Modern Slavery Act to expand reporting requirements to smaller entities

Download • 73KB

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Public Support: 

Professor John McMillan

https://www.ag.gov.au/sites/default/files/2023-05/Report%20-%20Statutory%20Review%20of%20the%20Modern%20Slavery%20Act%202018.PDF 

Where to go to learn more: 

1. Modern Slavery Act 2018 (Cth) - Read the full act here

2. Department of Home Affairs - Provides detailed information on Australia's Modern Slavery Act, including compliance guides for businesses. Visit the Department of Home Affairs

3. Global Slavery Index - Offers extensive data and analysis on the state of modern slavery worldwide. Explore the Global Slavery Index

4. Statutory Review of the Modern Slavery Act 2018 - Access the full report here.

Lived Experience: 

After years of working with a trusted supplier, Skyline Manufacturing, a business with an $80 million turnover, discovered that their partner was involved in modern slavery. Shocked by the revelation, the company cut ties. They realised that if they had been required to report under the Modern Slavery Act threshold earlier, they could have uncovered the exploitation much sooner. 

Reference list:

1. Attorney-General’s Department. (2023, May). Report - Statutory Review of the Modern Slavery Act 2018. https://www.ag.gov.au/sites/default/files/2023-05/Report%20-%20Statutory%20Review%20of%20the%20Modern%20Slavery%20Act%202018.PDF

2. Australian Human Rights Commission. (n.d.). What businesses need to know about the Modern Slavery Review. https://humanrights.gov.au/about/news/what-businesses-need-know-about-modern-slavery-review

3. Australian Institute of Company Directors. (n.d.). Modern Slavery Act review: Major changes brewing. https://www.aicd.com.au/regulatory-compliance/government-legislations/modern-slavery-law/modern-slavery-act-review-major-changes-brewing.html

4. Burn, J. (n.d.). Tabled document - NSW Department of Premier and Cabinet. Parliament of New South Wales.https://www.parliament.nsw.gov.au/lcdocs/other/12778/Tabled%20document%20-%20Professor%20Jennifer%20Burn%20-%20NSW%20Department%20of%20Premier%20and%20Cabinet.pdf

5. Business & Human Rights Resource Centre. (2023). Global: 2023 Global Slavery Index reports 20 per cent increase in modern slavery, 173 per cent within Australia, despite legislation. https://www.business-humanrights.org/en/latest-news/global-2023-global-slavery-index-reports-20-per-cent-increase-in-modern-slavery-173-per-cent-within-australia-despite-legislation/

6. Government of the United Kingdom. (n.d.). Publish an annual modern slavery statement. https://www.gov.uk/guidance/publish-an-annual-modern-slavery-statement

7. Ministry of Business, Innovation & Employment. (n.d.). Consultation on legislation to address modern slavery and worker exploitation - Summary of feedback. https://www.mbie.govt.nz/assets/consultation-on-legislation-to-address-modern-slavery-and-worker-exploitation-summary-of-feedback.pdf

8. Norton Rose Fulbright. (n.d.). Federal government updates guidance regarding Canada's new modern slavery legislation. https://www.nortonrosefulbright.com/en/knowledge/publications/2cfdad72/federal-government-updates-guidance-regarding-canadas-new-modern-slavery-legislation

9. UNSW. (n.d.). Testing the effectiveness of Australia’s Modern Slavery Act. UNSW Human Rights Institute. https://www.humanrights.unsw.edu.au/research/testing-effectiveness-Australia-modern-slavery-act

10. Walk Free. (n.d.). What is modern slavery? https://www.walkfree.org/what-is-modern-slavery/

11. Walk Free Foundation. (n.d.). Australia - Global Slavery Index. https://www.walkfree.org/global-slavery-index/country-studies/australia/

Conflict of interest / acknowledgment statement: 

N/a