Modern Slavery Act Review: What The Australian Government’s Responses Means for Businesses

Recommendation No.

Recommendation from Review Report

Government Response

Recommendation 4

Lowering the reporting threshold from $100 million annual consolidated revenue to $50 million.

The Government considers it inappropriate to lower the reporting threshold while reporting requirements are changing. This recommendation will be reconsidered after amendments have been established.

Recommendation 20

Introduction of penalties for non-compliance with the Act. 

The Government will consult on the penalty framework for non-compliance with the Act.

Penalties are proposed for:

• Failing to submit a modern slavery statement.

• Providing false information in a modern slavery statement.

• Failing to comply with a request for remedial action.

Recommendations 5, 10, 13, 15 and 16

Preparing improved guidance for reporting entities, including the preparation of specific guidance for small and medium-sized entities (“SME’s”).

Development of a mandatory cover sheet and a template modern slavery statement.

The Government will prepare specific guidance for SME’s. The existing guidance for reporting entities will be reviewed. Supplementary guidance will also be prepared to assist reporting entities in showing the approval of the modern slavery statement by their governing bodies.
An optional modern slavery statement template will be prepared which reporting entities will be able to utilise as the base of their modern slavery statements. The Government will also consult and develop a mandatory cover sheet to accompany modern slavery statements to address specified matters to assist with the comparability of modern slavery statements. 

Recommendations 7 and 27

Amendments to the mandatory criteria. In particular:

• Replacing the term “operations and supply chains” with “operations and supply networks”

• Revising Criteria 3, 4, 5 and 6

• Add new mandatory criteria requiring entities to report on modern slavery incidents and risks identified, grievance and complaint mechanisms available to stakeholders and consultation undertaking on modern slavery risk management.
  

New powers to the Attorney General or Anti-Slavery Commissioner to produce lists of high-risk locations, industries, products, suppliers or supply chains.

The Government will continue consulting on these proposed amendments. However, they agree in principle with these proposed changes and additions to the mandatory reporting criteria.
Additionally, the Government agrees in principle with the recommendation that the Attorney General or the Anti-Slavery Commissioner be given powers to declare locations, industries, products, suppliers or supply chains as high risk for modern slavery. This then feeds into reporting requirements by requiring reporting entities to report on these risks in their modern slavery statements if they identify these risks in their operations or supply chains.

Recommendation 12

Amending reporting timeframes to provide an option to produce a modern slavery statement every three years, with smaller statements updating the modern slavery statements prepared in the intervening two years. 

The Government will not make changes to the annual reporting requirements. However, the Government will consider this again in future reviews of the Act.