DO YOU UNDERSTAND YOUR Reporting Requirements?
If you carry on a business in Australia, you may have to submit a Modern Slavery Statement covering the risks of modern slavery in your supply chain during your accounting year.
Under the Modern Slavery Act 2018, businesses with an annual consolidated revenue of AUD$100 million or more who are either
- Australian entities at any time during the reporting period, or
- foreign entities carrying on business in Australia at any time during the reporting period
must submit a Modern Slavery Statement to be made publicly available on Modern Slavery Register.
This includes individuals, partnerships, associations and other entities that meet the above criteria. Reporting obligations apply equally to commercial, non-commercial and not-for-profit organisations.
Businesses that do not meet these criteria are not required to submit statements, but they can choose to voluntarily report in a similar manner. Many businesses decide to voluntarily report to demonstrate their credentials in this area, or as way to get familiar with reporting if they expect to meet the revenue thresholds in future years.
For businesses that do have reporting obligations, it is imperative to get it right, or face a range of growing consequences.
what is Modern Slavery?
"Modern slavery" is where coercion, threats, or deception are used to exploit victims and undermine their freedom. It includes practices such as human trafficking, slavery, servitude, forced labour, debt bondage, forced marriage, and the worst forms of child labour. The Modern Slavery Act 2018 was created to address these acts and ensure businesses take responsibility for their supply chains.
Modern slavery and forced labour can occur in every industry and sector. Modern slavery distorts global markets, undercuts responsible business practices and poses significant legal and reputational risks to businesses. Businesses have a responsibility to respect human rights in their operations and supply chains, as outlined in the United Nations Guiding Principles on Business and Human Rights. This includes taking steps to assess and address modern slavery risks.
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.