The Modern Slavery Bill 2018 (Cth) was introduced into the House of Representatives on 28 June and has been referred to the Senate Legal and Constitutional Affairs Legislation Committee for report by 24 August.

[Note: For background on this legislation and its implications see Modern Slavery and Global Supply Chain Reporting: gearing up for compliance]

Commenting on the Bill, MinterEllison Partner Geraldine Johns-Putra, said that though it will be interesting to see whether the Bill will pass without amendment, ultimately its passage is assured given the support for modern slavery reporting on both sides of politics and in the community. 'Regulatory developments and governance standards are moving towards broader stakeholder protection and heightened transparency and accountability. Businesses today are expected to operate responsibly and ethically, not just profitably.' she said. She added that entities subject to the reporting requirements should be conducting assessments of their operations and supply chains and their risk management frameworks, to ensure they are ready to comply with the new requirements.

Key points

• The Bill proposes to establish a Modern Slavery Reporting Requirement. This will require businesses with annual consolidated revenue of more than $100m (including foreign entities carrying on a business in Australia), to publish annual statements on the steps they are taking to address modern slavery in their supply chains and operations.
• Entities will be required to report on all modern slavery practices criminalised under Commonwealth law (eg trafficking in persons; forced labour, forced marriage) in line with mandatory reporting criteria.
• Reporting entities will need to publish Modern Slavery Statements within six months from the end of their financial year. The Australian government will also publish an annual statement covering possible modern slavery risks in commonwealth procurement.
• Review of the legislation in three years.
• Detailed guidance for businesses will be developed in consultation with stakeholders before the Modern Slavery Reporting Requirement enters into force.

Initial response to the Bill

The Law Council has reportedly said that the revenue threshold for reporting requirements should be no higher than $60m (rather than the proposed $100m); that the Bill should include access to a national redress scheme for victims of modern slavery; and that an anti-slavery commissioner should be established to enforce the legislation.

Oxfam Australia's economic policy adviser Joy Kyriacou has reportedly welcomed the Bill but said that said it should include penalties for companies that fail to report, or report misleading information on, the steps they have taken to combat modern slavery. Shadow Minister for Justice Clare O'Neil has also reportedly welcomed the Bill but expressed disappointment at the absence of penalties and the lack of redress for victims.

Related: NSW Legislation

Separately, the NSW Modern Slavery Bill 2018 passed both houses on 21 May and is awaiting assent.