The Australian government is set to join the growing list of countries taking a strong legislative stance on modern slavery in global supply chains. This comes after the country’s Minister for Justice, Michael Keenan, announced earlier this month the government intends to introduce legislation to “make it a requirement for large businesses to report annually on their actions to address modern slavery”.
What Would an Australian Modern Slavery Act Look Like?
This announcement was closely followed by the release of an interim report by the Joint Standing Committee on Foreign Affairs, Defence and Trade, which made key recommendations and observations to be considered during the development of an Australian Modern Slavery Act in the future. Specifically, the Committee noted its support in-principle for the development of a modern slavery act in Australia, along with the appointment of an independent anti-slavery commissioner. The group also said the proposed Australian Modern Slavery Act would seek to improve upon the UK model, while still maintaining consistency with international jurisdictions and best practices.
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Additionally, the report gestured toward a number of possible features such an Act might encompass, including a combined and consistent statement repository, support and guidance for business, penalties for non-reporting/non-compliance with reporting requirements, establishment of an Independent Anti-Slavery Commissioner, Australian government procurement requirements, and requirements for charitable giving and foreign aid.
Implications for Companies Doing Business in Australia
The interim report of the Committee marks a significant step toward Australia adopting their own Modern Slavery Act. While it is is likely the Australian legislation will align with the UK Modern Slavery Act and draw inspiration from other international reporting requirements to ensure consistency, companies should be aware they may be subject to additional reporting requirements as part of a future Australian Modern Slavery Act.
It should also be noted the interim report considers the potential for establishing penalties for non-compliance with the reporting requirements (in contrast to its UK counterpart), which would serve to add further damage to the existing risks of operational and reputational setbacks that can arise as a result of human trafficking and slavery in the supply chain. In addition, it also considers the establishment of a central statement repository and the publication of a list of non-compliant companies, businesses, organizations and governments. This could have significant negative impacts upon the reputation of these entities.
Next steps?
As the Committee works to fulfill the Terms of Reference, it continues to seek feedback from various actors. Members of the business community, civil society and other interested stakeholders are encouraged to provide feedback on the proposed act to ensure the suggested reporting requirements “reflect community expectations and [are] as simple, sensible and effective as possible”. Submissions can be made here and close on October 20, 2017, and will be considered in advance of the Standing Committee on Foreign Affairs, Defence and Trade’s final report.
Assent has helped numerous companies in scope of human trafficking and slavery legislation stay ahead of the regulatory curve through the use of our Human Rights Module. To learn more about the module, and about compliance with slavery regulations more broadly, get in touch with our subject matter experts at info@assentcompliance.com.