Modern Slavery Commencement Proclamation 2018

Overview

The Modern Slavery Act 2018 was enacted by the Commonwealth Parliament to address the significant issue of modern slavery within Australia and its supply chains. This legislation aims to enhance transparency and accountability by requiring certain entities to report annually on the risks of modern slavery in their operations and supply chains, and on the actions taken to assess and address those risks. The policy objective of the Act is to combat modern slavery by ensuring that businesses are aware of and take steps to prevent human trafficking, slavery, servitude, and forced labour in their operations and supply chains. The Modern Slavery Commencement Proclamation 2018, issued by the Honourable Sir Peter Cosgrove AK MC (Ret’d), Governor-General of the Commonwealth of Australia, under the authority of the Act, specified that key sections and parts of the Act would commence on 1 January 2019.

Scope and Application

The Modern Slavery Commencement Proclamation 2018 applies to the Modern Slavery Act 2018, which aims to tackle modern slavery within Australia and its supply chains. This legislation applies to entities that conduct business in Australia and have an annual consolidated revenue of at least AUD$100 million, including public sector entities, listed entities, and foreign entities with operations in Australia. It mandates that these entities report annually on the risks of modern slavery in their operations and supply chains, as well as the actions taken to assess and address those risks. The geographic reach of this Act is national, impacting entities across the Commonwealth of Australia. Notably, the Act does not apply to entities with an annual consolidated revenue below AUD$100 million. The application of the Act may be further extended or restricted through subordinate instruments, allowing for adjustments in thresholds or the inclusion of additional entities as deemed necessary by the government.

Key Provisions

The Modern Slavery Commencement Proclamation 2018 (F2018N00189) sets the commencement date for sections 3 to 10 and Parts 2 to 4 of the Modern Slavery Act 2018, establishing the legislative framework designed to combat modern slavery in Australia. These sections and parts outline the key requirements and obligations that businesses and other entities must adhere to in their efforts to prevent modern slavery practices within their operations and supply chains. The commencement date of 1 January 2019 marks the beginning of the Act's enforceability, ensuring that entities falling within its scope start complying with its provisions from that date. Entities that are required to prepare a modern slavery statement under the Act must ensure that they meet the specified requirements. Section 3 of the Act defines the entities that are subject to the modern slavery reporting requirement, which primarily includes Australian entities and foreign entities conducting business in Australia with a turnover of more than $100 million. These entities must prepare and lodge an annual modern slavery statement that details the actions they have taken to assess and address modern slavery risks in their operations and supply chains. This includes identifying potential modern slavery risks, outlining the steps taken to mitigate those risks, and describing any initiatives or partnerships aimed at combating modern slavery. Failure to comply with the Modern Slavery Act 2018 can result in significant consequences for the entities involved. Under Section 19 of the Act, non-compliance with the modern slavery reporting requirement is considered an offence, which can lead to civil penalties. The maximum penalty for contravening this requirement is 200 penalty units, which as of 2024, equates to approximately $42,500 for corporations. Additionally, the Act allows for court orders that can require an entity to take specific actions to remedy the non-compliance, such as preparing and lodging a compliant statement within a specified timeframe. The Act also provides for the publication of non-compliant entities' names and details, which can further impact their reputation and operations. Furthermore, the Act mandates the establishment of a Modern Slavery Commissioner, as outlined in Section 10, who is responsible for overseeing compliance and enforcement of the Act. The Commissioner has the authority to seek information from entities, conduct investigations, and make recommendations to improve compliance. In cases of serious or repeated non-compliance, the Commissioner can also refer matters to law enforcement agencies for potential criminal prosecution. This dual approach of civil and criminal enforcement underscores the seriousness with which the Australian government views the issue of modern slavery and its commitment to eradicating it from within its borders.