It has been a year since the Modern Slavery Act 2018 (Act) has come into force and the first mandatory modern slavery statements (Statement) are due by as soon as the end of June this year, depending on the applicable accounting period of the reporting entity. Accordingly, this is an opportune time for all companies based or operating in Australia to revisit the requirements under the Act.
Modern Slavery Act
The Act came into force on 1 January 2019 with the purpose of requiring the relevant entities to report on the risks of modern slavery in their operations and supply chains, and actions to address those risks.
Modern slavery within the meaning of the Act refers to serious instances of undermining or depriving of human freedom such as exercising ownership over a person, human trafficking and child labour.
Who needs to report?
The Act requires “reporting entities” to give annual Statement regarding themselves, and any other entities owned or controlled by them, to the Home Affairs Minister (Minister).
A reporting entity is either:
- an Australian company, or a foreign company that carries on business in Australia, with a consolidated revenue (i.e. the total revenue of the entity and other entities controlled by that entity) of at least $100 million in a financial year; or
- a company whose consolidated revenue in a financial year is less than $100 million but volunteers to comply with the Act by providing written notice to the Minister.
A joint Statement may be submitted covering one or more reporting entities.
What information must be included in the Statement?
A Statement must:
- identify the reporting entity;
- describe the structure, operations and supply chains of the reporting entity;
- describe the risks of modern slavery practices in the operations and supply chains of the reporting entity, and any entities that the reporting entity owns or controls (Subsidiaries);
- describe the actions taken by the reporting entity and its Subsidiaries to assess and address those risks, including due diligence and remediation process;
- describe how the reporting entity assesses the effectiveness of such actions;
- describe the process of consultation with:
- Subsidiaries; and
- in the case of a joint Statement, the entity giving that Statement; and
- include any other information that the reporting entity, or the entity giving the Statement, considers relevant (e.g. information on any association with a civil society for tackling modern slavery issues).
When is the first Statement due?
A reporting entity must submit a Statement within 6 months after the end of each financial year, which will vary depending on the accounting period that applies to the entity.
The following table sets out when the first Statements are due for some of the most common accounting periods:
| Entity’s annual accounting period | First reporting period under the Act | Due date for the first Statement |
| 1 July – 30 June
(Australian financial year) |
1 July 2019 – 30 June 2020 | 31 December 2020 |
| 1 January – 31 December
(Calendar Year) |
1 January 2020 – 31 December 2020 | 30 June 2021 |
| 1 April – 31 March
(Foreign Financial Year – including UK and Japan) |
1 April 2019 – 31 March 2020 | 30 September 2020 |
Submission requirements
Before a Statement can be submitted, it must be approved by the principal governing body (e.g. the board) and signed by a responsible member (e.g. the director or CEO) of the reporting entity (or in the case of a joint Statement, each of the reporting entities, controlling entity of the reporting entities or at least one of the reporting entities).
The Statement then must be submitted to the Australian Border Force after which it will be published on the online modern slavery statements register, subject to the Minister’s discretion to refuse to publish if the Statement does not fully comply with the Act.
If you would like more information about the Modern Slavery Act 2018 and its reporting requirements, please contact our specialists.